In order to enable African companies and technologies to better develop, Digital Africa and BPIFrance have launched Africa Next. This vast community of financing and co-investment held a videoconference on July 16, 2020 and brought together several investors, accelerators, and innovators around the same issue: the development of African startups.
"Helping African businesses to develop and become a global reference"
The objective of the community is to highlight African companies with high internationalization and growth potential and to accelerate their fundraising. But also to develop co-investment, co-optation by trusted third parties and to give African startups the benefit of investors' experience in other markets.
According to Stéphan-Éloïse GRAS, Executive Director of Digital Africa, "The Africa Next Community is a service for investors and innovators. Its objective is to help the African business and technology ecosystem to develop and become a global reference."
More than 50% of startups close in Africa within ten years due to lack of financing
The fact is that more than half of African startups close down in less than ten years of activity for lack of financing. A survey conducted by Weetracker reveals that 54.20% of African startups have closed between 2010 and 2018. The main reasons given for these closures are mainly the lack of external funding and lack of experience. In addition, there is a lack of market (the majority of start-ups are based on a new idea), low demand and competition.
A springboard for co-investment and cooptation financing
The Africa Next Community presents itself as a real springboard to solve the failure of African businesses due to lack of funds and lack of experience.
During the first webconference, three African start-ups were presented to investors and other actors. They are MaxiCash, a money transfer solution, GoMyCode evolving in the digital transformation of organizations and Poa! Internet, a startup active in bridging the digital divide on the continent.
A new e-pitch session is planned for community players between October 1st and 15th. This session will be "open to more international investors" said Gilles Le Cocguen, Director of EuroQuity at BPIFrance.