Emerging and Growth Markets | March 28, 2023

Factor[e] Ventures’ Delta40 scores early funding to build tech sectors in Africa

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, March 28 – Investment is growing in tech sectors critical for Africa’s sustainable—and climate-resilient—development. But clean tech, agtech and mobility tech together still represent just 23% of venture capital in Africa.

“There is a great opportunity at the formation stage to support local and diverse founders as they connect their technologies and markets,” said Morgan DeFoort of hardware-focused Factor[e] Ventures.

The VC firm launched Delta40 to back Africa’s home-grown but underinvested solutions and entrepreneurs. The venture builder and early-stage investor has support from Autodesk Foundation, the Global Energy Alliance for People and Planet and others. 

Delta40s is led by Lyndsay Holley Handler, who headed the clean energy company Fenix International.

First cohort

The venture builder’s first cohort of six undisclosed startups is focused on Africa’s climate resilience and population growth. It’s applying a gender-lens to give female founders a boost. Startups led or co-led by women raised just 13% of VC funding in Africa last year.

Delta40 will make early investments of $100,000 to $600,000, TechCabal reports.

Track record

Factor[e] has invested in more than 30 emerging markets tech startups, including agri-fintech company Apollo Agriculture in Kenya, waste-to-fuel venture Sistema Bio in Mexico, e-mobility manufacturer Ampersand in Rwanda, and off-grid solar provider Zola Electric.