The landscape of startup accelerators in Africa is evolving rapidly, with a shift in focus from global giants like Y Combinator to local players stepping up to fill the gap. Y Combinator, known for its prestigious accelerator program that has helped launch successful startups worldwide, has shifted its attention to big problems in areas like manufacturing, defense, and climate, reducing its focus on developing markets like Africa.
In response to this changing dynamic, a new wave of accelerators is emerging in Africa, backed by local players and aimed at nurturing and supporting startups on the continent. These accelerators are stepping in at a critical time when foreign investors are pulling back, forcing local players to rethink their strategies for supporting and funding startups.
One such initiative is Accelerate Africa, launched by Iyinoluwa Aboyeji, a co-founder of Flutterwave and a pioneer in the African tech ecosystem. With a portfolio of 20 startups already, Accelerate Africa aims to become ‘The YC of Africa,’ providing a platform for African startups to thrive and connect with local partners and investors.
The decline in foreign funding for African startups has prompted a shift towards prioritizing local capital, partners, and public markets. Aboyeji believes that building a strong local capital base is crucial for the future of African startups, and Accelerate Africa is working to forge partnerships with local corporations and investors to support its portfolio companies.
While there are large Africa-focused funds like Partech Africa and Norrsken22, more needs to be done to deploy this capital effectively and support early-stage startups. Building stronger companies at the early stage will pave the way for more successful exits and IPOs on local African markets.
Overall, the evolving landscape of startup accelerators in Africa signals a shift towards greater local involvement and support for African startups. With initiatives like Accelerate Africa leading the way, the future looks bright for the next generation of African entrepreneurs and innovators. There’s a growing presence of AI in Africa, with startups in the continent beginning to explore the potential of artificial intelligence. While generative AI is currently a hot trend in the tech industry globally, African startups have been slow to embrace this technology compared to their counterparts in North America and Europe. However, there are efforts being made to change this narrative.
One such initiative is Accelerate Africa, an accelerator program based in Nigeria aiming to support AI startups in the region. One of the startups in its portfolio, CDIAL.AI, is developing a conversational AI that can understand and speak African languages fluently, representing a unique contribution to the global AI landscape from Africa.
Another player in the African AI scene is GoTime AI, a Lagos-based accelerator founded by Olugbenga Agboola, the co-founder of Flutterwave. The accelerator, which is part of the early-stage venture capital firm Resilience17, is focused on supporting founders building AI products in Africa. With a cohort of five startups, GoTime AI aims to provide mentorship, workspace, and funding to help these startups thrive in the AI space.
Hasan Luongo, a general partner at Resilience17, believes that Africa has the potential to offer AI products at a lower cost than Western markets, making them attractive to potential acquirers. By investing in African AI startups, there is an opportunity to tap into talent that is on par with global standards while benefiting from lower operational costs.
Unlike traditional accelerators like Y Combinator, GoTime AI and Accelerate Africa are taking a different approach to supporting AI startups. While GoTime AI offers funding of up to $200,000 in exchange for equity, Accelerate Africa does not provide upfront funding but focuses on building a strong community and providing access to resources for its startups. Both accelerators are looking to expand their programs across Africa and support more startups in the AI space.
Overall, the emergence of AI in Africa presents a unique opportunity for the continent to make its mark in the global tech industry. With initiatives like Accelerate Africa and GoTime AI leading the way, African AI startups are poised to make significant strides in the AI landscape.
