GET INFORMED
At the first-ever Google for Africa event held virtually on Wednesday, Google announced the launch of a $50 million “Africa Investment Fund” through which it plans to invest in African startups.
Selected companies will also be provided with access to Google’s employees, network, and technologies to help them build products.
Targeted at early to growth-stage startups, the new fund is equity-based, marking a shift in Google’s approach to investing in African startups.
Over the last three years, the company’s existing initiative – Google for Startups Accelerator Africa – has provided more than 80 African startups with equity-free finance, cash awards as well as other benefits including working space and access to expert advisors.
Meanwhile, the Google Black Founders Fund will invest in Black-led startups in Africa by providing cash awards and hands-on support.
“In the last year, we have seen more investment rounds into tech startups than ever before,” Nitin Gajria, Managing Director for Google in Africa, says in an official statement. “I am of the firm belief that no one is better placed to solve Africa’s biggest problems than Africa’s young developers and startup founders.”
The new fund is part of a larger $1 billion that the U.S. tech giant plans to invest in Africa over a five-year period, which CEO Sundar Pichai says will “support the continent’s digital transformation.”
The investment focuses on enabling fast, affordable internet access for more Africans through advanced infrastructure; building helpful products; supporting entrepreneurship and small business; and helping nonprofits to improve lives across Africa.
“We’ve made huge strides together over the past decade – but there’s more work to do to make the internet accessible, affordable, and useful for every African,” Pichai says.
“Today I’m excited to reaffirm our commitment to the continent through an investment of $1B over five years to support Africa’s digital transformation to cover a range of initiatives from improved connectivity to investment in startups.”
If you enjoyed reading this article, please share it in your WhatsApp groups and Telegram channels.