The September 2023 Intel® Liftoff African AI Hackathon highlighted Africa's growing AI capabilities and market potential. Partnering with Modus Africa, the event showcased pre-seed to series B stage startups using AI to solve regional challenges. Here's an insight into Modus Africa's investment approach and the exciting AI landscape in Africa for 2024.
Modus Africa
We interviewed André Jr. Ayotte, Modus Capital Partner, about Africa's deep-tech ecosystem.
What is Your Investment Focus in Startups for 2024?
We invest in startups where the latest available technologies can solve massive problems. We perceive the African landscape as an imminent market for the adoption of AI/ML in solving both local and global problems. It is challenging to answer the basic needs of the African population in the context of a demographic boom and limited funding by applying current models of development.
What Are the Emerging Opportunities in African Markets?
In a continent with great leapfrogging capabilities, investing and applying new technologies is therefore one of the most reliable ways for a prosperous Africa, even allowing the continent to then export trained and fine tuned solutions to the world. We see great opportunities for startups powered by deep tech within fintech, healthtech, edtech, cybertech and Agri/ClimateTech especially. As an example, the African market is poised to be, in 2030, the 2nd healthcare market just behind the United States and we are now seeing the emergence of new ways of providing healthcare to the masses where AI-based solutions enhance the existing human/material resources.
Those solutions are not only driven by gains in efficiency or quality as compared to some markets where heritage facilities are doing "good enough” but are also driven by the emergencies in providing access to basic needs of a fast-growing population.
What Challenges Do We Anticipate in Deep Tech Investment in Africa?
Some challenges we foresee investing in deep tech in Africa are a weaker infrastructure (vs global standards), a nascent ecosystem when it comes to R&D support and overall funding limitations for early-stage startups. We positioned ourselves as a strategic tech lead investor in the African ecosystem as we have been able to gather in-house and external resources to be able to conduct in-depth tech due diligence and also support the specific needs of deep tech founders. This allows our network to learn from and leverage our tech & commercial due diligence for co-investments at the initial investment and also when we follow up on our existing portfolio companies.
How Are We Expanding Our Deep Tech Influence in 2024?
Part of our 2024 agenda is also to further grow our partnerships to develop the Deep Tech ecosystem in Africa with global leaders and put in place R&D programs/tools to foster a growing deep tech ecosystem.
MicroFuse Technologies
Among the participants in the September 2023 Intel® Liftoff African Development Sprint AI Hackathon, MicroFuse stood out as a notable African AI startup, showcasing its innovative capabilities and potential in the AI domain. Here’s what founder, Emmanuel Ugwu had to say about their achievements and future outlook.
What was the most significant development or trend in your specific specialization during 2023?
In 2023, the most significant development for MicroFuse Technologies was the seamless integration of cutting-edge AI algorithms into our solutions, particularly Cipher and Cognirra. This breakthrough has redefined the landscape of healthcare and mental wellness, propelling us toward a future where AI is not just a tool but an essential partner in personalized healthcare and well-being.
What do you expect will be the major driving factors or trends in your industry in 2024?
Looking forward to 2024, we anticipate several driving factors within AI and ML in the HealthTech industry. Collaboration will take center stage as organizations recognize the power of shared knowledge and resources. Ethical considerations in AI practices will gain prominence, ensuring responsible and transparent use of technology. Furthermore, sustainability will emerge as a key trend, with a focus on developing AI solutions that contribute positively to the environment and society.
Three Key Messages about the African AI Ecosystem:
Focused Investment: Modus Africa targets startups using cutting-edge tech to solve major problems, viewing Africa as a key market for AI/ML solutions.
Sector Opportunities: Significant growth potential in sectors like fintech, healthtech, and Agri/ClimateTech, with AI playing a pivotal role in advancing healthcare and other services.
Overcoming Challenges: Despite infrastructural and funding challenges, Modus Africa is poised to bolster the deep-tech ecosystem through strategic investments and partnerships in 2024.
Join Intel® Liftoff and launch your innovation
Consider participating in Intel® Liftoff for Startups to capitalize on the trends outlined in this report. Intel's virtual accelerator program provides early-stage tech startups with access to Intel's technological leadership and resources.
Turn insights into action by aligning your startup with the industry's leading edge.