African startups have faced a decline in funding in recent years, but there is a growing number of initiatives aimed at helping them secure more investment. 

Helios Investment Partners, a UK-based private equity firm, has secured backing from the International Finance Corporation (IFC) and the European Investment Bank (EIB) to launch a $750 million fund focused on technological innovation across Africa.

The fund, dubbed Helios V, aims to invest in 10-12 companies, with average investments ranging from $70 million to $80 million, according to the IFC's project information portal.

The EIB has committed $75 million to Helios V, while the IFC has also invested $75 million and earmarked an additional $50 million for direct co-investments in select portfolio companies.

Helios V will primarily target startups in digital infrastructure, including data centers, fiber optic networks, and telecom towers. The fund will also invest in financial technology and technology-enabled business services, such as cloud solutions, digital health, and logistics.

While the fund is expected to bolster Africa's entrepreneurial landscape, its success hinges on the selection of viable companies and their ability to achieve sustainable growth amid economic volatility.

The launch comes as African startups face a decline in funding. In 2024, they raised $2.2 billion in equity, debt, and grants (excluding exits), according to data from Africa: The Big Deal, a database tracking investments above $100,000. This represents a 25% drop from the $2.9 billion raised in 2023.

By Adoni Conrad Quenum,

Editing by Feriol Bewa