In its first two years, Investing in Innovation Africa (i3) successfully supported 60 startups across two cohorts. For its third cohort, however, the program is becoming more selective, offering support to just 15 startups, including 10 early-stage ventures and 5 growth-stage companies.
“One of the key lessons from the first phase was the importance of spending more time with the startups. We don’t just want to provide risk-free funding; we also want to offer significant support to help them land partnerships. This kind of tailored, bespoke support requires a much smaller group of startups,” shared Somto Chloe Keluo-Udeke, Senior Consultant at Salient Advisory, in an interview with Techpoint Africa.
Launched in 2022, i3 is backed by the Gates Foundation, MSD, Cencora, Endless Foundation, HELP Logistics (a subsidiary of the Kühne Foundation), Sanofi’s Global Health Unit, and Chemonics. The program offers grant funding, introductions to potential customers, and personalised counsel to secure partnerships.
In the two years since its launch, i3 has facilitated 450 introductions to donors, leading health agencies, and governments. These efforts have led to over $11 million in contracts for portfolio startups. Additionally, 49 out of the 60 innovators have expanded their operations, creating 942 jobs in the process.
i3 has deployed $2.9 million in grants, which has enabled startups to raise an additional $50 million in funding. With venture capital often scarce for healthtech startups, i3’s grant funding provides a vital lifeline, offering these companies the flexibility to test their ideas in the market. African startups to have gone through the i3 programme include WellaHealth, Figorr, and Healthtracka.
“With the right resources, African-led companies can scale commercially, reach underserved communities, and create jobs. The i3 program has demonstrated, in just two years, that an actively engaged network of global health institutions and partners can empower African innovators to solve critical healthcare problems on the continent,” Dr. Uchenna Igbokwe, CEO of SCIDaR, said in a statement.
In 2024, i3 set a goal of having at least 20% of its cohort consist of startups from Francophone Africa, a milestone Keluo-Udeke says was achieved, though not without challenges. The main difficulty stemmed from the fact that most Francophone African countries have regulations that do not support online pharmacies.
According to Oluwaseun Afuye, Senior Consultant at Salient Advisory, i3 works closely with policymakers and innovators to share successful strategies from other countries and offer guidance on navigating regulations for online pharmacies. Given that government changes in Africa often result in policy shifts, the i3 team works with the civil service who typically remain in place longer to drive policy formulation and implementation.
i3 is currently accepting applications for its third cohort. Early-stage startups can receive up to $50,000, while growth-stage companies can receive up to $225,000. Applications close on Friday, February 28, 2025. Eligible startups can apply here.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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