POD: No Seven-Year Wait—How Baobab Network is offering tentative investors a taste of Africa’s tech potential
Ambar van der Wath explains how Baobab Network, a tech venture accelerator, is helping investors test the waters in Africa's tech venture capital scene.
Ambar van der Wath—who leads investor relations at one of Africa's leading accelerator slash VC firms, Baobab Network—discusses with Andile Masuku how the firm is creating accessible entry points for cautious investors interested in early-stage African tech startups.
Episode Overview:
Picture this: You're an international investor curious about African tech, but you're not quite ready to write million-dollar checks or commit to a 7-year fund lockup. That's exactly the puzzle Baobab Network is solving with their new-ish investment vehicle - allowing investors to back a batch of startups for as little as $20K.
Key topics:
- Innovation in early-stage investment vehicles
- Market education and investor development
- Secondary markets and exit opportunities
- Equity considerations for early-stage founders
- The strategic role of venture debt
Notable points:
- Baobab Network is spreading bets across 16 markets (and counting)
- Their portfolio has hit 60 companies, with half joining in just the last two years
- They're actively hunting for founders who didn't go to Harvard (their words, not ours)
- Sometimes they even manage early exits - Van der Wath shares about a secondary sale just 14 months post-investment
Through their innovative batch investment approach, Baobab Network is creating what Van der Wath describes as a "trusted layer" between international capital and African startups. Listen in for her insights on secondary markets.
The episode provides valuable insights for anyone interested in African tech investment, especially newcomers exploring the ecosystem for the first time.