Will Africa’s Smaller Startups Survive this Year?
Investment in African startups could drop by as much as 40% by the end of the year due to the Covid-19 pandemic—but the bigger question for smaller startups is if they will remain alive at all, as investors become more risk-averse? Industry insiders expect that the funding slowdown to prove most damaging for the youngest SMEs as venture capital likely favours established startups with proven business models. In an effort to help startups stay afloat, Ventures Platform, an Abuja, Nigeria-based early-stage fund, is creating a startup relief programme to disburse emergency grants from $5,000 to $20,000 for 6 months to early, high-growth stage startups that may require cash lifelines. This has been launched in collaboration with Acumen, a New York based impact investor, and LoftyInc, a Lagos-based investment firm. The partners are inviting other investors, ecosystem players, development partners, and government institutions to also join the NISRF.
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