Delta40, an Africa-focused venture firm, has raised $20 million to scale a model that combines a venture studio and a venture fund, bringing company building and early-stage capital under one structure. The raise drew 54 investors across 13 countries, including 25 founders. Backers include the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, the Rockefeller Foundation, Allan & Gill Gray Philanthropies, Livelihood Impact Fund, Small Foundation, Lemelson Foundation, Factor(E) Ventures, Skoll Foundation, and global law firm Wilson Sonsini. In a press statement seen by Condia, Lyndsay Holley Handler, the founder and CEO of Delta40, stated: “What sets this model apart is our community of innovators, investors, and business leaders who provide hands-on support from idea to pan-African scale and impactful exits. Over 75% of our investors and team have built ventures in Africa, bringing deep experience, networks, and lessons from successful exits across the continent and beyond.” Launched by Factor(E) Ventures in 2023, Delta40 operates a venture studio based in Kenya with operations in Nigeria. The firm invests between $100,000 and $500,000 in startups across energy, agriculture, and fintech. Beyond writing checks, it works alongside founders on product testing, technology partnerships, early commercialisation, fundraising, and strategy, often acting as a co-founder at the earliest stages. The model targets structural gaps in Africa’s startup ecosystem, where founders often lack access to both early capital and operational support. “As an investor and operator, I’ve seen how difficult it is for founders to access both bold capital and hands-on support. Delta40 delivers both—and that’s why I’m confident that future funds will only accelerate the momentum we’re already seeing,” said Biola Alabi, Partner, Investments at Delta40, in the press statement. Delta40 has invested in and supported 16 companies, including five built within its studio. It reports a 5.5x leverage on deployed capital. Its portfolio includes Lori Systems, a pan-African logistics platform, which was ranked as the seventh fastest-growing company in Africa by the Financial Times and has received investment from Google. Venture studios remain limited across the continent compared to traditional venture capital firms. Unlike VC funds that invest in existing startups, studios typically originate ideas, build companies internally, and later install CEOs while retaining board roles. A Briter analysis estimates about 50 active venture studios in Africa, with Nigeria hosting 11. Other operators, such as Founders Factory Africa and Savannah Fund, have also adopted variations of the studio-backed model with institutional support.
