New York-based Modus launches $75M Modus Africa fund

New York-based venture platform Modus has launched Modus Africa, a $75-million Sustainable Development Goals (SDG) focussed venture capital fund.

Led by Vianney Mathonnet and Andre Jr. Ayotte, the fund will focus on investing in artificial intelligence (AI) and blockchain startups across sub-Saharan Africa. It is expected to invest in 45 startups at the seed+ stage and will close in the first quarter of 2023, as per a report by Forbes Middle East.

The idea is to nurture the growth and development of Africa’s local technology talent and early-stage startups, which grant significant importance to the growth of AI and blockchain applications, said the report.

"We believe there will be a great deal flow within countries like Kenya, Nigeria, and South Africa. We are also exploring new regions and searching for key partnerships to enter those markets, including the Democratic Republic of Congo, Niger, and others in Francophone Africa," Modus told Forbes Middle East.

In last 18 months, Modus has expanded to Abu Dhabi, Cairo, and Riyadh. It is supported by Mubadala's Hub71, USAID, and other leading institutions.

As per Andre Jr. Ayotte, Partner at Modus Africa, AI could potentially add $1.5 trillion to the African economy by 2030. The said share would represent 50% of Africa's gross domestic product.

Startups utilising AI and blockchain technologies will not only accelerate Africa's fourth industrial revolution but also deliver strong financial returns, coupled with immense impact on sustainable development, Modus said, as per the report.

Africa has one of the strongest blockchain adoption rates worldwide. The continent has the potential to surpass 200 million new blockchain users in the next four years, Modus said.