Investing in Innovation Africa (i3), a collaborative initiative supported by the Gates Foundation, a consortium of donors, pharmaceutical manufacturers, and African government institutions, is set to invest $1.6 million in 15 healthtech startups across the African continent. This initiative aims to bolster the healthcare landscape by providing financial support to innovative companies addressing critical challenges in healthcare delivery, pharmacy services, and product distribution.
As part of this funding round, i3 will award $50,000 in equity-free grants to ten early-stage startups, while five additional early-stage startups will receive grants of up to $225,000 each. This funding is specifically targeted at startups that have demonstrated a viable product-market fit and have achieved annual revenues exceeding $10,000. For growth-stage companies, eligibility requires evidence of national-level operations and a minimum revenue of $500,000.
This funding initiative comes at a time when venture capital investment in Africa is experiencing a downturn, with healthtech startups receiving the smallest share of funding in the past year. In the first half of 2024, healthtech companies raised only $42.2 million, accounting for approximately 6.5% of the total funds raised across all sectors.
Backed by prominent global healthcare organizations, including the Gates Foundation and Sanofi’s Global Health Unit, i3 aims to provide a comprehensive support package to 15 African startups. This support will encompass not only financial assistance but also market access and partnership opportunities, ultimately improving healthcare accessibility across the continent.
Dr. Uchenna Igbokwe, CEO of SCIDaR, which coordinates the i3 initiative alongside Salient Advisory, emphasized the potential of African-led companies to scale commercially while effectively reaching underserved communities. He stated, “With the right resources, African-led companies can scale commercially while reaching underserved communities.”
Since its inception in 2021, i3 has invested a total of $3 million in 60 startups across 16 African countries. In its previous cohort, i3 funded 29 startups, including notable Nigerian companies such as Wella Health, Famasi, and Healthtracka, each receiving a $50,000 equity-free grant.
In addition to financial support, i3 will offer startups strategic introductions to potential customers, bespoke deal facilitation, and tailored partnership readiness assistance. The program aims to create a significant impact by fostering over 150 strategic connections with healthcare organizations, targeting $30 million in contracts, and generating local job opportunities throughout Africa.
Applications for this funding opportunity will close on February 28, 2025, with the selected startups to be announced on April 30. To assist potential applicants, a virtual Q&A session is scheduled for February 21, providing an opportunity to address any questions regarding the application process.
