Venture platform Modus has launched Modus Africa, a venture capital fund for AI and blockchain startups across sub-Saharan Africa.
The spinoff continues Modus’s string of moves over the past 18 months, which has seen it add branches in Abu Dhabi, Cairo, and, most recently, Riyadh, supported by institutions like Mubadala’s Hub71. Modus says that its entry into Africa creates an additional conduit of market access for Modus portfolio companies while also enabling African startups to scale into the MENA region.
Modus says its fund is backed by several investors ranging from UHNWI, family offices, private investors, and government-backed entities from the U.S., the EU, and MENA.
African startups raised over $5 billion and minted five unicorns. And despite the current macroeconomic trends and conditions that have resulted in layoffs, down rounds and shutdowns, startups on the continent are set to top last year’s fundraising record numbers.
Modus’s interest in AI and blockchain technologies is intriguing. Though it has household names such as Tunisia’s InstaDeep, Kenya’s Sama, and South Africa’s DataProphet and several web3 startups claiming to build on the blockchain Africa’s AI and blockchain sectors are still relatively nascent.
Africa has the potential of reaching 200 million+ new blockchain users in the next four years, fueled by necessity and a fast-growing tech-savvy population. Nevertheless, the six-year-old VC firm isn’t only taking a chance on purely AI and blockchain startups; instead, it is cutting checks in startups across broader sectors that are implementing those technologies into their products.
Modus is proud to be launching an Africa-MENA investment corridor to continue supporting and investing in emerging innovation ecosystems. The Modus platform is uniquely positioned to deliver impact and value to African communities through operational, institutional, and financial capital.