Norrsken22, an Africa-focused Venture Capital firm, has successfully closed its funding round at $205 million, surpassing its initial target by $5 million. This marks a promising development for growth-stage investments on the continent.
The fund, was established in January 2022 by founding partners Niklas Adalberth and Hans Otterling, managing partner Natalie Kolbe, and general partners Ngetha Waithaka and Lexi Novitske. The fund achieved the first close at $110 million, with a substantial 59% of the funding coming from a consortium of over 30 unicorn founders, including notable names like Flutterwave CEO, Olugbenga Agboola; Skype co-founder, Niklas Zennström; and Delivery Hero co-founder, Niklas Östberg.
Norrsken22’s aim is to support the growth of tech startups, focusing on key sectors such as fintech, edtech, and medtech. These investments are mainly directed towards startups in South Africa, Nigeria, Ghana, Kenya, and Egypt. The firm recognizes the increasing potential for technology businesses in Africa, driven by investment in digital infrastructure, expanding smartphone usage, urbanization, and the growing demand for financial and healthcare services.
Notably, the African startup ecosystem has been facing a slowdown in funding this year, with venture capital activity dropping compared to previous years. This slowdown was also felt by Norrsken22, causing a year’s delay in achieving its final close. Nevertheless, the oversubscribed fund highlights renewed interest from investors in supporting African startups, despite the challenges posed by the current investment landscape.
Norrsken22’s success in raising funds demonstrates continued confidence in Africa’s growth potential, especially from prominent institutional investors like Standard Bank, Norfund, and British International Investment. This investment fervor aligns with Africa’s need for increased access to capital to drive innovation and entrepreneurship on the continent.
As the African tech ecosystem continues to evolve, Norrsken22’s growth fund aims to fill the gap in growth-stage funding and offer substantial support to startups ready to scale. With their diverse portfolio, they anticipate a positive impact on Africa’s tech landscape by partnering with promising startups and helping them realize their growth potential.
This achievement showcases the growing commitment to investing in African startups at a crucial phase in their journey, further contributing to the continent’s dynamic tech revolution. With this funding, it is expected that more innovative solutions and tech giants will emerge from the African tech scene, further cementing the continent’s position on the global tech stage.
Speaking on the funding, Norrsken 22 Managing Partner, Natalie Kolbe, said:
“We are excited to be partnering with so many promising startups that can have a positive impact across Africa. We are delighted to see an active and growing early-stage investor community growing across the continent, however, we still see a gap at growth-stage tech funding on the continent. We see a huge opportunity here, and are excited to continue investing at this stage.”
The success of Norrsken22 is a testament to the resilience and determination of the African tech ecosystem, which remains a fertile ground for entrepreneurship and innovation, despite the challenges of the investment landscape. It sends a strong message that Africa’s tech revolution is far from slowing down.