> The fund targets expansion in digital payments and neobanks, especially in Francophone West Africa.
In the first quarter of this year alone, substantial investments were made due to stronger performance metrics compared to other markets.
This trend counters last year’s 31% drop in venture capital to $4.5 billion, as reported by the African Private Capital Association. The decline was linked to economic challenges such as high inflation and currency devaluation across African nations.
Novitske is optimistic about the recovery of investment levels, anticipating more thorough due diligence and operational involvement from investors. This shift aims to ensure more sustainable investment strategies compared to the rapid, pandemic-driven influx in 2021 and 2022.
So far, Norrsken22 has invested in six companies, including South Africa’s Tyme Group. Plans are underway to expand their portfolio to 20 firms by 2025. Founded in 2022, the fund is a collaboration between Hans Otterling of Northzone Ventures and Niklas Adalberth’s Norrsken Foundation. It supports enterprises offering “lean-tech solutions” like software and AI, with backing from unicorn founders.
Investments span across South Africa, Nigeria, Kenya, and Egypt, focusing on burgeoning sectors like digital payments and neobanks, particularly in Francophone West Africa, anticipating regulatory changes to spur digital adoption.