Norrsken22, a Pan-African venture capital firm, has successfully closed its debut fund at an impressive $205 million, surpassing its initial target. Founded by individuals with extensive venture capital and private equity experience, Norrsken22 focuses on supporting growth-stage startups across Africa. The fund’s achievement highlights a strong interest from institutional investors in bolstering African startups during a crucial phase of their development.
Key Points:
- Fundraising Success:
- Norrsken22 has exceeded expectations by closing its debut fund at $205 million, showcasing a significant appetite among institutional investors to back African startups.
- Founding Partners and Operations:
- The venture capital firm was established by seasoned professionals, including Niklas Adalberth, Hans Otterling, Natalie Kolbe, Ngetha Waithaka, and Lexi Novitske.
- Norrsken22 has operational teams in Nigeria, South Africa, Kenya, and Ghana, providing extensive coverage across key African markets.
- Investor Support:
- The fund received substantial support from a consortium of 30 unicorn founders globally, underscoring confidence in Norrsken22’s vision.
- Notable contributors include Flutterwave CEO Olugbenga Agboola, Skype co-founder Niklas Zennström, iZettle co-founder Jacob de Geer, and Delivery Hero co-founder Niklas Östberg.
- Investment Focus:
- Norrsken22 focuses on Series A and B investments, bridging the gap between early-stage and late-stage funding in Africa.
- The fund allocates approximately 50% of its capital for portfolio building, with the remainder reserved for follow-on investments, particularly in B and C rounds.
- Target Sectors:
- The firm concentrates on fintech, edtech, medtech (health tech), and market-enabling solutions that offer both strong returns and positive impacts across Africa.
- Portfolio Investments:
- Norrsken22 has already made strategic investments in companies like TymeBank, Sabi, Smile Identity, Autochek, and Shara, reflecting a diverse range of sectors and innovative solutions.
- Exit Strategy:
- The fund places a strong emphasis on preparing portfolio companies for exits, evaluating potential scenarios and identifying suitable buyers.
- Possible exit avenues include international strategic buyers, consolidation with local industry leaders, and acquisition by large multinational corporations seeking innovation.
Conclusion: Norrsken22’s successful fund close at $205 million is a testament to the growing support for African startups, particularly in the growth-stage phase. With an experienced team and strategic operations across key African markets, Norrsken22 is poised to play a vital role in propelling the continent’s tech ecosystem forward. This achievement not only highlights the potential within the African tech space but also signifies the enduring commitment of institutional investors to foster innovation and entrepreneurship in the region.
