African startups backed by Google for Startups Black Founders Fund are making funding headway, collectively raising USD 266 M from venture capitalists (VCs) in the last three years. This positive trend is revealed in a new report by Google for Startups and VC firm Notion Capital, which analyses the initiatives impact across Africa and Europe.
The Black Founders Fund provides startups with a significant boost, offering USD 100 K in cash awards with no equity stake required. Additionally, each company receives up to USD 200 K in Google Cloud credits. This financial support is coupled with ongoing mentorship from Google experts, along with product support to help navigate the challenges of running a startup.
The Google for Startups Black Founders Fund was established in 2021 to support Black entrepreneurs and address the longstanding disparities they face in accessing capital and resources. Since then, Google said the Fund has supported 220 European and African companies, comprising 135 from Africa and 85 from Europe.
In 2022, the programs reach expanded in Africa. Out of the 60 African startups selected for the second cohort, 23 were from Nigeria, the continent's dominant tech market in recent years. These included promising startups such as Eden Life, Estate Intel, Healthtracka, Haul247, and Flexfinance.
However, the report also highlights persistent disparities in access to capital for Black founders.
