EXPERT OPINION | ‘Africa is the Most Exciting Market in the World and We’re Only at Day One,’ Says Lexi, General Partner, Norrsken22 Tech Growth Fund

In the ever-evolving world of venture capital, few stories are as compelling as Lexi Novitske’s journey into the African tech landscape.

As the General Partner of Norrsken22, an African tech growth fund based in Lagos, Nigeria, and South Africa, Lexi has witnessed firsthand the dynamic growth of the continent’s technology sector.

Her experience offers valuable lessons for anyone interested in understanding the current and future landscape of tech investment in Africa.

Norrsken22 list of successful investments in African tech startups includes:

• NALA – A Tanzanian fintech which raised $40 million in 2024 following 10x revenue growth and ~500K in user growth

• OneOrder – An Egyptian restaurant management tool which raised $16 million in Series A funding in 2024

https://www.oneorder.net/assets/videos/oneorder_en.mp4

• Shara – A Nigerian app offering collateral-free loans to small and medium businesses and has raised over $6 million to date


• Sabi – A Nigerian supply chain services provider which recently raised $6 million

• AutoChek – A Nigerian automotive app offering auto solutons such as loans, maintenance / after sales services, warranty solutions, marketplaces and has raised over $17 million so far

• Smile ID – An African-focussed leading ID verification service which raised $20 million and accounts for 4% of all digital ID checks with over 75 million ID verifications

• TymeBank – The first digital bank to break even in Africa and having raised over $300 million and have a customer base of over 10 million in South Africa

Lexi’s path to venture capital in Africa wasn’t straightforward. Originally, she followed a traditional finance career path in the U.S., working in investment banking and then at a hedge fund. However, her decision to take a sabbatical to travel around Africa turned into a transformative experience. What began as a brief adventure evolved into a deep commitment to the continent.

Lexi’s story underscores the importance of being open to unexpected opportunities and how personal experiences can pivot professional careers in unforeseen ways.

When Lexi started her investment journey in Nigeria, the tech scene was vastly different from today’s vibrant landscape.

Back then, major tech success stories were limited to telecom companies and early players like Interswitch. This nascent stage of the tech ecosystem provided a unique opportunity for early-stage investments. Lexi’s move to angel investing was driven by the realization that while early-stage funding was available, there was a significant gap in Series A and beyond. This insight highlights the critical role of funding at different stages of a company’s growth and the need for investors to adapt their strategies as ecosystems evolve.

Norrsken22 was born out of a collaboration with:

• Natalie Kolbe
• Hans Otterling, and
• Niklas Adalberth

inspired by their experiences in the Nordics.

The fund aims to address the gap in growth-stage investments, particularly from Series A onwards. This initiative reflects a strategic approach to investing, focusing on companies that are ready to scale and expand across Africa.

In November 2023, Norrsken22 announced the its first fund’s fundraising of $205 million and said it intends to make investments in approximately 20 startups across the continent, with individual investment sizes ranging from $10 million to $16 million.

Norrsken22’s connection with the Norrsken Foundation, which has been active in Africa, provides a solid foundation for creating a next-generation tech ecosystem on the continent.

Key Investment Focus Areas

Norrsken22 has targeted several critical sectors:

• Fintech: The fund is particularly interested in payments and cross-border transactions, recognizing the inefficiencies in these areas and the potential for high-impact solutions
• Supply Chain: Addressing inefficiencies in the supply chain sector offers both high margin opportunities and significant improvements in trade efficiency across Africa
• Emerging Sectors: While still developing, sectors like ed-tech and e-health are on the radar for future investments as they mature

Understanding these focus areas can provide insights into the broader trends and opportunities within the African tech market.

Adding Value Beyond Capital

Norrsken22 doesn’t just invest money; it adds significant value through strategic guidance and operational support.

The fund’s team often takes board seats and collaborates closely with founders on strategy. Their presence in key tech hubs across Africa, like Cairo (Egypt), Lagos (Nigeria), Nairobi (Kenya), Cape Town, and Johannesburg (South Africa) allows them to assist with business development, regulatory issues, talent acquisition, and more. This approach highlights the importance of active engagement in the growth and success of portfolio companies.

Navigating Market Challenges and Future Outlook

Recent capital shortages and economic headwinds have impacted the African investment landscape.

However, there’s a growing rebound for high-quality companies that demonstrate strong growth and profitability. Lexi’s optimism about Africa’s tech future reflects the continent’s vast potential and the significant opportunities that lie ahead. The median age in Africa and the rapid urbanization present a promising backdrop for tech innovation and investment.

Looking ahead, Norrsken22 plans to make several more investments by the end of the year, including both large and early-stage opportunities. This forward-looking strategy indicates the fund’s commitment to staying agile and responsive to market developments.

Lexi Novitske’s journey and insights offer a valuable perspective on the growing tech ecosystem in Africa.

“I’m investing in Africa because I think it is the most exciting market in the world, and I think we’re only at day one. I think the future of the world will be in Africa – the median age is 25, China for example is 39. And if we look at this picture in a couple of years time it is going to be even more dramatic,” she said.

“It is a great investment opportunity and a fantastic opportunity to make life better for the billions of people calling Africa home.”

Lexi’s experiences highlight the importance of being adaptable, understanding market needs, and actively contributing to the development of emerging sectors. As Africa continues to evolve as a tech hub, investors and entrepreneurs alike can draw inspiration from Lexi’s approach and the opportunities that lie ahead.