Nairobi, Kenya – The Angel Leads Programme, supported by the UK-Kenya Tech Hub and run by ViKtoria Ventures, has published its Corporate Venture Capital (CVC) Report.
The report, titled ” State of Play in Kenya”, is the first comprehensive study on how Kenyan companies can become key investors and partners in growing the country’s innovation economy.
How startups raise funds in Kenya, Africa
The report came at a time when startups in Kenya are facing a pressing funding gap.
According to the African Development Bank, African early-stage companies lack a total of $194 billion (KSh 25.1 trillion) in funding per year, equivalent to approximately 7% of the continent’s GDP.
Despite Kenya’s position as one of Africa’s leading startup centres, most founders are still heavily dependent on foreign capital as local funding opportunities are limited.
“Startups in Kenya have immense potential, but many struggle to get early-stage investment. The UK-Kenya Tech Hub is committed to bridging this gap through training, research and programmes such as the Angel Leads Programme so that more founders can find capital, customers and partners locally,” said Enos Weswa, Country Director of the UK-Kenya Tech Hub, during the launch attended by News 9.
Corporate venture capital has become a powerful driver for the growth of start-ups worldwide. The number of corporate investors has tripled in the last ten years, and CVC funding will reach $130 billion (KSh 16.8 trillion) in 2024, up from $70 billion (KSh 9.04 trillion) in 2017.
In Kenya, however, corporate investment remains limited to a few early-stage initiatives such as Safaricom’s Spark Fund and Chandaria Capital.
The report argues that Kenyan companies, with their market access, sector dominance in telecoms, fintech, FMCG and infrastructure, as well as their rapidly digitising customer base, are uniquely positioned to foster the growth of start-ups.
“The Angel Leads Programme is designed to build a pipeline of investors who can drive the next generation of Kenyan innovation while ensuring high financial returns. With CVC and angel investing, we are reducing dependence on donor funding and putting the future of Kenyan innovation in local hands,” Weswa added.
By moving from short-term sponsorship and brand building to patient, strategic CVC activities, companies can tap into new products, distribution channels and acquisition pipelines while strengthening the Kenyan economy.
Why Viktoria ventures releases CVC report
Stephen Gugu, co-founder of the African Angel Academy and director of ViKtoria Ventures, who presented the findings, said the report was not a theory but a guide.
“We spoke directly to companies and start-ups and analysed real-life examples. Whether it’s Safaricom Spark Fund leading the way, Centum exploring startup intersections, or Chandaria Capital combining family office and CVC models, the lesson is clear: corporate capital is multiplier capital when deployed with strategy and patience,” Gugu said.
The Corporate Venture Capital Report introduces a Corporate Venturing Readiness Assessment, a practical checklist for boards and leadership teams to assess governance, financial commitments and non-financial assets such as distribution networks, sourcing and proprietary data before launching or expanding CVC initiatives.
The report also emphasises the importance of collaboration in the ecosystem and recommends that companies co-invest with angel networks, VCs and other intermediaries to align expectations and ensure the growth and development of start-ups.
The report contains a clear call to action, CVC is about “securing the future, not short-term activities”
The report also warns that companies that use ecosystem engagement solely for brand PR are missing a major strategic opportunity. The early adopters of strategic CVC will be the first to enter new customer segments and acquire technologies.
ViKtoria Ventures has already trained and mentored dozens of angel investors through the Angel Leads Programme and the African Angel Academy, strengthening the local investment base in Kenya.
The organisation believes that CVC can further expand this base by creating co-investment opportunities that combine the scale of companies with the flexibility of angels.
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