In a landmark move for the African tech ecosystem, Delta40, a Nairobi and Lagos-based venture builder, has secured $20M in Africa’s first institutional venture studio fundraise to build and support innovative ventures across the continent.
This capital injection marks the debut of Africa’s first institutionalized venture studio and fund—a hybrid model designed to bridge the gap between early-stage ideation and pan-African scale. As the continent’s investment landscape shifts toward more sustainable and operator-led models, Delta40’s unique approach signals a new era for African entrepreneurship.
A “Founders Backing Founders” Ecosystem
The raise attracted a diverse coalition of 54 investors from 13 countries, bridging the gap between Silicon Valley and African tech hubs. The investor base includes global institutions, development finance institutions (DFIs), family offices, and foundations.
Notably, the fund is supported by 25 Founders and 14 African investors, creating a powerful cycle of local reinvestment. Several of these founders have committed their own capital to empower the next generation of African entrepreneurs.
“Through Delta40, we’re building and scaling innovations that transform lives, economies, and planetary health across Africa — with solutions that can power and feed the world. 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.” — Lyndsay Holley Handler, Founder & CEO, Delta40
Solving the Execution Gap
Delta40’s model is specifically designed to address the high failure rate of early-stage ventures in Africa, often caused by a lack of access to talent, technology, and specialized capital.
The venture studio provides:
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Early-Stage Capital: Initial checks ranging from $100,000 to $500,000 at the idea-to-Seed stage.
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Embedded Expertise: Direct support in product development, fundraising, legal, finance, and growth.
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Sector Focus: High-impact sectors including Energy & Mobility, Agriculture, and Fintech, with a cross-cutting goal to integrate AI across all ventures.
This hands-on approach is backed by data. Global benchmarks show that venture studios help startups raise capital 2x faster and reach exits 30% faster.
A Mission to Close the Funding Gap
Beyond financial returns, Delta40 is on a mission to reshape the demographics of African venture capital. Currently, less than 2% of funding goes to female founders and less than 30% to African-born founders. Delta40 was built to reverse these trends by backing diverse, locally-led teams that have historically generated outsized impact.
Institutional partners joining this mission include the Soros Economic Development Fund (SEDF), FMO, GIZ, and the Rockefeller Foundation.
“Delta40 exemplifies the kind of bold, locally-led innovation that is essential to building inclusive economies and environmental resilience across Africa. At SEDF, we are proud to support visionary founders who are solving urgent challenges – and shaping a more just and sustainable future.” — Georgia Levenson Keohane, CEO, Soros Economic Development Fund.
Proven Impact and Future Growth
Initially launched in Kenya and recently expanded to Lagos, Nigeria, Delta40 has already supported 16 companies, five of which were built directly within its studio. These ventures have catalyzed a 5.5x leverage on capital and created over 5,000 jobs across 30+ African countries.
“At FMO, market creation sits at the core of our 2030 strategy… Delta40’s venture studio model reflects this approach, pairing appropriate capital with hands-on support to help founders build resilient businesses across energy, food systems, and financial inclusion.” — Andrew Shaw, Manager, Impact FMO.
As the final close allows for further portfolio expansion, the momentum is palpable.
“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.” — Biola Alabi, Partner, Investments, Delta40.
About Delta40
Delta40 is a Venture Studio and VC Fund investing in and supporting founders on the frontlines of Africa’s most urgent challenges; from energy & mobility, to agriculture & food systems, and fintech & AI. With offices in Nairobi, Kenya and Lagos, Nigeria, Delta40 is led by a team of experienced entrepreneurs, operators, and innovators dedicated to providing catalytic capital and embedded support from idea stage to pan-African scale.
