Nairobi-based venture capital firm Delta40 has secured KES2.6 billion ($20 million) to step up its financing initiatives for startups in the country and across Africa.

In an update earlier this week, Delta40 said that the fresh funding marks the continent's maiden institutional raise linking venture building and early-stage capital, merging investment with hands-on studio support from experienced operators to build and scale startups.

“Through Delta40, we’re building and scaling innovations that transform lives, economies, and planetary health across Africa, with solutions that can power and feed the world. What sets this model apart is our community of innovators, investors, and business leaders who provide hands-on support from idea to pan-African scale and impactful exits," explained Lyndsay Holley Handler, Founder and CEO, Delta40.

She added, "Over 75 percent of our investors and team have built ventures in Africa, bringing deep experience, networks, and lessons from successful exits across the continent and beyond.” 

At the moment, Delta40 which also has an office in Nigeria, has financed a total of 16 companies, cutting across clean energy, agriculture, and fintech spread in over 30 countries in Africa, giving rise to over 5,000 direct and indirect work opportunities.

The venture draws together upto 54 investors from 13 countries, cutting across global institutions, high-net-worth individuals, development finance institutions (DFIs), family offices, and established foundations.

Delta40 usually channels its investments in amounts ranging between $100,000 and $500,000 at the idea-to-Seed stage, with the potential to offer the beneficiaries follow-on investment. 

Additionally, Delta40 acts as a long-term extension of the startup team, offering a hand up on commercial growth and fundraising execution, including investor materials, financial modeling, strategy, exit opportunities, and targeted introductions to help founders secure subsequent rounds. 

According to industry data, venture studios such as Delta40 help startups raise capital 2x farster and realize IPO and M&A exits 30% faster than traditional models. 

Furthermore, VC funds that provide significant post-investment support have been shown to realize 50% greater net IRRs.

Some of the institutional investors and partners backing Delta40 include the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, and The Rockefeller Foundation.

Others are Allan & Gill Gray Philanthropies, Livelihood Impact Fund, Small Foundation, Lemelson Foundation, Factor(E) Ventures, and Skoll Foundation. Additionally, the backers include strong African participation and on-the-ground champions. 

"Delta40’s venture studio model reflects this approach, pairing appropriate capital with hands-on support to help founders build resilient businesses across energy, food systems, and financial inclusion. Through our Market Creation programme, we are proud to back initiatives that unlock innovation and deliver lasting impact for people, economies, and the planet," said Andrew Shaw, Manager, Impact FMO.

[email protected]