Tech Founders to raise $200mln amid hunt for potential African unicorns

Initiated by Swedish Norrsken Foundation, the fund aims to raise $2 billion through engaging venture capital firms to co-invest in start-ups that could reach a valuation of over $1 billion — the criteria for being dubbed a 'unicorn', according to the Financial Times.

A first close of $110 million is to be announced on Monday.

The fund has a list of around 400 possibilities concentrated in South Africa, Kenya, and Nigeria which it is considering as initial investments.

Around 30 unicorn executives will dedicate $65 million to the new fund which will be managed from several locations including Cape Town, Johannesburg, Lagos, and Nairobi.

The fund targets those places with expected greatest impact and consequently top financial returns.

It will tackle sectors such health care, fintech, and many others.

“We want to help the best African entrepreneurs. We want to extend the network that the rest of the world has access to, but Africa does not,” the Financial times reported, citing Hans Otterling, partner at venture capital firm Northzone which is backing the fund.