Washington, D.C. March 25, 2024—IFC is investing $10.5 million in a new fund by 4DX Ventures, a New York-based venture capital firm focused on supporting early-stage African technology companies across a broad set of sectors, including fintech, e-commerce, edtech, climate tech, and health tech.
IFC's investment in 4DX Ventures Fund III will come from IFC's $225 million venture capital platform, which was launched last year to strengthen emerging VC ecosystems and invest in early-stage companies in Africa, the Middle East, Central Asia, and Pakistan.
Africa is among the regions least served by venture capital, receiving just 2% of global venture deal volume in the third quarter of 2023. Access to capital on the continent has been further exacerbated by a slowdown in global venture capital investment. Tech ecosystems are nascent, or even nonexistent, outside of more established markets such as Egypt, Kenya, Nigeria, Senegal, and South Africa.
"IFC and 4DX Ventures share the commitment to supporting tech entrepreneurs with innovations that will help Africa leapfrog in critical areas such as climate, health care, fintech, e-commerce, and education," said Walter Baddoo, Co-Founder and General Partner of 4DX Ventures. "We look forward to partnering with IFC to help promising tech startups build transformative businesses and realize sustainable development impact on the continent."
4DX's new fund will invest in companies with tech solutions that can improve productivity, efficiency and competitiveness across Africa. The firm's first two funds invested in companies such as Egypt-based e-commerce platform MaxAB, an IFC portfolio company; Ghana-based health tech firm mPharma; and Kenya-based B2B e-commerce platform Wasoko, formerly known as Sokowatch.
"By supporting the development of tech ecosystems in emerging markets, IFC's venture capital platform aims to improve access to key services, boost business competitiveness, and promote job creation through digital transformation," said Mohamed Gouled, Vice President of Industries at IFC. "Our investment in venture funds such as 4DX Ventures will help African entrepreneurs access more financing and resources they need to scale tech innovations and bolster sustainable growth across the continent.
In addition to providing capital, IFC will work with 4DX Ventures to implement their environmental and social management system.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
About 4DX Ventures
4DX Ventures is a Pan-Africa-focused venture capital firm founded in 2017 by Walter Baddoo and Peter Orth in New York City, with additional presences in Accra, Cairo, and Nairobi. The firm partners with extraordinary entrepreneurs who are building companies that will usher in Africa's technology revolution. For more information, visit www.4dxventures.com
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