Kenyan venture capital firm Delta40 has raised $20 million, roughly Sh2.6 billion, to deepen its investment in startups locally and across the continent. The funding round attracted 54 investors spanning 13 countries, according to the firm.
Among the backers are the Soros Economic Development Fund founded by George Soros, Dutch development bank FMO, GIZ, Autodesk Foundation and The Rockefeller Foundation. The fresh capital will be channelled into founders building and scaling ventures in energy and mobility, agriculture and fintech, with artificial intelligence woven across these sectors.
Delta40 launched its venture studio in Kenya in 2023 before extending operations to Nigeria. It runs a hybrid model that pairs early-stage funding with hands-on operational support covering product development, capital raising, commercial strategy, finance, legal structuring, growth and exit planning. Initial cheques range from $100,000 to $500,000 at idea-to-seed stage, with room for follow-on investment.
The firm aggregates funding from development finance institutions, foundations, family offices, high-net-worth individuals and 25 startup founders, positioning the model as one where founders actively support fellow founders.
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Founder and chief executive Lyndsay Holley Handler said the distinguishing factor lies in its community of innovators and investors who guide ventures from concept to pan-African scale and eventual exits. She added that more than three-quarters of its investors and team members have previously built companies in Africa, bringing first-hand experience and networks from successful exits on and beyond the continent.
Delta40 reports having backed 16 companies so far, including five incubated within its own studio. Its portfolio cuts across clean energy, agriculture and fintech operations in 30 African countries and features firms such as Gridless, a Kenya-based bitcoin mining outfit, and logistics player Lori Systems.
Funding flows into African startups have begun to pick up again after a 2023 dip driven by inflationary pressure, currency volatility and tighter global interest rates.
