Introduction
The Baobab Network (TBN) is a Nairobi-based accelerator that funds and supports the growth of early-stage internet companies throughout Africa. Four new startups from Nigeria, Ethiopia, South Africa and Zambia have been selected for the latest cohort. Oval Interactive, a Nigerian interactive martech platform, offers businesses the chance to communicate with customers through their flagship game Trivia Billionia. Local Knowledge is a traveltech that helps digital tourists discover Africa and improve the lives of locals.
Four new startups have been selected for the latest cohort of The Baobab Network (TBN), a Nairobi-based accelerator that funds and supports the growth of early-stage internet companies throughout Africa.
Startups from Nigeria, Ethiopia, and two South African companies make up the cohort. Oval Interactive, a Nigerian interactive martech platform, offers businesses the chance to communicate with customers through their flagship game Trivia Billionia while enabling people to earn and learn.
From South Africa, Local Knowledge is a traveltech that helps digital tourists discover Africa and improve the lives of locals, while Lemon is a platform that makes it simple for businesses to buy industrial supplies.
The final member of the cohort is Shemach, an online marketplace that makes it simpler for small shops in Ethiopia to order, store, and pay for products.
Speaking on the cohort, Christine Namara, programme lead at TBN, stated: “Our companies have gone on to raise more than $50m in follow-on funding since we first launched our accelerator in 2019, so the model is definitely working.”
The cohort joins 25 more firms that The Baobab Network has backed since the commencement of its accelerator program in 2019, including 5 from the inaugural batch from 2022. Additionally, the accelerator is already accepting applications for Cohort 1,2023.
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The Baobab Network Invests $25,000 In 5 New African Startups
The Baobab Network are happy to report that in their very first batch of the accelerator program, they recently added 5 new start-ups to their portfolio! They have invested in 20 tech start-ups across 10 African markets between 2019 and 2021, and their network of angel investors and investors has provided additional capital totalling over $25 million.
Along with the $25,000 cash, they also offer a 3-month acceleration program divided into 2 weeks of intense, full-time sessions and 10 weeks of assistance from their top-notch venture partners, outside mentors, and experts.
In the past, they have assisted the portfolio companies in obtaining follow-on funding and so far have witnessed two exits: Shago Payments, a Nigerian payments platform, was acquired by fellow Baobab Network company, Alerzo, which closed a $10.5 million Series A round in 2021 and is currently raising a Series B round at x valuation, and Mangwee, a Zimbabwean FinTech, was acquired by Ghana’s Zeepay.
The inaugural cohort included 5 firms from 3 countries in the fascinating industries of legal/regulatory, fintech, HR-tech, and HR analytics, supporting their sector- and country-agnostic premise.
With the addition of this cohort, their portfolio now includes 25 great start-ups from 11 different countries since we began our accelerator program in 2019.
The Baobab Network has been propelling companies with capacity building and funding since 2019, and after making five more investments as part of a new strategy, it now helps 25 startups in 11 countries. Beginning in March 2022, the newest cohort began a three-month intense growth program.
“We felt now was the right time to launch our cohort investment model, as the quality of companies that we see in our pipeline has improved dramatically since we first started investing in 2019,” said Arthur Chupeau, head of ventures at The Baobab Network.
“We now see over 1,500 applicants each year, and in the past 24 months, we’ve processed applications from companies in more than 50 African countries – so our brand reaches these days is huge. Our goal is to be the preferred partner for every entrepreneur in Africa that wants to raise their first cheque.”
Three of the investors were from Nigeria: Lendha, a full-stack, tech-led lending platform; GoodTalent, a talent marketplace for businesses to crowdsource, screen, hire and pay engineering talents globally for full-time, remote, and contract roles. Sidebrief streamlines legal, incorporation, company admin, banking, and regulation through their APIs to help African companies build across borders; and GoodTalent.
Additionally chosen were Zambia’s Mighty Finance, a lending platform for SMEs, and Egypt’s Opus Analytics, which develops HR and people analytics tools for SMEs and corporates in the MENA area and beyond.
The five new businesses join 20 other startups that The Baobab Network has invested in since it started its accelerator in 2019. Each of the five new businesses received US$25,000 in funding and a comprehensive program of growth support.
“Alongside our funding, we see our core role as an accelerator as being to help founders navigate those tough early months of scaling their business; getting to product market fit, iterating their product, and building revenue traction. We work closely with founders to prepare them for a bigger seed round within 6-12 months of joining us,” said Wanjiku Kimani, a venture partner at The Baobab Network.
Investors can register for an online demo day in early June, where startups from the cohort will present. The Baobab Network is currently accepting applications for its upcoming cohort, which will begin in June 2022.
Why Is The Baobab Network Important To Tech Startups?
Building ties and exchanging information with other business experts is the practice of networking. This skill is necessary for any tech startup to succeed.
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Through peer connections within the program and external professional ties, Baobab Network aid this process. By the time tech startups graduate from the incubator, they should anticipate having a sizable professional network.
Another reason why Baobab Network is required for any startup is funding. For tech startups to succeed, they require outside capital. Baobab offers participants a one-time payment in exchange for a small portion of their company. Additionally, Baobab Network offers workshops and chances for pitch sessions where business owners can propose their concepts to potential investors, resulting in more funding opportunities.
Conclusion
This move by The Baobab Network would certainly help in boosting the startup processes of these businesses. They would also learn from the accelerator on what it means to become big in their respective industries.