Search giant and ad corporation Google has announced that 60 eligible black-founded startups across Africa have been selected for the second cohort of Google for Startups Black Founders Fund (BFF) for Africa.
The startups joining the program will receive a total of KES 479.2 million(USD 4million) in funding and support to enable them to scale up their ongoing work.
Each of the selected startups will receive support in the form of a 6-month training program that includes access to a network of mentors to assist in tackling challenges that are unique to them.
They will also be part of tailored workshops, support networks, and community-building sessions.
The 60 grantees will also get non-dilutive awards of between KES 6 million (USD 50,000) and KES 12 million (USD 100,000) and up to KES 24 million (USD 200,000) in Google Cloud credit.
The grantees, made up of 50% women-led businesses, hail from Botswana, Cameroon, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Senegal, South Africa, and Uganda.
They specialize in sectors such as fintech, healthcare, e-commerce, logistics, agtech, education, hospitality and smart cities.
The top five countries with the most startups selected for the program are Nigeria with twenty-three grantees, Kenya with twelve grantees, including Ajua, BuuPass, DohYangu, FlexPay, Keep IT Cool, and Leja, Rwanda with six grantees, South Africa with five grantees, and Uganda with four grantees.
Botswana and Senegal have one selected startup each, Cameroon and Ghana both have three grantees each while Ethiopia has two selected grantees.
“Africa is a diverse continent with massive opportunity but the continent is faced with the challenge of limited diversity in venture capital funding flow. We hope that the Black Founders Fund program will be able to bridge the gap of disproportionate funding between expat startups over local and black-led companies.”, says Folarin Aiyegbusi, Head of Startup Ecosystem, SSA.
Launched in April 2012, the Google for Startups program has created over 4,600 jobs and raised more than $290M in funding.
The Google for Startups Black Founders Fund program will introduce the grantees in Africa to Google’s products, connections, and best practices which will help the founders to level the playing field as they build better products and services that add value to the African economy.
Funding for the Google for Startup Black Founders Fund will be distributed through Google’s implementation partner, CcHUB. “The equity-free cash assistance to startups will enable them to take care of immediate needs such as paying staff, funding inventory, and maintaining software licenses. This is to help the grantees buffer the cost of taking on debt in the early stages of their business as many of them do not have steady revenue streams yet,” Aiyegbusi concludes.
The Google for Startups Black Founders Fund for Africa program reinforces Google’s commitment to empowering entrepreneurs and startups in the region as a vital prerequisite to driving employment and growth on the continent.