Delta40 raises $20 million to fund Africa’s innovators

Delta40 has raised $20 million to support its integrated venture studio and fund, marking one of the continent’s first institutional raises that combines venture building with early-stage capital. 

The firm says the model pairs investment with hands-on operational support, working alongside founders from idea stage through scale.

The approach is designed to address persistent funding and execution gaps facing African startups. 

The raise brings together 54 investors from 13 countries, including development finance institutions, family offices, foundations and high-net-worth individuals.

Twenty-five founders are among the backers, reinforcing what the firm describes as a “founders backing founders” network. 

Delta40 launched its studio model in Kenya and has since expanded to Lagos, Nigeria, offering portfolio companies on-the-ground support as they grow across African markets.

Blending capital with operational support 

Delta40 writes initial checks of $100,000 to $500,000 at idea-to-seed stage, with room for follow-on investment.

Beyond funding, the team provides support in product development, fundraising, finance, legal strategy, commercial partnerships and growth planning. 

The firm focuses on energy and mobility, agriculture and fintech, with plans to embed artificial intelligence across sectors.

It says global data shows startups working with venture studios raise capital faster and reach exits sooner than peers in more traditional models. 

“Through Delta40, we’re building and scaling innovations that transform lives, economies and planetary health across Africa,” said Lyndsay Holley Handler, founder and chief executive of Delta40.

“What sets this model apart is the depth of experience within our community.

More than 75% of our investors and team members have built ventures in Africa.”

Targeting funding gaps in Africa 

Delta40 says it was created to address structural imbalances in Africa’s innovation ecosystem.

Less than 2% of venture capital on the continent goes to female founders, while fewer than 30% of funds reach African founders, according to industry data cited by the firm. 

Investors include the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, The Rockefeller Foundation and the Skoll Foundation, among others.

Global law firm Wilson Sonsini advised on the structure and also invested.

Georgia Levenson Keohane, chief executive of the Soros Economic Development Fund, said Delta40 reflects the type of locally led innovation needed to build inclusive economies. 

Andrew Shaw, manager for impact at FMO, said the model aligns with the bank’s focus on market creation and improving entrepreneurs’ access to appropriate capital. 

To date, Delta40 has backed 16 companies, including five built within its studio.

The ventures operate in more than 30 African countries and have created over 5,000 direct and indirect jobs, according to the firm.