Partech shaker, the innovation arm of the Paris-based VC firm partech, has launched an accelerator program called Chapter54 to help European startups break into African markets.
The accelerator will accept 10 technology startups annually for the next four years for the Chapter54 program, which will last up to eight months. Application for the inaugural cohort will open next month, and successful startups will begin the acceleration journey in April.
Chapter54 is funded by KfW Development Bank on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) with 5.7 million US dollars (5 million euros).
“Investors from all sectors are welcome – but they must have business experience, be registered in one European country and active in two European countries, have a solid financial basis and regular income.” said KfW.
Vincent Previ, the Chapter54 executive told TechCrunch that startups will go through several stages of preparation, including mentoring programs with founders running successful businesses across the continent and with C-suite tech or startup executives.
“We know the European tech ecosystem very well because we are one of the most prominent investors in European technology. We are now a major investor in African technology and have the capacity to run innovative projects through Partech Shaker… From KfW’s perspective, we were a good player to run this acceleration program,” Previ said.
Chapter54 will match mentors with startups based on their business models, conduct webinars with various speakers, and review startups’ operational plans “to verify that what they have designed matches the reality on the ground.”
Previ said that during these sessions they will “check that the participating companies have the right knowledge of what it means to run a technology company in Africa and have what it takes to hire technicians”.
“We will host one session where we will compare the gig economy in Europe and Africa and another where we will help them identify a B2C market size in Africa (which is not comparable to Europe).”
“If you want to enter Africa, you must do so properly and in accordance with the law. You have to adjust the way you work. We will help them reinvent the way they do business (to enter African markets).”
Chapter54 caters to growth-stage start-ups with significant traction in the countries in which they operate across Europe.
Partech has 15 investments in nine different countries across Africa including Wave; a US and Senegal-based mobile money service provider, Tugende, a Ugandan mobility technology company, and Trade Depot, a Nigeria and US-based company that connects consumer goods brands with retailers.
Africa’s growing young and tech-savvy population, the deepening of the internet, the development of digital infrastructures and the rapid human adoption of modern technologies have positioned the continent as the next frontier of growth. KfW said it supports Chapter54 to boost growth and create jobs.
