Antler Backs 100 New African Startups in Five Years
Quick Reads
- Antler targets 100 African startups for investment within the next five years.
- Meanwhile, CEO Magnus Grimeland announced the plan at an AI summit in Lagos.
- Additionally, the firm sees opportunities in EVs, renewable energy, battery storage and data centres.
- Globally, Antler has backed approximately 2,000 companies.
- Furthermore, qualifying startups can receive $100,000 at a $1 million valuation.
Antler targets 100 African startups for investment within the next five years. Consequently, the global venture capital firm plans to expand its support across Africa. Founder and CEO Magnus Grimeland announced the plan at the Building and Funding Africa’s AI summit in Lagos. According to Punch, Grimeland spoke alongside OpenAI executives Emmanuel Lubanzadio and Tom Duff Gordon.
Grimeland sees significant opportunities across several emerging industries. These include electric vehicles, renewable energy, battery storage, electricity infrastructure and data centre technology. In particular, he described Nigeria’s electric vehicle market as “a huge opportunity.” He also highlighted China’s rapid EV adoption and Vietnam’s growing electric mobility sector.
Furthermore, he connected electric mobility with energy storage and renewable power. Meanwhile, artificial intelligence will also increase electricity demand, he noted. As a result, entrepreneurs could develop businesses across the electric vehicle supply chain. These opportunities include vehicle production, charging stations and supporting power systems.
Global market trends further support his assessment. According to the International Energy Agency, electric car sales exceeded 17 million in 2024. This represented more than 20 per cent of new car sales. Moreover, China alone recorded over 11 million electric car sales.
Consequently, Nigeria could benefit from this growing market. For instance, opportunities exist for vehicle assemblers, charging developers, battery suppliers and logistics operators. However, several challenges continue to slow adoption. These include high vehicle costs, unreliable electricity and limited charging infrastructure. Additionally, access to financing remains a significant challenge.
Beyond electric mobility, Grimeland identified energy infrastructure as essential to Africa’s AI economy. He explained that major technological shifts often require substantial infrastructure investments. Subsequently, software opportunities typically emerge alongside these developments.
According to the International Energy Agency, data centres consumed approximately 415 terawatt-hours in 2024. This represented roughly 1.5 per cent of global electricity consumption. However, demand could increase significantly over the coming years. The agency projects consumption could exceed 945 terawatt-hours by 2030. This would represent more than double the 2024 figure.
Therefore, African entrepreneurs could explore several infrastructure opportunities. These include power generation, battery storage, smart grids and data centre services. Ultimately, such investments could support the continent’s expanding digital economy.
Additionally, Grimeland outlined three ways African businesses could participate in the AI economy. These include infrastructure, software and foundational models. Alternatively, traditional businesses can use AI to improve productivity.
However, he cautioned founders against developing simple applications that depend entirely on existing AI models. Such products may struggle without a lasting competitive advantage. Instead, entrepreneurs should apply AI to specific industry challenges. For example, these include fleet management, route optimisation and demand forecasting.
Meanwhile, OpenAI executive Emmanuel Lubanzadio challenged the perception that Africa only consumes artificial intelligence. Rather, he argued that African developers already build technology-driven businesses. He highlighted OpenAI’s developer community initiatives across Nigeria, Kenya and South Africa. Through these initiatives, local ambassadors connect developers and strengthen technology communities.
Furthermore, Lubanzadio mentioned the Codex Challenge, organised through OpenAI’s Open Academy with Andela. According to him, participants developed impressive solutions within two weeks. Therefore, founders do not need to build foundational models themselves. Instead, they can use existing AI tools to solve practical problems. These opportunities span transport, healthcare, agriculture, energy and manufacturing.
On the investment front, Antler has backed approximately 2,000 companies worldwide. Meanwhile, Grimeland expects the firm to support at least 100 additional African startups within five years. He explained that Antler identifies promising founders during the earliest stages. Additionally, the firm aims to maintain long-term relationships with its portfolio companies.
Similarly, Antler Africa partner Anil Atmaramani highlighted the firm’s investment priorities. He said Antler values founders with strong industry knowledge and execution capabilities. Furthermore, qualifying startups can receive $100,000 at a $1 million valuation. However, founders must first demonstrate that their businesses are investable.
Overall, the planned investment expansion could create opportunities across several African industries. These include electric mobility, energy infrastructure and logistics. Nevertheless, Antler has not announced specific investment commitments to Nigeria’s automotive or logistics sectors.
