Delta40 has closed a $20 million fundraising round to scale what it describes as Africa’s first institutional Venture Studio + Fund model. This is a hybrid approach that combines early-stage capital with hands-on venture-building support.
The raise brings together 54 investors from 13 countries including development finance institutions, global foundations, family offices, high-net-worth individuals and a growing group of African founders themselves. 25 of the investors are founders backing other founders. This reinforces what Delta40 calls a “founders backing founders” ecosystem.
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Originally launched in Kenya and now expanded to Lagos, Nigeria, Delta40 operates a venture studio model that goes beyond writing cheques. The firm partners with startups from idea to scale, embedding expertise across product, growth, fundraising, finance, legal and exit strategy.
“Through Delta40, we’re building and scaling innovations that transform lives, economies, and planetary health across Africa,” said Lyndsay Holley Handler, Founder and CEO of Delta40. “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.”
Delta40 typically writes first cheques of between $100,000 and $500,000 at the idea-to-Seed stage, with room for follow-on investment. Beyond capital, the studio acts as an extension of the startup team by supporting commercial execution, investor materials, financial modeling and strategic introductions to help founders raise subsequent rounds.
The model is designed to address long-standing gaps in Africa’s innovation ecosystem. Less than 2% of venture funding currently goes to female founders,and under 30% goes to African founders, despite data showing that locally led and diverse teams often generate stronger financial and impact outcomes. Delta40 positions itself as a response to that imbalance by backing founders early and deeply, not just financially.
Institutional backers include the Soros Economic Development Fund, FMO, GIZ, Autodesk Foundation, Rockefeller Foundation, Allan & Gill Gray Philanthropies, Livelihood Impact Fund, Small Foundation, Lemelson Foundation, Factor(E) Ventures, and Skoll Foundation. The firm also worked with Wilson Sonsini to design its legal and financing structure.
“Delta40 exemplifies the kind of bold, locally-led innovation that is essential to building inclusive economies and environmental resilience across Africa,” said Georgia Levenson Keohane, CEO of Soros Economic Development Fund.
FMO’s Andrew Shaw added that Delta40’s approach aligns with the development bank’s focus on market creation: “Pairing appropriate capital with hands-on support helps founders build resilient businesses across energy, food systems, and financial inclusion.”
To date, Delta40 has invested in and supported 16 companies, including five ventures built directly within its studio.
With this final close, Delta40 plans to grow both its portfolio and the depth of its venture studio support.
“As an investor and operator, I’ve seen how difficult it is for founders to access both bold capital and hands-on support,” said Biola Alabi, Partner, Investments at Delta40. “Delta40 delivers both.”
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