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Be Smart About South Africa

African Innovation is Attracting More Interest from Global Investors

As the most prominent startup accelerator in the world for the last two decades, Y Combinator influences how early-stage tech companies receive money from investors. After it announced a new standard deal two weeks ago—which will now offer startups $500,000 in two tranches instead of $125,000—investors in the US, and Europe have wondered what they would have to do to not be priced out of the most promising startups in their respective markets. Initial reactions reveal anxiety in those who think YC’s attempt at increasing its ownership in startups could work against those startups’ ability to raise funds from other willing investors. But investors in Africa seem to be optimistic about the challenge of showing their knowledge and willingness to back founders long term.

SOURCE: QUARTZ AFRICA

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