Investing in Innovation Africa (i3), a Gates Foundation-supported initiative, is once again putting African healthtech on the global map. The program has announced plans to invest $1.6 million in 15 startups across the continent, providing much-needed funding and strategic support to a sector often overlooked by traditional venture capital.
With healthtech startups raising just $42.2 million in the first half of 2024—only 6.5% of total venture capital raised in Africa—i3’s investment couldn’t come at a better time. As the continent grapples with healthcare access challenges, these funds have the potential to reshape healthcare delivery, pharmacy services, and product distribution at scale.
What’s on the Table?
The program will award:
- $50,000 equity-free grants to ten early-stage startups.
- Up to $225,000 for five growth-stage companies that have proven scalability and impact.
To qualify, early-stage startups need to show product-market fit and generate annual revenues of at least $10,000, while growth-stage startups must operate at a national level with revenues of at least $500,000.
Beyond Funding: Strategic Support
Unlike traditional grants, i3 offers a comprehensive package that includes:
- Partnerships and Networking: Over 150 connections with healthcare organizations to facilitate deals and collaborations.
- Market Access: Tailored introductions to strategic customers.
- Job Creation: The initiative aims to create local jobs while driving $30 million in healthcare contracts.
This holistic approach ensures startups not only survive but thrive in an environment where resources are often scarce.
Why This Matters for Africa
Africa’s healthcare system is at a tipping point. While the continent accounts for 17% of the global population, it shoulders 23% of the global disease burden. Yet, healthcare infrastructure remains woefully inadequate in many regions. Healthtech startups are stepping in to fill this gap, but funding constraints have limited their growth and impact.
i3’s investment brings more than money; it brings credibility, visibility, and access. Startups funded by i3, such as Nigeria’s Wella Health, Famasi, and Healthtracka, have already made strides in affordable healthcare, pharmacy delivery, and diagnostics. By empowering more companies with similar potential, i3 is catalyzing a ripple effect that could redefine healthcare access across the continent.
A Proven Track Record
Since its inception in 2021, i3 has invested $3 million in 60 startups across 16 African countries. The initiative’s third cohort will build on this success, focusing on solutions that not only meet local needs but also scale to regional and global markets.
How to Get Involved
Applications for the third cohort are open until February 28, 2025, with selected startups announced on April 30. For those unsure about the process, a virtual Q&A session on February 21 will provide clarity and guidance.
The Bigger Picture
As Dr. Uchenna Igbokwe, CEO of SCIDaR, notes, “With the right resources, African-led companies can scale commercially while reaching underserved communities.” This aligns with i3’s vision of transforming healthcare access, fostering innovation, and driving economic growth in Africa.
The impact of this initiative extends beyond startups. It’s a signal to the global tech and healthcare industries that African innovation is not just viable but vital. As healthtech startups gain traction, they create a blueprint for solving complex problems, proving that Africa is not just a consumer of innovation but a creator.
With i3’s support, the future of African healthtech looks brighter than ever. The continent’s challenges may be vast, but so is its potential—and initiatives like this are unlocking it one startup at a time.
