Grace Ashiru
The Gates Foundation-supported initiative, Investing in Innovation Africa(i3), alongside donors, pharmaceutical manufacturers, and African government entities, will allocate $1.6 million to fund 15 healthtech startups across Africa.
The initiative will provide $50,000 equity-free grants to ten early-stage startups and up to $225,000 each to five additional startups focused on improving healthcare delivery, pharmacy services, and product distribution. Currently in its third cohort, i3 will target startups with a proven product-market fit and annual revenues surpassing $10,000, while growth-stage companies must exhibit national operations and at least $500,000 in revenue.
This comes as venture capital funding in Africa sees a decline, with healthtech startups securing the smallest share of funding in the past year. In the first half of 2024, healthtech startups raised $42.2 million, representing approximately 6.5% of the total funds raised across the continent.
Backed by major global healthcare players such as the Gates Foundation and Sanofi’s Global Health Unit , i3 will offer 15 African startups a combination of financial, market, and partnership support to enhance access to healthcare across the continent.
Dr. Uchenna Igbokwe, CEO of SCIDaR , which manages i3 in collaboration with Salient Advisory, stated, “With the right resources, African-led companies can scale commercially while reaching underserved communities.”
Since its inception in 2021, i3 has invested $3 million into 60 startups across 16 African nations. In its second cohort, i3 provided $50,000 equity-free grants to 29 startups, including Nigerian companies like Wella Health, Famasi, and Healthtracka.
In addition to funding, i3 will offer startups strategic customer introductions, customized deal facilitation, and tailored partnership support. The program aims to make a significant impact by creating over 150 strategic connections with healthcare organizations and targeting $30 million in contracts, alongside generating local job opportunities across Africa. Applications are open until February 28, 2025, with selected startups to be revealed on April 30. A virtual Q&A session will be held on February 21 to answer questions from potential applicants.
