On the eve of the 77th Session of the United Nations General Assembly, Janngo Capital Startup Fund (JCSF) announced its first closure at EUR34 million (roughly US$36 million) in capital commitments (UNGA).
Janngo started in 2020 with the idea that technology and capital can speed up development and help Africa reach the SDGs. It will build, grow, and invest in pan-African digital champions with great business models and a wide range of social impacts.
What the funds will be used for
Half of the money raised by Janngo’s newest fund will go to organisations run by or for women. The investment management firm has committed EUR60 million (about US$63 million) to invest in entrepreneurs in Africa that are using technology to accelerate development and fulfil the Sustainable Development Goals.
The Janngo Capital Startup Fund is the second investment vehicle run by the management company. It plans to invest up to EUR5 million in seed and growth capital in early-stage technology. Technology-enabled startups that:
- Help people in Africa gain better access to necessities like healthcare, education, and financial services.
- Help small and medium-sized African enterprises gain better access to markets and capital.
- Create widespread, long-term employment opportunities, particularly for young people and women.
With a global rate of entrepreneurship of 26%, women in Africa have the highest rate of any continent. However, they are short of $42 billion in funding and have restricted access to expansion financing. Janngo Capital, one of the only African fund management organisations founded, owned, and driven by women, has pledged to spend at least half of its profits on businesses run by or primarily benefiting women.
Seeing major global investors unite around our ambition to support entrepreneurs and create digital champions across Africa makes us pleased to manage Africa’s largest gender-equal tech VC fund. Fatoumata Bâ, Founder & Executive Chair of Janngo Capital, said, “With investments in 11 tech and tech-enabled startups, including the soonicorn Sabi, Expensya, or Jexport, we have built a strong track record in the region.”
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There is clear proof that the companies in our current portfolio, which are 56% led by women and 54% led by francophones, are using cutting-edge technology to address critical market failures and generate new opportunities in fields like healthcare, transportation, finance, retail, food and agriculture, and the arts. Fatoumata Ba also says that the Janngo Finance Startup Fund will play a key role in ensuring that African entrepreneurs have more fair access to early-stage capital on a continent that gets less than 2% of the global VC fund.
Janngo will influence Africa’s economic growth.
Economically, Africa is booming, and its population is expanding at an astounding rate. By encouraging business growth and new ideas, we think we can help raise people’s living standards and accelerate social development in that area. Ambroise Fayolle, the vice president of the European Investment Bank, said, “We are happy to work with Janngo Capital Startup Fund again through our Boost Africa Initiative.”
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Stefan Nalletamby, director of financial sector development at the African Development Bank, said, “The Janngo Fund can drive the change from a more traditional business ecosystem to a dynamic, youth-driven, technology-focused entrepreneurial community.” It’s not just Android that’s gaining popularity in Africa; other mobile operating systems are also. Our investment through the Boost Africa Program will help make up for the new, soon-to-be-launched first generation of venture capital funds that focus on early-stage businesses do not have enough risk capital. The Janngo Start-up Fund also gives innovative startups and small and medium-sized businesses (SMEs) a lot of chances to grow.
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“By investing in Janngo Capital Start-up Fund through FISEA +, the AFD Group facility advised by Proparco and part of the Choose Africa initiative, PROPARCO is teaming up with a fund manager that can provide both critical financing and strong mentoring to startups across Africa, with a unique emphasis on the Francophone West African region.” Proparco is committed to helping the next generation of African business leaders succeed, especially in Francophone Africa, where startup funding is much lower than in other parts of the continent. Janngo’s unique way of running a startup studio was a big part of its appeal. This new way of starting a business has the potential to fill gaps in the local market. Lastly, Proparco’s Head of Private Equity, Jérémie Ceyrac, was happy to announce that the company would work with a female-led fund manager to help close the gap between men and women in venture capital.
About Janngo Capital
Janngo was created to speed up economic growth in Africa and help reach the Sustainable Development Goals by bringing together investment money and cutting-edge technology. We think that venture capital is a good way to help women get the same rights as men and that entrepreneurship is a key way to create many new jobs, especially for young people and women.