Carbon – a Nigerian fintech startup has just recently announced the launch of $100,000 pan-African fund to address funding issues and also support holding back budding tech entrepreneurs in Africa
The Carbon Disrupt Fund is set to invest up to $10,000 on each start-up while these startups would in exchange, give a five percent equity back to Carbon.
Asides the monetary value, the selected startups will have access to Carbon’s API, which gives them an opportunity to leverage on Carbons customer base and its innovative technology base to allow the startups to get to the market faster. Most startups get to spend a lot of money trying to acquire customers instead of putting effort into collaborations.
Ngozi Dozie, the co-founder of Carbon affirmed this by stating that “A lot of money is spent on acquiring customers, mainly via social media, when a more collaborative approach among tech companies could be more efficient. Our fund will enable this collaboration, allowing others to market to our customer base and vice versa – a win-win for everyone”
“There are many excellent companies across the continent looking for the kind of scale Nigeria offers and we are excited to partner with them to provide the support and financial investment they need. We are equally excited to expand beyond Nigeria and Kenya by working with a new generation of innovators across the continent and sharing our experience to tackle common obstacles to growth,” she added.
That being noted, this fund will provide mentorship for these startups. Carbon will also provide office spaces for them to work in its Lagos offices.
This fund is open to startups in several sectors such as those in insurance, health, and education. However, startups in the fintech space are not privy to this Carbon disrupt Fund because the company believes over 50percent of startup funding in the previous year went to Fintech.
Hopefully, this initiative would be a spark for other companies to invest in the tech ecosystem.
Now is the time for startups in Uganda, Nigeria, Kenya, Ghana, Egypt, and Cote d’Ivoire to get the funding they have always wanted.