AFRICA’S STARTUPS TO GAIN NEW POWER AS VILLAGE CAPITAL HANDS FUNDING DECISIONS TO LOCAL EXPERTS

Village Capital launches a $4M community-led fund to empower African startups through local decision-makers and inclusive innovation.

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Village Capital
Village Capital


In a bold shift from traditional venture funding, Village Capital is putting African changemakers in charge, launching a $4M fund that gives local leaders the power to shape the continent’s entrepreneurial future.

A transformative new fund is flipping the script on how startup investment works in Africa. Village Capital, in collaboration with the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO), has launched the Africa Ecosystem Catalysts Facility (AECF), a $4 million initiative aimed at driving innovation in agritech, clean energy, circular economy, and digital finance.

In a striking departure from the top-down investment model, AECF puts local Entrepreneur Support Organisations (ESOs) in the driver’s seat. Groups such as Reach for Change (Ghana), Africa Fintech Foundry and FATE Foundation (Nigeria), and Anza Entrepreneurs and Ennovate Ventures (Tanzania) will act as venture partners, empowered to identify, evaluate, and co-invest in startups within their communities.

“This isn’t just about sourcing deals,” said Nathaly Botero, Innovations Manager at Village Capital.
“It’s about making smarter, more informed investments by working alongside those already strengthening entrepreneurial communities.”

The fund will target high-potential early-stage startups with a strong emphasis on youth- and women-led enterprises, a demographic that continues to be underrepresented in global venture capital flows. With less than 3% of global VC funding currently reaching Africa, the AECF aims to correct this imbalance by tapping into local networks and knowledge.

The model builds on the momentum of earlier programs like the Orange Corners Innovation Fund (OCIF) and capitalizes on Village Capital’s deep experience in the space. The organization has already invested in startups like Aquarech in Kenya and Coamana in Nigeria, with over $7 billion in follow-on funding raised by its global alumni network since 2009.

Backing from FMO and RVO brings additional weight and wisdom to the initiative, reinforcing its mission to create sustainable and inclusive startup ecosystems across the continent.

By decentralizing decision-making and turning ESOs into co-creators of capital, the AECF doesn’t just fund startups, it reimagines how Africa builds and scales solutions from within.

If the model proves successful, it could offer a blueprint for smarter, more equitable investment, led by those who know their communities best.

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