Baobab Network, a leading pan-African venture capital firm and startup accelerator, has unveiled an ambitious plan to invest in 1,000 tech startups across Africa over the next 10 years.

The Nairobi-based firm aims to deploy over $100 million in funding to fuel innovation and support entrepreneurship across the continent. This bold vision comes as global VC heavyweight Y Combinator scales back its Africa operations, creating a strategic opportunity for Baobab to cement itself as a dominant early-stage investor in the region.

Over $50M Deployed Since 2019

Founded in 2016 by Toby Hanington and Tom Fairburn, Baobab Network has been one of Africa's most active pre-seed and seed-stage investors. The firm runs a highly competitive 12-week accelerator program, providing each startup with $100,000 in funding, intensive mentoring and access to its broad network of partners.

Since launching the accelerator in 2019, Baobab has already backed over 45 companies across 15 African countries. The agritech startup Lentera and the digital freight forwarder Tripitaca, both of which were successful exits from its portfolio, were both purchased by Global Shipping Business Network.

To date, the firm has deployed over $50 million into Africa's tech ecosystem. But it's just getting started, with its new commitment to scale up its investing activity exponentially over the next decade.

Stepping In As YC Steps Back

Baobab's declaration comes on the heels of Y Combinator announcing its partial retreat from Africa.

While YC's exit created a gap in early-stage funding options, Baobab saw it as a strategic opportunity. With its extensive experience investing in African startups and running accelerator programs locally, it is well-positioned to drive more capital to promising ventures across the continent.

$100K Funding Pool Boosts Recent Cohort

Baobab Network's cohort showcases the diversity and depth of African entrepreneurship.

Each company received $50,000 directly from Baobab, plus access to an additional $50,000 via the firm's new co-investment vehicle. This $100K funding pool offers a vital boost for early-stage ventures facing a cooling investment climate.

While Africa has not been immune to global funding headwinds, Baobab has remained active. It has already closed 10 deals this year, with more in the pipeline for Q4 2023.

Appointment of Niama El Bassunie Accelerates Growth

To help achieve its goal of investing in 1,000 startups, Baobab Network has expanded its team. It recently appointed Niama El Bassunie as Managing Partner, leveraging her experience as a Y Combinator alumnus and one of Africa's few female startup founders with a big exit.

El Bassunie co-founded WaystoCap, a B2B marketplace for Africa that raised over $11 million. Her hands-on expertise in scaling startups and raising venture funding will be an asset to Baobab.

With its expanded leadership, targeted co-investment vehicle and bold vision to catalyze 1,000 startups, Baobab Network is cementing its dominance in African tech. Despite turbulent times, its conviction highlights the immense growth potential of African innovation.