Africa’s Delta40 Raises $20 Million to Power Startups with Capital and Hands-On Support
Delta40, an Africa-focused venture studio and early-stage fund, has secured $20 million in funding to support the growth of high-impact startups across the continent. The raise marks a major milestone as Africa’s first institutional capital raise that fully integrates a venture studio model with an early-stage fund, combining investment with deep, hands-on operational support.
The funding will enable Delta40 to build and scale startups from idea to pan-African expansion, with a strong focus on energy and mobility, agriculture, and fintech, while embedding artificial intelligence across all sectors.
A Founder-Led, Operator-Driven Ecosystem
The raise brings together 54 investors from 13 countries, including global institutions, development finance institutions (DFIs), family offices, foundations, high-net-worth individuals, and startup founders. Notably, 25 founders participated as investors, reinforcing a “founders backing founders” ecosystem that strengthens capital access for the next generation of African entrepreneurs.
Several founders have also reinvested their personal capital into Delta40’s studio model, creating a cycle of mentorship, capital, and operational expertise aimed at building scalable, resilient African ventures.
From Kenya to Nigeria—and Beyond
Delta40 initially launched its venture studio in Kenya and has since expanded to Lagos, Nigeria, offering on-the-ground support to portfolio companies scaling across Africa. Its integrated model pairs early-stage capital with embedded expertise in product development, fundraising, finance, legal, commercial growth, strategy, and exits.
Through its studio, Delta40 typically invests $100,000 to $500,000 at the idea-to-Seed stage, with capacity for follow-on funding. The team operates as a long-term extension of founders’ teams—supporting investor materials, financial modeling, go-to-market strategies, and targeted introductions to unlock future funding rounds.
Industry data shows that venture studio-backed startups raise capital twice as fast and achieve IPO or M&A exits up to 30% faster than traditional startup models. Venture funds that provide substantial post-investment support have also demonstrated up to 50% higher net IRRs.
Addressing Africa’s Startup Funding Gap
Delta40 was created to tackle long-standing structural challenges in Africa’s innovation ecosystem. Currently, less than 2% of venture capital goes to female founders, and under 30% reaches African founders, despite evidence that diverse, locally led teams deliver stronger financial returns and greater impact.
By backing founders at the ideation stage and providing long-term operational support, Delta40 aims to accelerate innovation, reduce failure rates, and help African startups reach scale and exit successfully.
“Through Delta40, we’re building and scaling innovations that transform lives, economies, and planetary health across Africa. What sets us apart is our community of operators and investors who provide hands-on support from idea to pan-African scale and impactful exits,”
— Lyndsay Holley Handler, Founder & CEO, Delta40
Strong Institutional and Strategic Backing
Delta40’s investor base reflects its mission to build bold, locally grounded ventures. Institutional investors and partners include the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, The Rockefeller Foundation, Allan & Gill Gray Philanthropies, Livelihood Impact Fund, Small Foundation, Lemelson Foundation, Factor(E) Ventures, and Skoll Foundation, alongside strong African participation.
The venture studio worked with global law firm Wilson Sonsini to design its innovative legal and financing structure; the firm also invested in the fund.
“Delta40 exemplifies the kind of bold, locally led innovation needed to build inclusive economies and environmental resilience across Africa,”
— Georgia Levenson Keohane, CEO, Soros Economic Development Fund
Growing Impact Across the Continent
To date, Delta40 has invested in and supported 16 companies, including five ventures built directly within its studio, achieving a 5.5x leverage on deployed capital. These companies operate across 30+ African countries, have created over 5,000 direct and indirect jobs, and are driving impact in clean energy, agriculture, and financial inclusion.
The final close of the $20 million fund will allow Delta40 to expand its portfolio and deepen its venture studio support—strengthening Africa’s pipeline of scalable, high-impact startups.
“Delta40 delivers both bold capital and hands-on support—and that’s why I’m confident the momentum will only accelerate,”
— Biola Alabi, Partner, Investments, Delta40
