Google’s Black Founders Fund alumni have raised $379m, created 6,000 Jobs- report

Despite Africa’s growing recognition as a hub for innovation, Black entrepreneurs continue to face substantial barriers, with access to capital remains a key challenge.

African startups raise less than 1% of global venture capital, and women-led and marginalised entrepreneurs are particularly underrepresented. Limited access to mentorship, networks, and markets exacerbates these difficulties, often hindering talented entrepreneurs from scaling their businesses. However, initiatives like the Black Founders Fund are driving systemic change.

In 2021, Google CEO, Sundar Pichai announced the plan to invest $1 billion over 5 years to support Africa’s digital transformation. Among other things, the company revealed, at that time, that the fund would cater for a plan to empower businesses to embark on their digital transformation and provide funding for nonprofits.

It also includes low-interest loans to help small businesses and equity investments in African startups. Other investment ideas include the Hustle Academy and Google Business Profiles and helping job seekers learn the skills they need through Developer Scholarships and Career Certifications.

Before that announcement, Google had launched the Black Founders Fund in 2020, following the impact of the COVID-19 pandemic on businesses around the globe. The Black Founders Fund program was created to address the systemic racial inequality in venture capital funding by providing equity-free grants and mentoring to early-stage Black-led high-growth businesses across Europe and Africa.

The fund includes a $5 million fund for black founders in the United States, a $2 million fund for Europe and a $3 million fund for Africa. 

The $3 million Google fund is allocated across a pipeline of 50 investable startups in Africa through non-dilutive funding, meaning founders do not relinquish ownership in their company in exchange for this funding.

Over 800 companies applied for the first cohort in 2022. Out of that, 30 startups were selected for the first cohort to receive part of the fund. All 30 startups that made the list will each receive up to $100,000 in non-equity funding and up to $120,000 in Ads grants. They will each also have access to $100,000 in Cloud credits.

The year after, Google named 25 African startups for the third cohort. At that time, Google promised to help the selected startups fuel growth, expand into new markets, and boost economic opportunities and job creation. Out of the 25 African startups, Nigeria led the pack with 10, followed closely by Kenya with 5.

Yesterday, Google organised the Black Founders Fund Alumni Summit at the iHub in Nairobi, to unveil the BFF Impact Report, a document that highlights the significant progress and success of Black-led startups across Africa.

The Black Founders Fund impact report

The annual event brought together 45-50 alumni from across the continent including Kenya, Nigeria, South Africa and Uganda to celebrate their achievements and discuss the future of Africa’s digital economy, with a spotlight on the role of these startups in driving innovation, job creation, and scalable business growth.

The BFF Impact Report offers a comprehensive look at the remarkable impact that targeted support for Black entrepreneurs has had on the African tech ecosystem. The report reveals that BFF-supported startups have collectively raised $379 million, created more than 6,000 jobs, and experienced 61% faster growth than their peers, underscoring the importance of strategic investment in fostering sustainable innovation.

Through non-dilutive funding, mentorship, and networking, the Black Founders Fund has empowered entrepreneurs to overcome barriers, scale their businesses, and contribute to Africa’s digital transformation.

This demonstrates the pivotal role of the program in strengthening the continent’s startup ecosystem, enabling businesses to compete globally and attract significant investment.

Key Highlights from the BFF Impact Report:

• Kenya leads in follow-on funding with 26 BFF-supported startups cumulatively raising nearly $100 million, employing 1,073 people.
• 6,000+ jobs created by BFF-supported startups, with 7x growth in employment since 2021.
• $379 million raised collectively by BFF companies, including $61 million raised by 21 AI-first startups.
• 61% faster growth for BFF companies over 3 years compared to industry peers.
• 50.4% of leadership roles in African BFF companies are held by women, with 68% of startups being women-led or having a female co-founder.

Olumide Balogun, Country Director, West Africa, Google for Startups, remarked:

“The Black Founders Fund is not just about financial support—it’s about creating an ecosystem of innovation, job creation, and opportunity. The BFF Impact Report reflects the incredible progress Black entrepreneurs have made, and how the right resources can empower them to lead Africa’s digital future. The impact we are seeing today will set the stage for an even more vibrant African tech landscape tomorrow.”

The BFF Impact Report also highlights the diverse industries where BFF startups are making significant contributions, including Fintech, Healthtech, Agritech, and AI. By providing entrepreneurs with the resources and connections they need, the Black Founders Fund is helping nurture the next generation of tech leaders shaping Africa’s digital future.

Mariama Boumanjal, Black Founders Fund Manager Europe, Google for Startups, said, “The BFF Impact Report proves that with the right support, Black founders can not only overcome these challenges—they can lead the way in innovation, job creation, and economic development.”

The Black Founders Fund Alumni Summit also featured discussions with key industry leaders, investors, and policymakers about the ongoing opportunities and challenges facing African tech startups. The event provided valuable networking and collaboration opportunities for attendees to build the connections that will drive future growth in the ecosystem.

The summit also included a gala dinner to highlight the achievements of the BFF alumni and strengthen the connections between investors, startups, and key ecosystem players.