In the ever-evolving world of venture capital, few stories are as compelling as Lexi Novitske’s journey into the African tech landscape. As the General Partner of Norrsken22, an African tech growth fund based in Lagos, Nigeria, and South Africa, Lexi has witnessed firsthand the dynamic growth of the continent’s technology sector. Her experience offers valuable lessons for anyone interested in understanding the current and future landscape of tech investment in Africa.
Norrsken22 list of successful investments in African tech startups includes:
NALA – A Tanzanian fintech which raised $40 million in 2024 following 10x revenue growth and ~500K in user growth
FUNDING | Tanzanian Fintech, Nala, Raises $40 Million in Series A Following 10x Revenue Growth and ~500K User Growth
“To the 200+ Mobile money, bank partners, regulators and investors, your support has been invaluable to us in enabling fast and secure payments cross border… pic.twitter.com/zYoYU243H5
— BitKE (@BitcoinKE) July 10, 2024
OneOrder – An Egyptian restaurant management tool which raised $16 million in Series A funding in 2024
Shara – A Nigerian app offering collateral-free loans to small and medium businesses and has raised over $6 million to date
Sabi – A Nigerian supply chain services provider which recently raised $6 million
We are excited to announce that @FastCompany has named Sabi as one of the most innovative companies in Europe, the Middle East, and Africa in 2023.
This recognition is based on our unwavering dedication to the Informal trade ecosystem…
1/2 pic.twitter.com/EhPHghOHJ3
— Sabi (@sabiam_africa) March 2, 2023
AutoChek – A Nigerian automotive app offering auto solutons such as loans, maintenance / after sales services, warranty solutions, marketplaces and has raised over $17 million so far
With Autochek, get the financial security you deserve. Visit our website to get started on your adventure right now. https://t.co/LLe6R6A3n1 #Cashloan #FinancialFreedom #freedom #autochek pic.twitter.com/MMiOUgofZ3
— Autochek Africa (@AutochekAfrica) May 22, 2024
Smile ID – An African-focussed leading ID verification service which raised $20 million and accounts for 4% of all digital ID checks with over 75 million ID verifications
‘Smile Identity now powers 4% of Africa.’ – CEO, @SmileIdentity pic.twitter.com/RVTXT1khxB
— BitKE (@BitcoinKE) April 21, 2023
TymeBank – The first digital bank to break even in Africa and having raised over $300 million and have a customer base of over 10 million in South Africa
South AfricanDigital Banking Platform, TymeBank, Raises Over $77 Million as it Onboards Over 300K Customers a Month
In South Africa, TymeBank has established partnerships with various physical retail locations. These partnerships serve as on-boarding points for customers… pic.twitter.com/cw1X4Bohlk
— BitKE (@BitcoinKE) June 1, 2023
Lexi’s path to venture capital in Africa wasn’t straightforward. Originally, she followed a traditional finance career path in the U.S., working in investment banking and then at a hedge fund. However, her decision to take a sabbatical to travel around Africa turned into a transformative experience. What began as a brief adventure evolved into a deep commitment to the continent.
Lexi’s story underscores the importance of being open to unexpected opportunities and how personal experiences can pivot professional careers in unforeseen ways.
When Lexi started her investment journey in Nigeria, the tech scene was vastly different from today’s vibrant landscape.
Back then, major tech success stories were limited to telecom companies and early players like Interswitch. This nascent stage of the tech ecosystem provided a unique opportunity for early-stage investments. Lexi’s move to angel investing was driven by the realization that while early-stage funding was available, there was a significant gap in Series A and beyond. This insight highlights the critical role of funding at different stages of a company’s growth and the need for investors to adapt their strategies as ecosystems evolve.
Norrsken22 was born out of a collaboration with:
Natalie Kolbe
Hans Otterling, and
Niklas Adalberth
inspired by their experiences in the Nordics.
The fund aims to address the gap in growth-stage investments, particularly from Series A onwards. This initiative reflects a strategic approach to investing, focusing on companies that are ready to scale and expand across Africa.
In November 2023, Norrsken22 announced the its first fund’s fundraising of $205 million and said it intends to make investments in approximately 20 startups across the continent, with individual investment sizes ranging from $10 million to $16 million.
FUNDING | Pan African VC, Norrsken22, Raises $205 Million in its Maiden Fund for Growth Stage Startups
Norrsken22 intends to make investments in approximately 20 startups across the continent, with individual investment sizes ranging from $10 million to $16 million.
The fund… pic.twitter.com/w05WxOY8qt
— BitKE (@BitcoinKE) November 8, 2023
Norrsken22’s connection with the Norrsken Foundation, which has been active in Africa, provides a solid foundation for creating a next-generation tech ecosystem on the continent.
Key Investment Focus Areas
Norrsken22 has targeted several critical sectors:
Fintech: The fund is particularly interested in payments and cross-border transactions, recognizing the inefficiencies in these areas and the potential for high-impact solutions
Supply Chain: Addressing inefficiencies in the supply chain sector offers both high margin opportunities and significant improvements in trade efficiency across Africa
Emerging Sectors: While still developing, sectors like ed-tech and e-health are on the radar for future investments as they mature
Understanding these focus areas can provide insights into the broader trends and opportunities within the African tech market.
Adding Value Beyond Capital
Norrsken22 doesn’t just invest money; it adds significant value through strategic guidance and operational support.
The fund’s team often takes board seats and collaborates closely with founders on strategy. Their presence in key tech hubs across Africa, like Cairo (Egypt), Lagos (Nigeria), Nairobi (Kenya), Cape Town, and Johannesburg (South Africa) allows them to assist with business development, regulatory issues, talent acquisition, and more. This approach highlights the importance of active engagement in the growth and success of portfolio companies.
Navigating Market Challenges and Future Outlook
Recent capital shortages and economic headwinds have impacted the African investment landscape.
REPORT | Funding to African Startups Declines Over 50% YoY to $780 Million in H1 2024
The decline in startup funding continues the downtrend witnessed in 2023 when Africa’s technology startups raised a total of $3.5 billion across 547 deals representing a 46% decline compared… pic.twitter.com/HDqRSX1Dep
— BitKE (@BitcoinKE) July 5, 2024
However, there’s a growing rebound for high-quality companies that demonstrate strong growth and profitability. Lexi’s optimism about Africa’s tech future reflects the continent’s vast potential and the significant opportunities that lie ahead. The median age in Africa and the rapid urbanization present a promising backdrop for tech innovation and investment.
REPORT | Lagos and Cairo Ranked Among the Top 100 Startup Cities in the World
The report presents the latest research on the global startup economy and includes rankings for 100 countries and 1,000 cities. It contains detailed information on the startup scene of 100… pic.twitter.com/UUekyOFq33
— BitKE (@BitcoinKE) June 14, 2024
Looking ahead, Norrsken22 plans to make several more investments by the end of the year, including both large and early-stage opportunities. This forward-looking strategy indicates the fund’s commitment to staying agile and responsive to market developments.
Lexi Novitske’s journey and insights offer a valuable perspective on the growing tech ecosystem in Africa.
“I’m investing in Africa because I think it is the most exciting market in the world, and I think we’re only at day one. I think the future of the world will be in Africa – the median age is 25, China for example is 39. And if we look at this picture in a couple of years time it is going to be even more dramatic,” she said.
“It is a great investment opportunity and a fantastic opportunity to make life better for the billions of people calling Africa home.”
Lexi’s experiences highlight the importance of being adaptable, understanding market needs, and actively contributing to the development of emerging sectors. As Africa continues to evolve as a tech hub, investors and entrepreneurs alike can draw inspiration from Lexi’s approach and the opportunities that lie ahead.
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