Norrsken22, a venture capital firm focusing on Africa, has successfully concluded its fundraising efforts, reaching a total of $205 million, surpassing its initial goal by $5 million. The firm’s primary objective is to support African startups that have reached the growth-stage, signifying their readiness to scale and expand their operations.
Launch and Prominent Backers
Norrsken22 initiated its venture in January 2022 and achieved its first closing at $110 million. This significant endeavor has garnered support from influential Swedish figures, including Niklas Zennström, co-founder of Skype; Jacob de Geer, co-founder of iZettle; and Niklas Östberg, co-founder of Delivery Hero, all of whom are limited partners in the Norrsken22 African Tech Growth Fund.
Olugbenga Agboola, co-founder and CEO of Flutterwave, also joined as an investor in this tech growth fund. Notably, approximately 59% of the funding was sourced from a consortium comprising 30 unicorn founders from around the world.
Institutional Investors
In addition to individual backers, institutional investors have shown a strong interest in the Norrsken22 fund. These include Standard Bank Group Ltd., Norfund, British International Investment, the International Finance Corporation, and the US International Development Finance Corporation, showcasing the global appeal and significance of the fund’s mission.
African Venture Capital Landscape
Recent data from the funding tracker “Africa: The Big Deal” reveals that African-focused venture capital firms announced deals worth $144.3 million in October, excluding grants. However, when examining the broader picture, it becomes apparent that growth-stage investments in African startups have faced a decline in 2023. Only 26 Series A and onwards deals have been publicly disclosed this year, in stark contrast to the 69 deals recorded in the same category in 2022 and the 76 deals in 2021.
Historically, large deals from African Series A and onward firms played a pivotal role in the landscape of venture capital investments, driving both investments and valuations upward rapidly. Yet, the current scenario differs significantly. As one seed-stage venture capital investor noted, “We used to markup valuations almost every quarter.”
Addressing the Capital Gap
While seed-stage venture capital firms have successfully attracted substantial investments from local and international limited partners to support early-stage startups, the availability of dedicated growth-stage capital in Africa has remained limited. Norrsken22 stands out as one of the few funds dedicated to backing African startups in their growth-stage. Additionally, Norrsken22’s sister asset manager, Africa Seed Fund, is currently in discussions to raise additional capital, aiming to support early-stage companies and address the entire spectrum of startup needs.
TL;DR
- Norrsken22, a venture capital firm focused on Africa, has raised $205 million to support growth-stage startups.
- Notable backers include Skype co-founder Niklas Zennström, iZettle co-founder Jacob de Geer, and others, with 59% of funding from unicorn founders globally.
- Institutional investors include Standard Bank Group Ltd., Norfund, British International Investment, the International Finance Corporation, and the US International Development Finance Corporation.
- African-focused venture capital deals in October reached $144.3 million, but growth-stage investments have declined in 2023, with only 26 disclosed Series A and onwards deals.
- The African venture capital landscape has shifted from frequent valuation increases to a slower pace.
- While seed-stage capital is readily available, growth-stage capital remains scarce, making Norrsken22’s focus on supporting African startups in their growth stage significant.
Hi, I’m Oren, founder at BIGINTRO, a content strategy agency that helps B2B companies drive growth. We develop search, social, PR, and content marketing strategies tailored to business goals. I also have a dog named Milo.