Microsoft has announced potential funding of $500 million in partnership with venture capitalists to support African startups. The instrument should make it possible to support 10,000 startups in Africa over the next five years.
The initiative is planned to launch alongside the Microsoft Startups Founders Hub on the continent, along with new partnerships with accelerators and incubators to provide startups with access to markets, technical skills and funding.
Priority will be given to startups with a global reach and regional bases or with an interest in one or more regions of Africa. These initiatives will be carried out through the recently established Africa Transformation Office (ATO). The ATO drives Microsoft’s strategic initiatives in Africa by partnering with public and private organizations.
The company has established partnerships with key venture capital investors including Banque Misr, Global Venture Capital and Get Funded Africa. Agreements that allow Microsoft to increase funding for startups and allow them to develop and stimulate economic growth.
“Our goal in establishing these partnerships with venture capitalists is to expand the network of potential partnerships between Microsoft, venture capitalists and startups, thereby increasing the funding available to eligible startups,” said said Gerald Maithya, Head of Startups, Microsoft Africa Transformation Office.
As part of the initiatives launched towards African startups, Google last year launched a $50 million Africa investment fund targeting early-stage and growth-stage startups on the continent, succeeding its program Google for Startups Accelerator Africa.