The Norrsken Foundation has launched Norrsken22 Africa Tech Growth Fund, which has held its first close at $110 million. The fund is dedicated to delivering top quartile returns, and will drive strong, positive impact across Africa.
The Norrsken Foundation, founded by Klarna co-founder Niklas Adalberth, has partnered with investment teams from across Africa including Actis in South Africa and Acuity Venture Partners in Nigeria who will lead the fund’s investment strategy.
The fund, which is targeting total commitments of $200 million, is backed by 30 unicorn founders, contributing their skills along with $65 million in funding.
Among them are Olugbenga Agboola, co-founder 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 is also backed by SEB Pension Foundation and family offices, who share the Norrsken22 vision of scalable entrepreneurship as a driver of long-term and sustainable economic growth across Africa.
Norrsken22 will make 20 investments at an average ticket size of $10 million and may go as high as $16 million, including follow-on rounds in some portfolio companies. Its focus sectors include fintech, edtech, medtech and market-enabling solutions such as B2B marketplaces and inventory management businesses.
It further plans to invest 40% of its capital, about $80 million in Series A and B companies and the rest in follow-on rounds from Series C up until exit.
The fund is also supported by an advisory council of business leaders from across the continent, contributing local business knowledge as well as global perspectives: Nonkululeko Nyembezi, Chairman Johannesburg Stock Exchange (JSE), Arnold Ekpe, ex-Group Chief Executive, Ecobank, Phuthuma Nhleko, ex-Chief Executive, MTN and Shingai Mutasa, Founder and CEO, Masawara Plc.
Adalberth said that Africa’s young population made it a prime location for fast growth tech.
“Africa has a population of 1.2billion, where 60% are below 25 years old,” he said. “In the next decade, this young, digital-first generation will change not only the future of Africa but of the world.
“Eyes are turning towards Africa as the next epicentre for digital disruption. Technology is enabling emerging enterprises to leapfrog legacy ways of doing business.”
