Microsoft announced intentions to support African startups with $500 million in investment funding in cooperation with venture capital investors on March 3, 2022, to help them quickly utilize the funds.
This investment, according to Microsoft, is part of its Africa Transformation Office’s new initiatives to accelerate the growth of 10,000 African startups over the next five years. To ensure ease in access to the $500 million cash, Microsoft intends to build industry alliances and cooperation with venture capital investors to enable easy access to the $500 million funding.
In addition to introducing the Microsoft Startups Founders Hub in Africa, Microsoft formed new collaborations with accelerators and incubators to assist startups with market access, technical expertise, and investment.
The Company will seek out partners with a worldwide reach and regional bases interested in one or more African areas. The funding will come from a network of venture capitalists who will contribute some funds to Microsoft-affiliated firms.
Must Read: Breaking: Microsoft Beats Profit Estimate
While speaking on the new investment, Gerald Maithya, Startups Lead, Microsoft Africa Transformation Office, stated:
“Our goal in establishing these partnerships with venture capital investors is to extend the network of potential partnerships between Microsoft, venture capital investors and startups, thereby increasing the funding available to eligible startups.”
Wael Elkabbany, Managing Director, Microsoft Africa Transformation Office, also stated: “Our ambition is to see an explosion of local invention,” “That will contribute positively, not just to Africa’s digital economy, but to global society.” “There is huge potential for Africa to become a thriving digital innovation hub on the global startup landscape.”
Must Read: Building A Successful SaaS Startup in Nigeria: Common Mistakes That Lead To Failure
It also announced partnerships with prominent venture capital firms such as Banque Misr, Global Venture Capital, and Get Funded Africa. With ambitions to expand this venture capital investor network over the next five years, it will provide more capital to startups, allowing them to grow and contribute to economic growth.
With the newly announced funding support to African Startups, Microsoft wants to collaborate with governmental and private organizations to empower Africans and generate economic development.