Expert DOJO fund based in the United States is looking to invest $5 million in African startups
Expert DOJO fund based in the United States is looking to invest $5 million in African startups
During the first six months of this year, investments in African startups have returned to levels seen prior to the recession. While big investment firms such as Sequoia and Tiger Global, which are making bold statements about their interest in Africa through their investments, are generating the most excitement, some newer players are looking to get in on the action.
A good example of this is Expert DOJO, a New York-based early-stage fund that has committed a total of up to $5 million to investing in African startups this year. It plans to make between 20 and 50 new investments.
Since the launch of the firm's first fund in 2018, Expert DOJO has invested in over 100 companies at the pre-seed and seed stage in 30 countries, according to the firm. Shipsi, Squadra, and Woodpecker are just a few of the companies involved.
Expert DOJO made the decision to increase its focus on Africa after noticing that some of the most successful companies in its portfolio were based in the continent.
Expert DOJO distinguishes itself from other global accelerators by assembling an entire Africa-focused team, as well as cross-functional experts and Entrepreneurs in Residence, in addition to a global network of partners (EIRs).
In addition to its new fund, the company will dedicate an Africa-only cohort in September 2021 (for which applications are currently being accepted) to startups focusing on the African marketplace. Expert DOJO, in a similar vein to the international cohort program, is seeking to provide $100,000 in funding as well as a three-month virtual accelerator program for the participants in this cohort.
What types of startups are eligible for this? Startups that are tech-enabled and have a proven and scalable product. These startups must also have their primary operations in Africa and generate a minimum of $5,000 in monthly recurring revenue to be considered.
Expert DOJO invested in StarNews Mobile, a mobile video network for Africa, which was one of the first African startups to receive funding. Current mobile subscribers total more than 10 million throughout the African continent, and it has forged content partnerships with Universal Music Distribution and Sony Music Distribution, in addition to marketing partnerships with pan-African mobile operators MTN, Orange, and Moov.
What role did Expert DOJO play in the success of StarNews Mobile? Among the services they provided were introductions to accounting, legal counsel, and digital marketing professionals. Guy Kamgaing, the company's chief executive officer, stated that they also provided strategic advice.
When Expert DOJO invested in 2019, he wasn't necessarily looking for a new investment opportunity. But it was when he realized that Expert DOJO had a support network in addition to money, and that they were dedicated to better understanding Africa, that he realized he had made the right decision.
“Expert DOJO has remained consistent over the years in terms of their interest in and commitment to African companies,” Kamgaing stated.
According to Brian Mac Machon, the founder of Expert DOJO, the success of startups such as StarNews inspired them to invest even more heavily in Africa in the future.
“One thing we've noticed across our Africa portfolio is that these founders have maintained a laser-like focus on growth from the beginning, demonstrating extraordinary resilience, grit, and, most importantly, results. It has been our experience that these startups have taken advantage of the tools and resources provided by the DOJO accelerator and scaled at a rate that is far exceeding industry standards,” Mac Machon said.
What’s different about Expert DOJO?
65 percent of DOJO's portfolio companies are led by women or minorities. “With a $32 million valuation and the third most active startup accelerator in the United States, Expert DOJO aims to close the global inequities in venture capital funding: women and minorities are underrepresented in venture capital funding. According to Mac Mahon, “We are investing in founders who represent the diverse society in which we live, rather than just the privileged Silicon Valley elite.”
Another of Expert DOJO's notable investments is Klasha, a Nigerian fintech startup led by a female entrepreneur.
When asked about her DOJO experience, Jess Anuna, CEO of Klasha shared her thoughts, saying, "DOJO works tirelessly to secure funding for their startups and ensure that they are introduced to the right investors who will help their company scale, invest in future rounds, and strategically align with their company's needs."
The support provided to startups that participate in Expert DOJO's acceleration program extends beyond the initial three-month period. As Victoria Mehran of Expert Dojo explained, "We're committed to assisting them for the rest of their lives. " We're cramming in as many growth strategy calls as we can with all of our founders. During the day, Brian is on the phone with the company's founders from 5 am to 11 pm; the same is true for other members of the team.”
Expert Dojo's inaugural Africa cohort represents only the beginning of the company's plans in the continent. It is hoped that they will establish a fund dedicated solely to Africa in the near future.
