Sony Group, the Japanese tech giant and creative entertainment company, has announced the launch of a new fund to invest in African entertainment startups. The fund, called Sony Innovation Fund: Africa (SIF: AF), will focus on early-stage startups in gaming, music, film and content distribution.
Sony’s venture arm expands to Africa
Sony Ventures Corporation (SVC), the subsidiary that manages all of Sony’s venture investment activities, has established SIF: AF as its latest endeavor to support technology businesses across markets and stages. SVC has previously launched funds such as Sony Innovation Fund (SIF), Sony Innovation Fund 3 (SIF3) and Innovation Growth Fund (IGF) to back emerging technology companies in various sectors like entertainment, robotics, AI, mobility, fintech, healthcare, logistics and SaaS.
SVC has made more than 100 investments in consumer and enterprise-facing businesses from all these funds. However, this is the first time that SVC has created a fund focused on African entertainment startups.
Why Africa?
Africa has a vibrant community of creators and entrepreneurs looking to invent new ways to enhance entertainment experiences for audiences. According to a report by games market data providers Newzoo and Carry1st, a South African publisher of games and digital content, the gaming market in Sub-Saharan Africa is set to surpass $1 billion by 2024.
Similarly, video-on-demand subscriptions in Africa are projected to hit 13.94 million by 2027, up from 4.89 million at the end of 2021, with revenues tripling from $678 million to $2 billion in the same period.
Sony Group sees these trends as an opportunity to tap into the potential of African entertainment startups and help them grow with its expertise and resources. The company has earmarked $10 million for SIF: AF, which will be deployed over the next three years.
What kind of startups will SIF: AF invest in?
SIF: AF will target early-stage startups in gaming, music, film and content distribution that are creating innovative solutions for the African market and beyond. The fund will also look for startups that have a strong social impact and align with Sony’s mission to fill the world with emotion through the power of creativity and technology.
The fund will offer not only capital but also mentorship, networking and strategic partnerships to its portfolio companies. SIF: AF will leverage Sony’s global network of experts, partners and customers to help African entertainment startups scale their businesses and reach new audiences.
How to apply for SIF: AF?
SIF: AF is currently accepting applications from interested startups through its website. The fund will evaluate the applications based on criteria such as team, product, market fit, traction and scalability. The fund will also conduct due diligence and negotiate terms with the selected startups before making an investment.
SIF: AF aims to invest in 10 to 15 startups over the next three years. The fund will typically invest between $100K and $500K per startup, depending on the stage and valuation of the company.
