Catalyst, an AfriLabs and ABAN platform has launched to increase funding for startups in Africa as well as support the startup ecosystem including hubs and angel network.
‘‘We have all recognized the need to increase early stage funding for our African founders. Catalyst not only does that, but it helps to structure the ecosystem, supports collaboration, and provides actionable insights into the early stage funding landscape, all the while strengthening our hubs and our angel networks. As the first Pan African program of this type, developed by Africans, for Africans, I believe that Catalyst will be a real game changer’’, said Rebecca Enochong- Board Chair of AfriLabs.
Catalyst is raising funds from various institutional partners to add to a pool. This pool serves as a matching fund to encourage investment in viable startups by verified angel investors. The first Catalyst co-investment fund will be available towards the end of 2019 with a funding partner which will be announced soon. Conversations with additional partners are ongoing.
Catalyst will operate as a co-investment fund that will match investments from qualifying angel investors into African growth-stage companies. The funds will be released after startups have received investments from Angel investors that are part of an ABAN angel network.
Startups will register on the Catalyst platform through AfriLabs member network.
According to Tomi Davies, President of ABAN, ABAN signed the MOU with AfriLabs at their Annual Gathering in Dar es Salam in 2018 and were excited about the opportunity for partnership between Angels and Hubs on the continent.
“Catalyst will facilitate the development of those relationships as the first initiative of what we expect to be a highly valuable and long lasting collaboration between AfriLabs and ABAN,” he said.