Investor Insights: Nigerian Media Company Raises $2.3M for Expansion

Nigeria-based Big Cabal Media secures $2.3m seed for expansion

Highlights

• Big Cabal Media, the Nigerian parent company of leading digital media publications TechCabal and Zikoko, has raised $2.3 million in seed funding for expansion.
• The new funding brings BCM’s total funding secured to over $2.9 million after the startup raised $620,000 in angel and pre-seed rounds between 2016 and 2020.
• With the new funding, the company plans to develop new digital products, expand its staff, and reach more audiences.

Source: TechCabal

Our Takeaway

Global investments in digital media have been on a decline over the years. From $1 billion in the mid-2010s, only $115 million was invested in digital media startups in the US last year. In Africa, BCM is currently the most funded player in the technology-focused digital media space at almost $3 million. In all, quite a few media startups have raised publicly disclosed venture capital funding. These include Nigeria-based Stears, which raised $600,000 seed in 2020 and Kenya’s WeeTracker which secured $400,000 seed in the same year.

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Egyptian fitness app Welnes raises $300,000 seed round

Highlights

• Egypt-based fitness app Welnes, has closed a $300,000 Seed round led by Flat6labs with participation from Samurai Incubate, UI Investments, and a group of angel investors. 
• Launched in 2020 by Amr Saleh and Amr Diab, Welnes provides its users with customized nutrition and workout plans.
• The funds from this round will be spent on expanding the team and preparing the company for expansion across the countries in the Gulf Cooperation Council (GCC) region by 2023.

Source: Wamda

Our Takeaway

Tech-enabled fitness and nutrition services, while widespread in advanced economies, are very much nascent in the African continent. Internet coverage and smartphone penetration remain at subdued levels while African consumers are only beginning to embrace digital norms seen in developed economies. But Welness’ traction and backing by investors suggest a shift in culture. To date, the startup has helped over 15,000 users who have uploaded an impressive 500,000 meal pictures and made over 5,000,000 likes.

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European accelerator makes first closing on Africa-dedicated fund

Highlights

• European startup accelerator and investment fund Startup Wise Guys has completed the first closing on its new $9.3 million Africa-focused fund while also announcing the first batch of startups selected for its African B2B digital SaaS accelerator program. 
• Founded in Tallinn, Estonia in 2012, Startup Wise Guys manages SaaS accelerator programs out of Milan as well as cybersecurity programs from Cosenza. 
• The company has so far worked with more than 500 founders, made more than 235 startup investments, seen five exits, and achieved an overall startup survival and success rate above 77%. 

Source: Disrupt Africa

Our Takeaway

African startups raised between $4 billion to $5 billion in 2021, according to various reports, with foreign venture capitalists accounting for the bulk of that funding. As more outside investors pay attention to Africa’s tech startup landscape, Startup Wise Guys expanded to the continent in 2021 and held its first program in Namibia. The company has now announced the first closing of its $9.3 million fund, called Wise Guys Africa Fund I, through which it will invest in a minimum of 30 African startups this year and the next.