Sony Ventures Corporation, a subsidiary of Sony Group, has announced the launch of Sony Innovation Fund: Africa (SIF: AF), a program aimed at supporting the growth of entertainment businesses in Africa. The Tokyo-based multinational conglomerate has allocated $10 million for early-stage startups in the gaming, music, film, and content distribution sectors.
Key Takeaway
Sony Ventures, through its Sony Innovation Fund: Africa, is investing
0 million in African entertainment startups, with a focus on gaming, music, and content distribution. This investment will provide much-needed support to the continent’s entertainment tech ecosystem, which has historically received limited venture capital funding.
A Boost for African Entertainment Tech Startups
This new fund from Sony Ventures will provide a much-needed boost to the continent’s entertainment tech startups, which have struggled to receive consistent venture capital investment over the years. In 2022, these startups accounted for only 0.9% of Africa’s total venture capital investments, despite the enormous potential in gaming, music, movies, and content distribution.
Focus on Gaming, Music, and Content Distribution
Gaming is a particularly promising sector in Sub-Saharan Africa, with the market set to exceed $1 billion by 2024, according to data from games market research firms. Additionally, video-on-demand subscriptions in Africa are projected to reach 13.7 million by 2027, with revenues tripling to $2 billion. Sony Ventures aims to tap into these growing markets by investing in startups that are innovating in gaming, music, and content distribution.
Collaboration and Support for African Creatives
Sony Ventures CEO, Gen Tsuchikawa, emphasized the company’s commitment to the entertainment field and its mission to fill the world with sentiment through the power of creativity and technology. The fund will not only provide capital but also offer support to creators and entrepreneurs in Africa through technologies, collaboration, intellectual property, marketing, and other resources.
Partnerships and Expansion Plans
Sony Ventures has initiated due diligence on several startups but hasn’t disclosed any specific details. The fund plans to start its work in South Africa, Kenya, Nigeria, and Ghana initially but is open to expanding the scope of the project in the future. The company is also collaborating with the International Finance Corporation (IFC) to further support the growth of the African entertainment industry.
