Sh100 million fund targets tech startups

Nigeria-based PanAfrican Capital Holdings (PAC Holdings) has set up a venture capital project targeting Kenyan technology startups with up to Sh100 million in seed funding.

The project, dubbed The Catalyst, seeks to identify and invest in growth and product expansion convincing business models and market opportunities.

PAC Holdings is a proprietary investment company with a focus on unlocking value in emerging markets across Africa.

Global Coordinator for The Catalyst Toluwalope Oni said the project seeks to not only facilitate and finance the delivery of technology-enabled solutions but also promote African entrepreneurship.

“Our industries of primary focus are pivotal gears of a digital African economy, and these include finance, education, health, agriculture and logistics,” he said. 

Tech firms top funding list

The project comes as the Venture Capital in Africa Report shows that 90 per cent of all reported deals between 2014 and 2020 were in technology-enabled companies operating in a variety of sectors.

Financials accounted for the largest share of venture capital deals by both volume (at 22 per cent) and value (at 26 per cent) from 2014-20, with information technology (18 per cent) and consumer discretionary (16 per cent) accounting for the second and third largest share of deals by volume within the same period.

“The project’s target is to inject an initial sum of $1,000,000 (Sh113 million) into ‘growth stage’ businesses that meet its criteria of a clearly defined minimum viable product, solving a need/gap either on the demand or supply side in Africa, generating revenue enough to cover direct costs, seeking capital to boost expansion required to achieve exponential scale and little or no debt balances in the company’s balance sheet,” said Mr Oni.

Eco-system of strategic investors

He further said the selected businesses that become successful would benefit from PAC Holdings access to an ecosystem of strategic investors and mentors to enjoy product and service synergies.

Headquartered in Lagos with a presence in Accra, Nairobi and Mauritius, PAC Holdings has a special focus on key sectors across Africa including financial services, hospitality and entertainment, and real estate.

Others are agro-allied  fast-moving consumer goods, healthcare, renewable energy, ICT and media.