Google has commenced its Black Founders Fund for Africa 2023. The United States technology company is offering $100,000 to selected startups of the programme.
The search engine giant created the Black Founders Fund for Africa to expand access to capital for African founders who are largely ignored in the global investment pool.
According to Google, less than 0.5 per cent of global venture capital (VC) funding went to Black-led startups in 2020, reflecting the poor financial backing they receive.
To increase available funding for African startup founders, Google has disbursed $20 million to black founders across the US, Europe, Africa, and Brazil.
It was gathered that the latest funding for African startups is valued at up to $4 million that would be shared among 60 founders on the continent.
“If we want technology to work for everyone, it needs to be built by everyone. Black founders in Africa disproportionately lack access to the networks and capital needed to grow their businesses.
“In 2020, with less than 0.5% of global venture capital (VC) funding going to Black-led startups, Google announced the Black Founders Fund and has since deployed $20M in funding to founders across the US, Europe, Africa, and Brazil,” Google wrote in a statement on its website.
Google also stated: “The latest $4M Black Founders Fund in Africa provides 60 founders with up to $100K in capital, up to an additional $200K in Google Cloud Credits, and access to the best of Google—people, products, and practices.”
Prime Business Africa understands that the $100,000 funding will not dilute the shares of the startups, which means it will be equity-free.
“Up to $100K in equity-free cash will be awarded to each startup,” Google said, adding that, “We connect founders with the very best of Google’s people, products, and practices.”
The firm said another benefit of the programme is “At its core, the Black Founders Fund is a global initiative. Selected founders have the opportunity to connect with founders from all over the world.”
Nigerian startup founders that have benefited from the Google Black Founders Fund are; Tunji Andrews, founder of Awabah, Bookings Africa by Fade Ogunro, Jennie Nwokoyi of Clafiya and many more.