Africa is the next global tech and Artificial Intelligence (AI) powerhouse, according to Cape Town-born Kevin Dillon, a veteran of Silicon Valley and European venture tech capitalist
He also has UK experience for the past 20 years in venture capital for technology (he runs and founded Europe's largest venture tech fund).
Dillon spoke to ITWeb Africa in a recent interview sharing his views on what’s needed to move ventures from start-up to scale-up and successful exit, drawing on his four decades of international deep tech venture capital experience.
The interview also centred on Dillon’s new Africa Bridge Fund, which aims to connect sub-Saharan African startups with growth capital and expertise from Europe and Silicon Valley.
During the discussion he highlighted the need to develop a thriving tech ecosystem in Africa, starting particularly in South Africa and Kenya where greenshoots are showing, driven by exceptional talent and entrepreneurial culture, though access to capital remains a significant challenge.
Detailing the rationale behind the African Bridge Fund, Dillon said: “The new fund was built upon the principle of bridging African start-ups that are in sub-Saharan Africa and South Africa, Kenya to the investment and tech communities around the world – particularly in Silicon Valley and Europe.
“Connecting those start-ups to growth capital, international capital and expertise in Europe and Silicon Valley in the US, so that's the premise that the fund is built upon.”
Dillion went on to emphasise the need for a syndicate of investors to provide financial support and strategic connections, drawing parallels to the European tech scene in the late 90s.
Furthermore, Dillion also underscored the role of tech start-ups in Africa's digital economy, with a focus on utilising technologies like AI and Cloud Computing.
According to Dillon, emerging technologies like AI will be critical in accelerating innovation and growth of African start-ups.
Regarding the future of tech in Africa, Dillon outlined his vision for a mixed-for-profit fund that will not only seek profitability but also reinvest in impact-driven initiatives.
He went on to say a key focus will be on establishing a foundation to train and connect young African tech entrepreneurs with global venture capitalists and technologists. He believes that Africa is on the brink of a tech revolution.
“I've been fortunate enough, I'm from Cape Town originally, but I've been in deep tech in Silicon Valley and in London, Paris, Munich, and other parts of Europe for a long time now, more than 40 years.
“So what I'm seeing in the start-ups in South Africa and Sub-Saharan Africa, they're growing very nicely. They are run by exceptionally talented entrepreneurs who are developing companies and who have to do more with less,” he said.
Turning to the role of tech start-ups in Africa's digital economy, Dillon discussed how tech start-ups are crucial in developing Africa's digital economy by creating solutions that enhance the efficiency of established businesses.
He noted that advancements in artificial intelligence and open-source models democratise technology access, allowing African start-ups to innovate uniquely for their markets.
Nonetheless, Dillon also pointed out the need for improved digital infrastructure to support this growth.
He explained: “They have less access to high bandwidth transaction speeds, for example. They have less data center access than other companies that are developing things in, say, London or Palo Alto, California, the heart of Silicon Valley.
“So they're doing more with less. They have a tremendous entrepreneurial culture and spirit. And so we see real talent there.”
Dillion went on to say: “Across the continent obviously telecommunications and access data centers and the infrastructure that underpins a digital economy is obviously a requirement that has the benefits of the digitised, developed applications and solutions like artificial intelligence-led solutions.
“So access and telecommunications, access in particular, fiber, last mile connections, all of that is a key building block for Africa to move forward.”
Share