As YC retreats from Africa, alumni launch accelerators to fill the gap

Y Combinator (YC), a prominent accelerator, has reduced its focus on developing markets, including Africa, leading to the emergence of local accelerators. One such initiative is Accelerate Africa, launched by Iyinoluwa Aboyeji, co-founder of YC-backed Flutterwave. The accelerator aims to become the 'YC of Africa', helping startups connect with local banks, telcos, and other corporations through mentorship, resources, and services. However, no African startup made it into YC's most recent summer batch, and the three batches prior had just three startups each from the continent.

Another accelerator, GoTime AI, based in Lagos, Nigeria, is focusing on AI startups in Africa. The accelerator, launched by Olugbenga Agboola, co-founder and CEO of Flutterwave, aims to build AI products at a lower cost than in Western markets, making them more attractive to acquirers. Unlike Accelerate Africa, GoTime AI invests up to $200,000 in exchange for 8% equity in the startups it accelerates. Both accelerators are seen as a response to the decline in foreign interest and investment in African startups.

Key takeaways:

Y Combinator has reduced its focus on developing markets, including Africa, leading to local accelerators emerging to fill the gap.
Accelerate Africa, launched by Iyinoluwa Aboyeji, co-founder of YC-backed Flutterwave, aims to become 'The YC of Africa' and has already built a portfolio of 20 startups.
Despite the decline in foreign interest, Aboyeji believes Africa’s startups can build a local capital base and forge partnerships with local banks, telcos, and others.
GoTime AI, a new accelerator in Nigeria, aims to support founders developing AI products in Africa, positioning itself as a stepping stone for AI startups to access opportunities from early-stage investors.

As YC retreats from Africa, alumni launch accelerators to fill the gap | TechCrunch

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