Applications for the Google for Startups Accelerator Africa: Black Founders programme are now open to black-owned startups in South Africa.
The company says the fund is indicative of its commitment to supporting startups in South Africa and recognising the important role that entrepreneurial activity plays in economic and social development in the region.
Startups operating and headquartered in South Africa that are building solutions for the African or global market and have demonstrated significant market fit and growth potential, are eligible to apply for the fund. To be eligible, startups must have at least one black South African founder with relevant experience, a strong and driven team, a live product that utilises or has the potential to utilise AI, and a compatibility with Google products and potential for leveraging them to grow.
The hybrid programme will run from 2024 until March 2025 and will see 15 selected black South African-owned startups receive equity-free cash awards of up to $50 000 (over R1-million), cloud credit of $200 000 (R3,6-million), one-on-one training, and networking with mentors to help address the unique challenges faced by each startup. The funding for the Google for Startups Accelerator Africa: Black Founders programme will be distributed through a locally-based implementation partner.
“Startups in Africa are critical drivers of innovation, economic growth and social progress,” says Folarin Aiyegbusi, head of Startup Ecosystem, Google Sub-Saharan Africa. “By investing in South African black-owned startups we are driving systemic change and promoting job creation and wealth generation for the future.”
The programme rides on the success of previous Accelerator cohorts and Google’s Black Founders Fund which has awarded more than $30-million supporting Black-led startups in Africa, Brazil, Europe, and the US. The programme aims to secure funding, strengthen communities, and create generational change. As in previous programmes, the fund helps black tech entrepreneurs develop their businesses by addressing the inequality in venture capital funding.
Data shows that in 2022, the South African startup market experienced a decline in both deal activity and funding compared to the previous year. While 95 deals were closed – totaling nearly $640,18-million in funding – this was significantly lower than the record-high of 120 deals and $1,108-billion in funding achieved in 2021. In 2023, South Africa saw a further shift in funding dynamics.
The South African Minister of Communications and Digital Technologies, Solly Malatsi, praised Google for taking the initiative by setting up unique programmes to support startups.
“Government sees tech startups as key drivers of innovation and economic growth in the digital era,” he says. “They promote digital inclusion by offering accessible and affordable solutions for our communities. I’m excited by Google’s investment and technical support to stimulate the South African tech ecosystem and would like to encourage eligible startups to apply so they can use this opportunity to grow their businesses and help create employment.”