Black Founders Fund fuels $379m for African startups
Onome Amuge
The Black Founders Fund (BFF) has proven to be an essential catalyst for sustainable innovation and inclusive growth. The startups supported by the BFF have collectively raised $379 million, created over 6,000 jobs, and experienced 61 percent faster growth than their peers, demonstrating the importance of strategic investment in nurturing diverse founders and fostering sustainable innovation.
The remarkable progress and achievements of BFF-backed startups were recently unveiled at the Black Founders Fund Alumni Summit held at iHub in Nairobi. The BFF Impact Report, presented at the event, highlighted the transformative impact of strategic investment in African Black-led startups
The annual event brought together 45-50 alumni from across the continent including Kenya, Nigeria, South Africa, Uganda to celebrate their achievements and discuss the future of Africa’s digital economy, with a spotlight on the role of these startups in driving innovation, job creation, and scalable business growth.
The BFF Impact Report offers a comprehensive look at the remarkable impact that targeted support for Black entrepreneurs has had on the African tech ecosystem.
Through non-dilutive funding, mentorship, and networking, the Black Founders Fund has empowered entrepreneurs to overcome barriers, scale their businesses, and contribute to Africa’s digital transformation.
The BFF Impact Report also demonstrates the pivotal role of the programme in strengthening the continent’s startup ecosystem, enabling businesses to compete globally and attract significant investment.
Despite Africa’s growing recognition as a hub for innovation, the report showed that black entrepreneurs continue to face substantial barriers, with access to capital remaining a key challenge.
African startups raise less than one percent of global venture capital, and women-led and marginalised entrepreneurs are particularly underrepresented. Limited access to mentorship, networks, and markets exacerbates these difficulties, often hindering talented entrepreneurs from scaling their businesses.
However, initiatives like the Black Founders Fund are driving systemic change. Through non-dilutive funding, mentorship, and an expansive network, the BFF has empowered over 220 startups, enabling them to scale faster and break down these barriers.
According to the report, African fund recipient companies currently employ over 4,000 employees. This is an increase from the initial 1,050 in 2021, almost four times the growth since the fund commenced.
Also, backed by the Google for Startups Black Founders Fund have collectively raised $266m, following the initial investment of $100,000.
The report also showed that since 2000, $2.5 billion worth of investments has been made into black-led tech businesses in Africa and Europe, representing 0.51 percent of total investment made into all tech firms.
Other highlights from the BFF Impact Report showed that 50.4 percent of leadership roles in African BFF companies are held by women, with 68 percent of startups being women-led or having a female co-founder.
The report further highlighted that Kenya leads in follow-on funding with 26 BFF-supported startups cumulatively raising nearly $100 million, employing 1,073 people.
The BFF Impact Report also identified the diverse industries where BFF startups are making significant contributions, including Fintech, Healthtech, Agritech, and AI. By providing entrepreneurs with the resources and connections they need, the Black Founders Fund is helping to nurture the next generation of tech leaders who are shaping Africa’s digital future.
Olumide Balogun, country Director, West Africa, Google for Startups, remarked that the Black Founders Fund is not just about financial support, but also about creating an ecosystem of innovation, job creation, and opportunity.
“The BFF Impact Report reflects the incredible progress Black entrepreneurs have made, and how the right resources can empower them to lead Africa’s digital future. The impact we are seeing today will set the stage for an even more vibrant African tech landscape tomorrow,” Balogun stated.
Mariama Boumanjal, Black Founders Fund Manager Europe, Google for Startups, pointed out that the BFF Impact Report proves that with the right support, black founders can not only overcome these challenges, they can as well, lead the way in innovation, job creation, and economic development.
Folarin Aiyegbusi, head of startup ecosystem for Africa at Google,said, “This report is a celebration of the incredible work being done by Black founders across Africa. The BFF Impact Report proves that, when we invest in these entrepreneurs, we’re not only helping individual startups, but we’re driving systemic change within the broader African tech ecosystem.”
The Black Founders Fund Alumni Summit also featured discussions with key industry leaders, investors, and policymakers about the ongoing opportunities and challenges facing African tech startups. The event provided valuable networking and collaboration opportunities for attendees, helping to further build the connections that will drive future growth in the ecosystem.
The summit also included a gala dinner, highlighting the achievements of BFF alumni, and further strengthening the connections between investors, startups, and key ecosystem players.