Startup Wise Guys Bags R483 Million For Diversified Funds Including African Investments

Startup accelerator and early-stage investor Startup Wise Guys has closed the first €25 million or R483 million of €45 million or R869 million that will be used across its various geographies and vertical-focused funds to support its new strategy focused on global markets that remain underserved by capital investment. With the funds, it will invest in a minimum of 200 startups from mostly across Europe and Africa in 2023/24, after making 120 investments in 2022.

In 2022, the global economy faced challenges that resulted in a 35% drop in global venture investment compared to the previous year. Europe experienced a 25% decline in startup funding, particularly impacting early-stage startups. However, Central and Eastern Europe defied the trend and achieved another record year for investment, raising $3.2 billion despite the uncertainty caused by the invasion of Ukraine.

Similarly, data from Africa indicates that the continent managed to maintain funding levels similar to those of 2021. Italy and Spain are core European markets that were hit hard by previous crises. Italy had a remarkable 2022, with the birth of two unicorns and a growth in its ecosystem’s value by a third. The impressive growth on display in Africa, CEE, and other areas in Europe, despite the downbeat macro-economic picture, suggests that there is under-leveraged scope for additional capital and venture support.

The new funds will allow Startup Wise Guys to intensify its investment and expansion in underfunded markets and expand its presence in Europe and Africa. Recent office openings in Italy and Spain enable it to reach more founders in Southern and Western Europe, as well as in Latin America and North Africa. In Spain, where it established its latest office in Bilbao in November 2022, Startup Wise Guys aims to solidify its standing in early-stage venture capital and replicate its success in Italy. Additionally, the accelerator continues to grow its African programs across the continent.

The company will not only prioritise acceleration investments and follow-ons but also a direct investment into growth-stage companies. Notable past direct investments include mobility unicorn Bolt, car subscription service Planet42, and Katana, a manufacturer’s ERP solution.

“In recent years, Startup Wise Guys has evolved into a truly international organisation, with an investment presence in countries ranging from Ukraine and Spain to South Africa,” Cristobal Alonso, Global CEO at Startup Wise Guys, said.

“We are now deploying our experience at scale to help passionate founders thrive globally, in spite of uncertain economic conditions. We are the early-stage investor ready to help digital entrepreneurs with brave ideas, especially at times of crisis.

“We proved that during Covid, and we were active after the Ukraine war started. We are determined to help entrepreneurs turn crises into new opportunities, and we have a strong track record helping purpose-driven founders become global entrepreneurs.”

In 2022, Startup Wise Guys executed 120 early-stage investments, managed 12 full-time programs, and introduced its first B2B digital SaaS program exclusively for African startups. They also launched an accelerator program focused on XR in Malaga, Spain. The accelerator fund also operates programs based out of Europe in the areas of SaaS, fintech, cyber security, and sustainability. As of the end of January this year, Startup Wise Guys had already made 12 investments.

The Startup Wise Guys portfolio boasts startups such as Ready Player Me, kevin., StepShot, and Ondato. A number of globally renowned investors have joined its portfolio investments, including A16Z, Accel, Lead ventures, Northzone and AV8.

Startup Wise Guys’ history is closely tied to the boom of the Estonian startup scene after Skype’s exit in 2005. The local Estonian scene has always been reflected in the brand, including the logo referencing the ’Estonian startup mafia’. To support its international expansion, the brand is undergoing significant changes to its branding on its 11th anniversary.

“As we have expanded far beyond Estonia’s borders, we felt it was time to update our brand to reflect our international presence and global vision for the future,” Zane Bojāre, Head of Brand at Startup Wise Guys, said.

“The new logo has a lot to unpack. It better reflects our personality, which is human and approachable, while still maintaining recognition of our name.

“We are bringing the focus back to the human founders by transitioning to a funky, welcoming, smiley face. We want founders from all over to feel identified with our mission of supporting passionate founders.”