(Bloomberg) -- Tech accelerator Startupbootcamp, British-East African business tycoon Ashish Thakkar’s Mara Group and Blend Financial Services are planning a $250 million fund to invest in new African technology companies.
The venture is also raising money from other development institutions and expects to make its first investments in the next three to six months, Thakkar said in an interview.
The deal, which was signed at an Africa-focused event at the Future Investment Initiative in Saudi Arabia last week, will target startup hubs in South Africa, Nigeria, Kenya, Ivory Coast and Egypt, according to Thakkar. The fund hasn’t been reported previously.
Africa is home to the world’s fastest growing and youngest population, with many turning to technology to deal with a myriad of challenges, including limited infrastructure. Cities including Cape Town and Johannesburg in South Africa, Nairobi in Kenya and Ebene in Mauritius are likely to emerge as the continent’s tech hubs, according to a study by New World Wealth and South African software developer Platform45.
Startupbootcamp is a network of accelerators active globally with a total portfolio valuation of €5.6 billion ($6 billion).
“I have been looking for a platform to plug into, as we did a lot of angel investing as a group and a family, and that is very challenging if you don’t have economies of scale,” Thakkar said.
The initial fund will target startup funding rounds and pre-IPO rounds, according to Thakkar, who co-founded Africa banking venture Atlas Mara Ltd. with ex-Barclays Plc Chief Executive Officer Bob Diamond.
“This is a good start,” Thakkar said. “My medium- to long-term outlook to this is that we would be able to create early and some later stage funds.”
--With assistance from Christine Burke.
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