Investor Update: Egyptian cloud security startup Magalix acquired

Egyptian cloud security startup Magalix acquired

Highlights

• Magalix, an Egyptian-American cloud security startup has been acquired by Weaveworks Limited, a GitOps company with headquarters in London and San Francisco.
• Founded in 2017 by Ahmed F. Mohamed and Ahmed Badran, and headquartered in the US with its R&D engineering team in Egypt, Magalix built a platform that enables organizations to embed security and compliance using DevOps methodologies. 
• Security and compliance policies are “codified” and built into the system according to company and sector-mandated “playbooks” and “recipes”. Magalix has completed multiple rounds of investments, totaling $4.2 million, with its Egyptian investors including Endure Capital and Egypt Ventures. 

Source: Disrupt Africa

Our Takeaway

Africa’s tech ecosystem has over the years attracted a lot of venture capital but failed to produce a lot of exits to justify the funding. However, mergers and acquisitions involving African startups have become prominent over the past year. More so, these exit and buyouts trend is spread across the continent, with a number of acquisition deals reported outside leading tech hubs such as South Africa, Kenya, and Nigeria. The recent surge in M&A activity in different parts of the continent is an indication of a maturing ecosystem.

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Nestcoin raises $6.5m to deepen crypto, Web3 adoption in Africa

Highlights

• Nestcoin, a Nigeria-based startup building, operating, and investing in web3 applications, has raised $6.45 million pre-seed to expand its operations and invest in more products.
• Co-founded by Yele Bademosi and Taiwo Orilogbon, Nestcoin aims to democratize access to economic opportunities presented by crypto and web3, making it simple and accessible to everyday people.
• In 2021, the company launched Breach, its media arm created to advance crypto education globally, and Metaverse Magna (MVM), a crypto gaming guild that helps users earn up to $1,000 monthly. Nestcoin also has several other products in the pipeline, designed to provide compelling use cases for crypto.

Source: TechCabal

Our Takeaway 

According to Chainalysis, the value of Africa’s cryptocurrency market rose to $105.6 billion between July 2020 and June 2021, a 1,200% surge, despite repeated efforts by governments on the continent to stifle adoption. Considering the prevailing unfavourable macroeconomic conditions in most African countries that have so far propelled adoption by Africans still persist—including weak currencies, high unemployment rates, and low-income levels—we anticipate stronger crypto uptake and growth going forward. 

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AltSchool gets $1m to train new tech talent in Africa

Highlights

• AltSchool, an online institution that wants to help Africans acquire valuable tech skills such as software engineering and get tech jobs within a year, has raised $1 million in pre-seed funding to scale its efforts.
• The funding round has Nigerian entertainer, Folarin Falana (Falz); Flutterwave Founder, Olugbenga GB Agboola; Paystack Founder Shola Akinlade; Nigerian musician and rapper, Akitoye Balogun (Ajebutter); Pledges, Nestcoin, and ODBA VC, as investors. 
• Launched in October 2021, AltSchool has since recorded over 8,000 enrollments from over 20 countries, including Nigeria, Ghana, Uganda, and Botswana.

Source: TechPoint Africa

Our Takeaway

In Africa, the dearth of talent for digital roles has resulted in a war that sees big companies able to offer fat paychecks poach prized human assets from smaller counterparts. The shortage of tech talent is not a new problem and may not be resolved anytime soon with the demand for software engineers expected to grow as the technology industry grows. Efforts are needed to plug this gap, and players like AltSchool Africa are pivotal to expanding the continent’s tech talent pool.