Local funding of $4 million earmarked for early-stage African startups through partnerships with regional entities by Village Capital
The Africa Ecosystem Catalysts Facility (AECF), a groundbreaking initiative, has been unveiled by global nonprofit Village Capital. The AECF, supported by the Dutch development bank FMO and the Netherlands Enterprise Agency, is designed to channel capital into early-stage startups offering local solutions for economic mobility and climate resilience across Africa.
As part of this initiative, Village Capital has partnered with five Entrepreneur Support Organizations (ESOs) in Ghana, Nigeria, and Tanzania. These local organizations, including Reach for Change (Ghana), Africa Fintech Foundry and Fate Foundation (Nigeria), Anza Entrepreneurs, and Ennovate Ventures (Tanzania), will not only act as gatekeepers but also as co-evaluators and ecosystem builders. This approach allows for more informed investment decisions that reflect local realities.
Since its founding in 2009, Village Capital has raised over $7 billion in investment capital to support approximately 1800 startups worldwide. The new partnership aims to de-risk funding and unlock more targeted investments, bridging persistent funding gaps in the early-stage ecosystem.
In addition to the new fund, Village Capital is also hosting a Moonshot event in Lagos on October 15-16. This event will feature top African founders, creatives, and tech leaders, and early bird tickets are now available with a 20% discount.
In 2024, Village Capital invested $850,000 in two African agritech startups, Aquarech (Kenya) and Coamana (Nigeria), demonstrating its commitment to supporting African startups.
The Africa Ecosystem Catalysts Facility (AECF) is part of Village Capital's broader strategy to support early-stage African startups by partnering with local ESOs that are deeply rooted in their communities. This context-first approach leverages community knowledge and matches local realities, ensuring that the support provided is tailored to the unique needs of each community.
- The Africa Ecosystem Catalysts Facility (AECF) acknowledges the importance of fintech startups, given its focus on channeling funding into innovative technology solutions that cater to economic mobility and climate resilience across Africa.
- The new partnership between Village Capital and five Entrepreneur Support Organizations (ESOs) in Africa will foster innovation by offering more informed investment decisions, reflecting local realities and strengthening the early-stage startups in sectors such as fintech.
- As part of its commitment to the African startup ecosystem, Village Capital has invested in various sectors, including fintech, highlighted by its $850,000 investment in two African agritech startups, Aquarech (Kenya) and Coamana (Nigeria).
