Renew Capital is at the forefront of Africa's startup revolution. We're gearing up for our most significant venture yet—an investment in up to 20 African startups sourced from 10 countries and 8 sectors. If you are an accredited investor and interested in learning more, take 2 minutes to apply to Renew Capital Angels™ and be part of the transformation.
Embracing Africa's Startup Revolution
By Matt & Laura Davis | Thu Nov 09 2023
Our Journey Through 8 Countries Meeting 50 Startups in 60 Days
Across the continent in 60 days: snapshots from a few of the countries on Matt and Laura’s whirlwind tour. Photos courtesy of Renew Capital.
After living and investing in Africa for more than a decade, we've embarked on what could only be described as an extraordinary adventure. Through the highs and lows, successes and setbacks, we've been building what we envision to become one of the region's premier investment firms.
Our story is one of true entrepreneurship, marked by the same trials and triumphs faced by those we invest in. From our base in Ethiopia, the "sleeping giant" of the African investment landscape, we've expanded across nine countries. Our recent marathon journey through 8 countries, meeting 50 startups, has reaffirmed a few things:
The Western perspective on Africa is due for a paradigm shift. The era of simply giving is being outpaced by a more impactful strategy: investing in Africa’s future. The continent is not looking for handouts; it is seeking partners in progress. Partners who understand that the future is being written in the code of startups, in the strategies of entrepreneurs who are as visionary as they are relentless.
At Renew Capital, we're not just observers; we're active participants in this transformation. Our history on the continent has shown us the undeniable: Africa is not just rising - it's thriving, innovating and redefining what's possible.
Calling All Angels: Rise to the Investment Challenge
We stand at a pivotal moment. To those on the outside looking in, this is your call to action. Renew Capital is backing startups and becoming part of a revolution that’s redefining supply chains and creating jobs. We are investing in the innovators who are shaping Africa’s tomorrow.
It’s time to transcend the old ways of nepotism and cronyism. To those successful African entrepreneurs and investors, investing in innovation is investing in a legacy that will endure. Political leaders and decision-makers, the resources at your disposal have the power to ignite change or stifle potential. The choices you make today will echo through the annals of history.
Our Pledge: Renew Capital’s Largest Investment Offering
In the coming weeks, Renew Capital will unveil its most diverse and comprehensive investment package to date. We are selecting up to 20 tech-enabled startups from a pool of talent that spans 10 countries and 8 sectors. These startups are not just businesses; they are beacons of hope and progress.
Our commitment goes beyond capital. We provide a scaffold of training and coaching that prepares these startups for the journey ahead. We’re calling on investors who are ready to be part of something transformative. Join us. Invest with intention. Let’s write history together.
If you’re ready to rise to this challenge and back the next generation of African entrepreneurs, apply now to Renew Capital Angels™. After submitting the 2-minutes application, accredited investors will have access to our largest investment opportunity to date. We will be sharing more in our Renew Capital Angels Members’ Call on Wednesday, November 15, so be sure to submit your application before then.
The time to act is now. Be a part of this landmark shift in how the world engages Africa. Your involvement is not just an investment in a company; it’s an investment in the future of a continent on the rise.
The Future Awaits. Let’s Build It Together
Here are some interesting facts about Africa:
Venture Capital Funding: In 2022, Africa raised $5.2 billion in venture capital across 786 deals, accounting for 3% of the total volume and 1.2% of the total value of global venture funding. Despite a global downturn in venture capital, Africa's market remained relatively stable, with only a slight decrease in funding compared to the previous year. However, it is important to note that the majority of these transactions were relatively small, with 65% of VC deals attracting less than $5 million in investments. Urbanization Trends: Africa is experiencing a significant urbanization trend. While its population has been largely rural, the continent is now driving urbanization at a pace similar to Asia's in previous decades. Sub-Saharan Africa, in particular, has seen a consistent increase in its urban population, with a 3.92% rise from 2020 to 2021. This urbanization is significant as it often correlates with increased economic activity and can provide a fertile ground for startups and investors. Projected Growth in VC Investment: There was an expectation that VC investment in Africa would sharply increase to between $3.8 billion and $4.7 billion in 2022, with projections reaching up to $6.8 billion by 2023. However, a decline in venture capital funding in the African tech startup ecosystem has been observed in 2023, which has raised concerns among entrepreneurs and investors about the potential stagnation of the sector if the funding does not meet the needs of growing companies. Emerging Opportunities and Sectors: The technology sector in Africa is burgeoning, and there is a growing acknowledgment that venture capital can support the expansion and innovation of tech startups on the continent. Moreover, the agriculture technology sector is seen as a promising area where venture capital can address food security issues and improve agricultural productivity. Unicorn Status Achievements: The rise of significant startups is underscored by achievements such as unicorn status, with MNT-Halan becoming Africa's first unicorn of 2023 and Egypt's first unicorn after raising $400 million.
This summary is intended for informational purposes only, is subject to change, and does not constitute investment advice or a recommendation to you. This summary is not intended as an offer to sell or a solicitation of an offer to buy an interest in any company (a “Company”) managed by Renew Capital or its affiliates. Such an offer to sell or solicitation to buy an interest in a Company may be made only by the delivery of subscription agreements relating to such Company and specifically delivered by Renew Capital to the recipient thereof. Investment in a Company is open solely to “accredited investors” (as defined by the SEC under the Securities Act of 1933, as amended) and, in addition, is intended only for sophisticated investors who meet the investor suitability requirements described in the subscription agreements and who can bear the risk of investment losses, including the potential loss of their entire investment.
Investments with Renew Capital are speculative in nature and involve a high degree of risk. The Renew Capital Angels invest in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries and include the risk of total loss of an investor’s entire investment.