Since the first undersea internet cable was installed, the tech scene and inadvertently the startup ecosystem in Kenya has come a long way. Though relatively young, Kenya has been able to take the position of third-best in Africa and position itself as one of Africa's "big four" startup hubs alongside Egypt, Nigeria, and South Africa. With at least 300 startups operating in various sectors, Kenyan entrepreneurs are creating groundbreaking solutions for their communities that they want to grow globally, and garnering significant attention from investors worldwide. In this article, we have compiled a comprehensive list of the Top Venture Capitalist Funds and Angel Investors in Kenya who may be the right funding partner for you.
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Startups should consider raising funds in Kenya for the following reasons:
1. Strong Startup Funding: Kenya is one of the continent's four leading investment destinations, securing a total of USD $1.2 billion between 2015 and 2022, trailing after Nigeria. Throughout the years, the overall amount of financing acquired by Kenyan entrepreneurs has increased significantly. As of mid-November 2022, 63 Kenyan companies have received investments totaling USD 506 million. This figure nearly doubles the amount raised by Kenyan companies in 2021, and so constitutes a record-breaking year for the ecosystem. Between 2015 and 2022, Kenya also attracted the second-highest number of investors of any African country, with over 435 different entities investing in Kenyan firms as compared to Nigeria's 641, South Africa's 382, and Egypt's 203.
2. Startup Support Programs: Kenyan startups receive unprecedented ecosystem support, with a number of startup accelerators and incubator programs available for Kenyan entrepreneurs to participate in. According to The Kenyan Startup Ecosystem Report by Disrupt Africa, over half of the 308 firms surveyed had participated in some sort of startup program, making up 45.5% of participation as compared to Nigeria's 45.1%, Egypt's 38.6%, and South Africa's 25.7%. There are several local alternatives, as well as more international programs. Many of these initiatives are stand-alone services, while others are run by or in partnership with various hubs and venture capital firms. They frequently present startups with opportunities to meet with public or private sector stakeholders, develop sector-specific solutions, and raise funding.
3. Government Support: Kenya is one of the several African countries that have begun attempts to implement a Startup Act. A StartUp Bill was launched in 2020 with the purpose of stimulating entrepreneurial growth and creating a more conducive environment for innovation. In 2021, the Federal Development Ministry (BMZ) will begin the DeveloPPP Ventures program, which will provide subsidies of up to USD 106,000 as well as tailored professional assistance to Kenyan businesses. The initiative is aimed at young entrepreneurs who want to contribute to sustainable development and better living circumstances for residents. Aside from these, there are still a number of other government initiatives aimed at supporting and encouraging entrepreneurial activity in the country through funding and other forms of support.
Venture Capitalist Funds in Kenya
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2013
Stage: Seed
Focus: Energy, Agriculture, Mobility, Waste
Notable Portfolio: Sistema.bio, Ampersand, Odyssey, Clean Crop Technologies
Factor[e] Ventures is a venture capital firm/venture builder that seeks to invest in and assist individuals and ideas that transform energy, agricultural, mobility, and waste concerns into de-carbonized solutions for emerging and frontier markets. They are highly hands-on and provide entrepreneurs with the expertise, tools, and resources firms require to expand their operations and make a worldwide impact.
Year of Inception: 2012
Stage: Seed
Focus: Technology
Notable Portfolio: Copia, Knabu, Orbit Health, Sendy, StorkBrands, Moringa School
Savannah Fund is a seed capital fund that invests in early-stage technology (web and mobile) firms in Sub-Saharan Africa. The fund aims to close the investment gap in Africa by providing firms with funds, mentor networks, and technical assistance from both local and Silicon Valley experts.
Year of Inception: 2001
Stage: Seed, Series A
Focus: Agriculture, Education, Energy, Financial Inclusion, Health, Housing, Water & Sanitation, Workforce Development
Notable Portfolio: Akili Network, CropSafe, Easy Solar, Esoko, First Access
Acumen was formed with the goal of using the power of entrepreneurship to create a future in which everyone has the opportunity to live with dignity, and where every human being has the same potential. They make early-stage investments in firms with solutions that can help the underprivileged to change their lives. They also provide their firms with the resources, networks, technical help, and strategic leadership they require to grow.
Year of Inception: 2018
Stage: Seed, Series A
Focus: Fintech, Health, New Retail, Transport and Logistics
Notable Portfolio: Halan, A Pay, Gona
Shaka Ventures invest in early-stage startups and provide not only capital but also worldwide outreach, a user base, and technical help to African companies. Portfolio companies can leverage their access to a vast network of mentors, advisors, and investors, as well as relationships with local communities, multinational businesses, and government authorities to grow their startups.
Year of Inception: 1994
Stage: Seed, Series A
Focus: FinTech, Logistics, Agribusiness
Notable Portfolio: AsokoInsight, Shortlist, Kutuma, AntaraHealth
Zephyr Acorn invests in and supports early-stage technology-enabled firms in East Africa. They strive to invest in areas revolving around digitization of traditional business models, utilization of technology, innovation in product and service distribution, and introduction of new products and services. As part of their portfolio, they actively support firms in areas such as capital raising, finance and financial planning, strategy, recruiting, new market entrance, and governance to help them grow.
Year of Inception: 2020
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Daktari Africa, Popote Payments
AFZA Capital seeks to assist and invest in early-stage businesses that have a positive social impact. They not only provide capital but also strive to provide a comprehensive support structure to help improve the performance of firms.
Year of Inception: 2017
Stage: Seed, Series A, Series B
Focus: Sector Agnostic
Notable Portfolio: Jumba, Cinch, Utu, Stack, Fingo, African Originals
Chandaria Capital invests in, advises, and collaborates with entrepreneurs to build significant businesses that can alter the continent. They take a hands-on approach to assist entrepreneurs in honing their abilities and growing their businesses through coaching, consulting, education, mentorship, and networking. They will help portfolio companies to improve their basis and maximize their potential, as well as provide valuation support and network to help secure the next round of funding.
Year of Inception: 2006
Stage: Seed, Series A, Series B, Series C
Focus: Financial Services, Food & Agriculture, Mobility & Logistics, High Impact
Notable Portfolio: Copia, Sendy, Origen Fresh, Asante Financial Services Group
Goodwell was formed with the goal of "doing well by doing good." As such, they have become a forerunner in the impact investment industry, focusing on financial inclusion and inclusive growth in industries that provide essential products and services as well as income creation possibilities to neglected areas. They provide their portfolio firms with capital and unrivaled local knowledge, as well as access to expertise and markets across the African continent and beyond to grow businesses and impact.
Year of Inception: 2011
Stage: Series A, Series B, Series C
Focus: IoT, Sustainable Solutions, Financial Services, Mining
Notable Portfolio: Fuzu, Sanergy, Koko, Poa! Internet, Effco
Beginning as a registered investing club, Cornerstone Enterprises have now grown into a seasoned venture capital firm in Kenya. They take a hands-on approach to investing and assisting investee firms in achieving sustainable and meaningful growth. They provide an array of support, including investor and valuation support, sales and marketing, business strategy, and corporate advisory.
Year of Inception: 2014
Stage: Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: GreenPath, BasiGo, Komaza, iProcure, mPharma
Novastar Ventures is an Africa-focused venture capital firm that aims to drive the entrepreneurial revolution to alter African markets and sectors for the betterment of people and the planet. Their funds are dedicated to assisting businesses that supply critical products and services in novel ways and boosting planet-friendly ideas and technology.
Year of Inception: 2011
Stage: Series A, Series B, Series C
Focus: Social Impact
Notable Portfolio: BURN Manufacturing, Alive & Kicking, ED Partners
With the belief that enterprises have the capacity to eradicate poverty, Yunus Social Business is an organization that turns donations into investments in social enterprises. Founded by Peace Nobel Laureate Prof. Yunus and Saskia Bruysten, the philanthropic venture fund invest in and provide support for social enterprises that employ, educate, offer healthcare, and supply clean water and electricity to nearly 13 million people in East Africa, Latin America, and India. Donations are converted into investments in social enterprises, which we reinvest indefinitely, enhancing the effect each time.
Year of Inception: 2014
Stage: Series A, Series B, Series C
Focus: Social Impact
Notable Portfolio: Drink Well, Give Directly, Builher, Babban Gona, Lively Midns
The Global Innovation Fund is a registered charity and a non-profit innovation fund that supports innovations with the potential for large-scale social impact via grants, loans (including convertible debt), and equity investments. They are focused on resolving critical development issues in low- and lower-middle-income nations and improving the lives of the world's poorest people. As such, they invest in the creation, rigorous testing, and scaling up of innovative products, services, business processes, or policy changes that are more cost-effective than existing practices.
Year of Inception: 1999
Stage: Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Twiga Foods, Ajua, Andela, Kobo 360, Terragon, Ilara Health, Shara
TLcom Capital invests in and collaborates with entrepreneurs who are using technology to find market solutions to significant challenges; transforming traditional industries and creating new ones. Beyond capital, they mobilize their resources, expertise, and network to provide strategic, operational, and financial assistance for investee firms to build and implement better business models in broad markets.
Year of Inception: 2017
Stage: Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Koko, Mono, Workstyle, Lynk, Appzone, Carry1st
Lateral Capital is a mission-driven venture capital firm that seeks to serve as a long-term partner for visionary entrepreneurs who are developing essential technologies for Africa. They make investments in technology-enabled firms that successfully tackle important pain points in critical industries such as finance, energy, education, and healthcare.
Angel Investors in Kenya
The Angel investors listed below are part of an Angel community located throughout Kenya. They may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio:
Kenya Investment Network is an angel investment platform where founders can pitch their projects and state their funding requirements in order to find angels. The platform also allows founders to browse through a number of angel investor members on the website and contact them directly.
Stage: Pre Seed, Seed
Focus: Sector Agnostic
Notable Portfolio: Mosmos, AMP, Rescue,co, Uncover, BuuPass, Rubyx
NaiBAN is a community of technology-enabled startup founders, entrepreneurs, professionals, and tech enthusiasts who support and invest in tech startups. Made up of over 100 business angels, their aim is to be entrepreneur-first investors who actively promote startups by providing advice, contacts, and capital for founders.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
ABAN, standing for African Business Angel Network, is the largest pan-African association of angel investment networks with over 56 member networks in more than 40 African countries and the Diaspora. They exist as the contact point for various networks, in which founders may browse through their network directory to find relevant networks in their region.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Betty, Bankly, Kwik, Migo, Omnibiz, Oze
Rising Tide Africa is a collection of female angel investors that leverage their influence, network, and wealth to positively affect and actively create a New Africa. They manage an investment pool that focuses on early-stage, digitally, and technologically-enabled enterprises, that are largely female-owned, female-led, or have gender-diverse leadership and management teams. Aside from capital, they provide coaching, training, networking, and further investment support to investee firms.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Rology, Chpter
Founded in 2017, Viktoria Business Angels Network (VBAN) aims to bridge the gap between entrepreneurs and angel investors and facilitate the investment flow. They syndicate local and international investor capital into seed-stage investments in East African startups, particularly in entrepreneurs whose firms are making a significant contribution to resolving sector-wide issues in their core industry.
As a result of a large population with access to technology, a rising number of active investors, and an expanding number of support groups; the Kenyan startup ecosystem has achieved significant progress. Despite recent economic challenges and an overall worldwide downturn, the ecosystem continues to achieve robust year-on-year growth; demonstrating the resilience and significant market potential of the country.
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