Lagos based fintech startup, Carbon (formerly Paylater) has announced $100,000 funds for African entrepreneurs.
The company said the Carbon Disrupt Fund was set up to address the lack of funding and support holding back budding tech entrepreneurs on the continent. It will invest up to $10,000 in exchange for a five percent (5%) equity in the startup.
You will agree that funding is one of the greatest challenges facing African entrepreneurs.
Additionally, startups will have access to Carbon’s API, and leverage Carbon’s growing customer base and innovative technology platform, to get to market faster. The funds will also provide mentorship, access to Carbon’s customers and payment platform, as well as office space in Carbon’s Lagos offices.
Carbon is now accepting applications from companies with operations in Uganda, Kenya, Nigeria, Ghana, Cote d’Ivoire, and Egypt. Startups looking to apply for the fund must have a functioning product, be in the post-revenue stage and looking to operate in multiple countries.
In 2019, according to a report, 50% fundraised in the continent are major in fintech startups. The Carbon Disrupt Fund will go different way targeting mainly insurance, health and education sectors. Other sectors that have not received much attention in terms of funding will be highly considered.
There are many excellent companies across the continent looking for the kind of scale Nigeria offers and we are excited to partner with them to provide the support and financial investment they need. We are equally excited to expand beyond Nigeria and Kenya by working with a new generation of innovators across the continent and sharing our experience to tackle common obstacles to growth.Chijioke Dozie, co-founder and CEO
The question now is that 5% equity on $10,000? Will this attract so many hungry for fund startups in Africa? We will give you more reports about this later.
Nevertheless, we hope to see more of this in the continent as many entrepreneurs are looking for this kind of opportunities.