A new Angel Investment entity has launched in Senegal to provide funding for early stage companies throughout the WAEMU region and contiguous countries. Named Dakar Network Angels (DNA for short), it has already made its first investment in an Ivorian startup called Coliba.
Coliba which uses a mobile app to co-ordinate waste recycling, will will receive mentorship and a minimum of $25K in seed funds.
DNA says its mission is to invest in innovative companies with high growth potential across Africa. Its founder is Marieme Diop, a VC investor at Orange Digital Ventures.
In a discussion with TechCrunch, Diop underscored VC disparities between francophone and non-francophone Africa as the primary driver for launching DNA. She pointed to funding data by Partech indicating that 76 percent of investment to African startups goes to three English speaking countries—Nigeria, Kenya, and South Africa.
“With DNA we want to develop first an ecosystem of resources…for the francophone Africa region…that entrepreneurs can tap into for scaling. We also want to position DNA as the first investment academy that will educate…on…methods for investing, mentoring, conducting due diligence, and creating more value across that ecosystem.”
To gain consideration for DNA investment, startups must gain referral by a member. DNA will take a minority stake (less than 10 percent) in ventures that receive seed funds and provide program mentorship until exits, according to Diop.
DNA members are either investment professionals or industry experts who commit to providing support to its investees (experience sharing, mentoring, providing networking opportunities, etc.) and likely to bring their experience, to share their network and to provide sound advice to foster the development and success of startups.They are based in the four corners of the world (Africa, Asia, Europe and America).
To become an angel, members must commit to investing a minimum of $10K a year (for those coming on as individuals), $20K (for corporates), and be on hand to support the portfolio startups, according to DNA’s Corporate Membership Charter.
The investor network is registered as commercial non-profit in Senegal and held its first meeting in Dakar this month. The inaugural 31 members include Facebook Network Investor Lead Ibrahim Ba, former AfriLabs head Tayo Akinyemi, and Timbuktu Capital Management investor Ousmane Diagne. Moustapha Ndiaye and Ibrahima Niang co-founded DNA with Diop.
DNA aims to expand in investment size and scope in coming years. After building the angel network and its experience, DNA will look to invest in more mature companies. On a future fund size, “We’ve discussed $5 million as our first target,” said Diop.
