Delta40 Secures $20 Million to Propel African Venture Studio
Delta40, a pan-African venture studio, has successfully raised $20 million in funding intended to support a comprehensive venture studio model and investment fund.
As reported by Disrupt Africa, Delta40 was established with the aim of enhancing Africa’s income levels and addressing climate change through the creation and investment in technology ventures. The venture studio’s mission aligns with the recent launch of VC firm Factor(e)Ventures in March 2023, focusing on innovative approaches in the region.
Delta40 invests in early-stage technology companies that tackle critical issues in energy, agriculture, water, and mobility across emerging markets. The studio prioritizes collaboration with African and women founders to foster disruptive innovations that drive income growth and combat climate change.
With a focus on technology-driven initiatives in energy, agriculture, and mobility, Delta40 seeks out experienced and diverse leaders to guide its ventures. In addition to financial support, Delta40 acts as a co-founder, facilitating rapid product testing, technology brokerage, and early-stage commercialization to expedite the venture development process.
The recent $20 million funding round includes contributions from a variety of institutional investors and partners, such as the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, Rockefeller Foundation, Alan and Gil Gray Philanthropies, Relife Impact Fund, Small Foundation, Lemelson Foundation, Factor(E) Ventures, and the Skoll Foundation, alongside significant participation from advocates based within Africa.
Having expanded to Lagos, Delta40 attracts a diverse group of 54 investors from 13 countries, comprising global institutions, high-net-worth individuals, and development finance institutions (DFIs). This funding network includes participants from across Africa and Silicon Valley, highlighting a collaborative ecosystem where founders actively support one another.
According to Lindsey Hawley Handler, Founder and CEO of Delta40, the studio is committed to building and scaling innovations that enhance lives, bolster economies, and protect the planet. She emphasizes that over 75% of their investors and team members have launched ventures in Africa, bringing valuable expertise and established networks to the table.
Delta40 provides initial funding ranging from $100,000 to $500,000 at the idea and seed stages, with opportunities for subsequent investments. Beyond financial backing, the team serves as a long-term resource for startups, offering assistance in commercial growth, fundraising execution, financial modeling, and strategic introductions to facilitate future funding rounds.
Georgia Levenson Keohane, CEO of the Soros Economic Development Fund, expressed pride in supporting Delta40, stating that it encapsulates the bold, locally-driven innovation critical for fostering inclusive economic and environmental resilience throughout Africa.
