AI solutions in Africa are relatively low compared to the rapid adoption of blockchain technology. According to a 2017 report by Price Waterhouse Coopers, AI is projected to contribute $15.7 million to the global economy. This is despite the fact that the sector is dominated by foreign companies in Africa; however, countries across different regions have addressed this by setting up a blueprint to enable its adoption. To gear the continent forward, New York-based Venture platform operating in MENA and GCC, Modus, has announced the launch of its $75 million SDG-focused VC fund primarily for AI and Blockchain technology startups in Africa.
Led by two seasoned investors, with 6 years plus experience in the African startup ecosystem, General Partners: Vianney Mathonnet and Andre Jr. Ayottehave set up Modus Africa to contribute to the growth and development of the continent’s tech talent and early-stage impact-driven ventures. Aiming for its closure in the first quarter of 2023, the new fund will invest in 45 startups at the seed stage with a follow-on investment allocation, catalysing foreign investment into the continent.
“The launch of Modus Africa comes as venture investments in the continent have been on the rise. Last year, Africa observed a 250% YoY growth in funding, surpassing capital deployed in MENA for the year,” a statement by the company reads.
Leveraging Africa’s population of more than 200 million and its fast-growing tech-savvy population, the VC optimising solutions with its Venture Builder, Venture Capital and Corporate Innovation approach will not only accelerate the African 4th Industrial Revolution but also deliver strong financial returns coupled with immense impact on sustainable development.
With its wide range of established partnerships and investments with Web 3 institutions and governments, it will support startups in Africa by “merging traditional Web2 businesses with Web3 technologies.”
Modus Africa will allow local startups to scale in the MENA region, joining the VC’s branches established in the past 18 months in Abu Dhabi, Cairo, and most recently, Riyadh, supported by champion backers such as Mubadala’s Hub71, USAID, and several other leading institutions.
Commenting on the development, Managing Partner at Modus, Kareem Elsirafy said: “Modus is proud to be launching an Africa-MENA investment corridor to continue supporting and investing in emerging innovation ecosystems. The Modus platform is uniquely positioned to deliver impact and value to African communities through operational, institutional, and financial capital. We’re excited to have Vianney and Andre leading the way on this journey.”
Partner at Modus Africa, Andre Jr. Ayotte said, “We’re thrilled to be joining Modus to focus on investing in African companies who have an incredible opportunity to bet on the 4th Industrial Revolution. AI could add another $1.5T by 2030 to the African economy, with about 50% of Africa’s GDP and blockchain already demonstrating its capacity to increase financial inclusion while lowering the overall cost of doing business in Africa.”