Google announces Ksh.465M fund for young startups in Africa; here's how to apply

Launched last year as a $3 million (Ksh.350 million) fund targeting 50 early-stage, black-founded startups in the continent, the fund is part of Google’s racial equity commitments announced in 2020 amid heightened conversations on racial injustice.

Google says it has expanded the fund to $4 million (Ksh.465 million) this year and the class will accommodate 60 startups.

“Black-led tech startups face an unfair venture capital funding environment and that is why we are committed to helping them thrive, grow to be better and ensure the success of communities and economies in our region,” Google’s head of startup ecosystem for Sub-Saharan Africa Folarin Aiyegbusi said.

“The fund will provide cash awards and hands-on support to 60 Black-led startups in Africa, which we hope will aid in developing affordable solutions to fundamental challenges affecting those at the base of the socio-economic pyramid in Africa.”

Kenya is among the 13 prime-focus countries the fund targets due to its active tech and startup ecosystem, alongside South Africa, Nigeria, Ghana, Tanzania, Uganda, Ethiopia, Botswana, Cameroon, Ivory Coast, Rwanda, Senegal and Zimbabwe.

Selected startups will get non-dilutive grants of between Ksh5.8 million ($50,000) and Ksh.11.6 million ($100,000).

At the same time, Google will also give up to Ksh.23.2 million ($200,000) per startup in Google Cloud credits, Google Ad Grants, as well as training and mentorship support from the company’s veterans.

Applicants must have an early-stage start-up with black founders or diverse founding teams, and should be headquartered in Africa.

The start-ups should also benefit the African community, building technology solutions for Africa and the global market and should display the potential of creating jobs as well as exhibit growth potential.

Applications close on May 31, and the winners will be announced on July 29.

Last year’s cohort comprised eight Kenyan startups; Amitruck (logistics), Angaza Elimu (ed-tech), AquaRech (agri-tech), Finplus (fintech), MarketForce (retail-tech), Pezesha (fintech), Raise (fintech) and WorkPay (HR).

Kenya has lately been positioning itself as a regional technology hub and a destination for multinational tech giants as well as global venture capital firms who are pouring millions into local startups.

Google recently became the third company to set up a hub in Nairobi within the past three months, after global digital payments giant Visa and American tech powerhouse Microsoft.

Additionally, the Kenyan startup ecosystem was recently ranked 2nd in Africa in terms of the total funding secured since 2019.

With over Ksh.22 billion ($1.9 billion) capital raised from global investors in the past three years, Kenyan startups accounted for 19 percent of the funding investors channeled to the continent.