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Marlon Nichols took the stage at AfroTech last calendar week to discuss the grandness of building family relationship when it comes to get into into a new market . “ One of the first things you do when you go to a new marketplace is you ’ve fuck off to run across the new histrion , ” he said . “ Like , what do masses need ? What ’s raging right now ? ”
Nichols is the co - founding father and managing general better half at MaC Venture Capital , which just raised a $ 150 million Fund III , andhas invest morethan $ 20 million into at least 10 African company . His first investment in the continent was back in 2015 before enthrone in African startups became trendy . He said that investiture helped him grow his presence in Africa .
African startups raisedbetween $ 2.9 billion and $ 4.1 billion last class . That was down from the $ 4.6 billion to $ 6.5 billion raised in 2022 , which defied the global venture slowdown .
He mark that the crowing sector good for innovation in Africa were health tech and fintech , which have become two of the continent ’s biggest industries due to the lack of requital infrastructure and wellness systems that miss funding .
Today , much of MaC Venture Capital ’s investment find in Nigeria and Kenya , helped in part by the full-bodied meshwork Nichols ’ firm has been able to craft . Nichols say that people start making connections with other people and foundation garment that can facilitate work up a internet of swear advisers . “ When the deal comes my way , I look at it and I can go past it to all these people that get it on from a firsthand perspective , ” he said . But he also said that these networks allow one to angel invest in budding companies , which is another way to enter the market .
Though funding is down , there is a glimmer of Bob Hope : The funding dip was expect as investors retreated , but , at the same time , it was follow by investor look beyond the four major African markets — Kenya , South Africa , Egypt , and Nigeria — and spreading capital in Francophone Africa , which set off to see a spate in deal catamenia that put it on equation with the “ Big Four . ”
More early - leg investors have started to pop up in Africa , too , but Nichols say there is a bigger need for later on - staged firms that invest from Series A to C , for case , to enter the market place . “ I think that the next great trading relationship will be with countries on the continent of Africa , ” he say . “ So you got to plant the seeds now . ”
