Venture studio Delta40 raises $20 M funding to support innovative ventures across Africa

To support its integrated venture studio and fund, Delta40, a pan-African venture studio, has raised $20 million in funding.

In March 2023, media outlets covered the launch of Delta40, a new venture studio by VC firm Factor[e]Ventures that focuses on developing and funding technology ventures to address climate change and raise incomes in Africa.

Delta40 collaborates with African and female founders to develop and scale disruptive innovation to raise incomes and address climate change, while Factor[e]Ventures invests in and supports early-stage technology companies operating in emerging markets related to energy, agriculture, water, and mobility.

Diverse, seasoned founders drive Delta40’s technology-driven energy, agricultural, and mobility initiatives. Along with funding, Delta40 serves as a co-founder, offering quick, iterative product testing, technology brokering, early-stage commercialization, and collaborating to accelerate venture building.

Along with significant African participation and local champions, the US$20 million funding comes from institutional investors and partners such as the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, The Rockefeller Foundation, Allan & Gill Gray Philanthropies, Livelihood Impact Fund, Small Foundation, Lemelson Foundation, Factor(E) Ventures, and Skoll Foundation.

54 investors from 13 countries are represented in the venture studio, which has since grown to Lagos. These investors include foundations, high-net-worth individuals, family offices, development finance institutions (DFIs), and international institutions. It is noteworthy that 25 founders and investors from Silicon Valley and Africa are part of the raise, establishing an ecosystem of “founders backing founders.”

“Through Delta40, we’re building and scaling innovations that transform lives, economies, and planetary health across Africa – with solutions that can power and feed the world. What sets this model apart is our community of innovators, investors, and business leaders who provide hands-on support from idea to pan-African scale and impactful exits. Over 75 per cent of our investors and team have built ventures in Africa, bringing deep experience, networks, and lessons from successful exits across the continent and beyond,” said Lyndsay Holley Handler, founder and CEO at Delta40.

At the idea-to-seed stage, Delta40 makes initial investments between $100,000 and $500,000, with the possibility of subsequent investments. The team serves as a long-term extension of the startup team, providing financial modeling, strategy, exit opportunities, investor materials, and targeted introductions to help founders secure subsequent rounds. It also supports commercial growth and fundraising execution.

“Delta40 exemplifies the kind of bold, locally-led innovation that is essential to building inclusive economies and environmental resilience across Africa. At SEDF, we are proud to support visionary founders who are solving urgent challenges – and shaping a more just and sustainable future,” said Georgia Levenson Keohane, CEO of the Soros Economic Development Fund.