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Venture capital firm Norrsken22 has surpassed its initial target with the finalization of its debut fund at $205 million.
The success of Norrsken22 stresses growing investor interest in supporting African startups, particularly in the critical growth stage of their development.
Founded by a team with extensive experience in venture capital and private equity, including noteworthy individuals like Niklas Adalberth, Hans Otterling, Natalie Kolbe, Ngetha Waithaka, and Lexi Novitske, Norrsken22 has swiftly become a key player in the African investment terrain.
The firm, operating across Nigeria, South Africa, Kenya, and Ghana, managed to draw substantial interest, securing backing from unicorn founders and subsequently attracting institutional investors like British International Investment, International Finance Corporation, U.S. International Development Finance Corporation, Standard Bank, and Norfund.
Despite the challenges caused by the global tech investment slowdown, Norrsken22’s achievement is significant. The fund, focused on the African Tech Growth Fund, is set to bridge the gap in the investment cycle, particularly in the Series A and B stages, addressing the shortage of capital in Series A and beyond, setting aside funds for follow-on investments in B and C rounds.
The firm’s goal is to support startups in sectors like fintech, edtech, medtech, and market-enabling solutions that promise strong returns and a positive impact across the African continent.
With five key investments already made, including names like TymeBank, Sabi, Smile Identity, Autochek, and Shara, Norrsken22’s strategic approach involves nurturing companies looking to expand beyond borders and build Pan-African businesses.
What sets Norrsken22 apart is its proactive stance on preparing its portfolio companies for potential exits. The firm thoroughly evaluates exit scenarios, eyeing international strategic buyers, local industry leaders, and even multinational corporations in Africa seeking innovation through acquiring tech businesses.
With a focus on around 20 startups and an investment ticket averaging $10 million, Norrsken22’s success signifies a positive trend in the African tech investment space despite the current global investment climate. Its forward-looking strategy and experienced team will enable the company to strengthen its growth effort for African startups, offering not just financial backing but also essential networks and on-ground support.
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