Factor[e] Ventures Announces African Venture Studio Delta40 to Fund African Startups
The venture-building company Factor[e] Ventures has opened a new venture studio for African entrepreneurs named Delta40.
Factor[e] Ventures invests in early-stage companies in sub-Saharan Africa and Southeast Asia.
The venture studio will have its headquarters in Kenya and operations in Nigeria. It wants to invest between $100,000 and $600,000 in businesses in the fields of energy, agriculture, and transportation.
The IKEA Foundation, the Autodesk Foundation, the Global Energy Alliance for People and Planet (GEAPP), the Bezos Earth Fund, and Wilson Sonisi, along with other governmental, business, and financial organizations, have all contributed to the studio’s first funding.
By providing co-founder services including product testing, technology brokering, and early-stage commercialization, Delta40 intends to derisk industries that are generally neglected by investors, such as agriculture, energy, and mobility.
The co-founder and managing partner of Delta40, Lyndsay Holley Handler, thinks that the venture studio model may significantly speed up and improve the success of innovation from conception through scale-up and exit.
The energy, agricultural, and mobility sectors contributed for less than 8% of all funding on the continent last year, according to Partech’s 2022 Africa Tech VC study.
Delta40 supports local and diverse founders as they link their technology and markets in an effort to lessen the effects of climate change in Africa. The venture studio is actively reviewing new concepts and has already begun developing six firms.
