Nigerian startups-Max.ng and Releaf Group have secured $100,000 funding each from Harambe Entrepreneur Alliance to help them through the economic downturns caused by the pandemic.
The money received by Max.ng and Releaf Group from Harambe Entrepreneur is part of the $1 million raised from Cisco Systems Inc. and a foundation of South African businessman Jonathan Oppenheimer.
The fund will be used to support African technology startups and help kick-start the return of venture capital to the continent following the coronavirus outbreak.
Max.ng is an on-demand motorcycle startup that recently pivoted into delivery due to the ban on motorcycles popularly called Okada in Lagos while Releaf Group is a platform for sorting and distributing farm products.
Speaking to Bloomberg, Okendo Lewis-Gayle who founded Harambe in 2008 said: “The capital markets have frozen up. We are hoping to create a domino effect in terms of investment in African startups.”
Based in the U.S., Harambe has raised more than $500 million from prominent families, individuals and international companies to support African entrepreneurs. Its list of past investors has included Mark Zuckerberg, Jack Ma, and Bill Gates.
Venture capital across the world has been drying up, with deals down 23% during the first quarter of the year compared with 2019, according to Preqin Ltd., as investors and funds take a more cautious approach amid the pandemic.
Africa is no exception, despite being less affected by the virus than Europe and North America. About half of Harambe’s companies expect the financial impact to become critical in the next three months, Lewis-Gayle said.
“We are expecting them to adapt,” he said. For example, Max “has decided to also include home-deliveries of goods as part of its service, and actually delivers for free to the elderly population.”
