Norrsken22 raises $205 million to back African fintech and edtech startups

Pan-African venture capital firm, Norrsken22 today announced the final close of its first fund at $205 million. According to a statement seen by Bendada.com, the fund will focus on growth-stage entrepreneurs developing fintech, edtech, and healthtech across Africa.

With a ticket size of about $10 million to $16 million, Norrsken22 plans to invest in 20 startups on the continent. "There are huge opportunities in Africa. We are excited to continue our mission of driving funding into African tech, and creating jobs and sustainable growth in the region," Niklas Adalberth, Founder of Norrsken Foundation, said.

The $205 million fund, dubbed the Norrsken22 African Tech Growth Fund, was supported by over 30 local and foreign unicorn founders, including Olugbenga Agboola, co-founder and CEO of Flutterwave, Niklas Zennström, co-founder Skype, Jacob de Geer, co-founder iZettle, Niklas Östberg, co-founder Delivery Hero, Carl Manneh, co-founder Mojang, Sebastian Knutsson, co-founder King and Willard Ahdritz, founder Kobalt Music. The fund was also backed by SEB Pension Foundation and family offices.

"The timing of the fund ideally positions Norrsken22 to support a growing African tech tailwind," says Natalie Kolbe, Managing Partner of Norrsken22. "The transformative power of technology can leapfrog traditional ways of doing business, and Africa has the opportunity to lead the World with its solutions."

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Compared to last year, VC funding has declined in Africa. For instance, VC investments in the African tech ecosystem declined 48% in the first half of 2023, according to BD Funding Tracker.

"We are excited to be partnering with so many promising startups that can have a positive impact across Africa. We are delighted to see an active and growing early-stage investor community growing across the continent, however, we still see a gap at growth stage tech funding in the continent," Kolbe said.

Norrsken22 has already made five investments. The portfolio includes South African challenger bank Tyme Bank, African business-to-business digital commerce platform Sabi, Africa’s leading identity verification solution, Smile ID and auto financing platform Autochek.

Norrsken22 was formed in 2022 by Niklas Adalberth (Founder of the Norrsken Foundation and payments unicorn, Klarna) and Hans Otterling, Partner of technology investment firm Northzone, and an investing team that has decades of experience investing on the African continent. The firm currently has on-ground operations in Nigeria, South Africa, Kenya and Ghana.

According to Adalberth, "There are huge opportunities in Africa. We are excited to continue our mission of driving funding into African tech, and creating jobs and sustainable growth in the region."

Related Article: The Investors' Corner — Lexi Novitske, General Partner at Norrsken22