In a sign that Africa’s start-up space is bound for ‘big wins,’ the African Business Angel Network (ABAN) and AfriLabs have launched a co-investment fund.
This plan is expected to increase the network of funders with massive funds for African growth-stage entrepreneurs.
It is expected to ensure proper tracking of the activities of African start-ups and their impact on development.
Start-ups will receive funding and other investments from ABAN-certified angel investors.
“Catalyst is a cross-stakeholder initiative that aims to increase the pool of capital available to promising African growth-stage entrepreneurs, as well as support the startup ecosystem including hubs and angel network,” says AfriLabs board chair Rebecca Enonchong.
“Also, Catalyst would increase the visibility of impact to institutional funders.”
ABAN’s president Tomi Davies believes this partnership will change Africa’s start-up landscape permanently.
“Funds from Catalyst will be released after startups have received investments from angel investors that are part of an angel network registered with ABAN,” he said.
The Catalyst co-investment fund is expected to commence by year-end.