In this special edition of **Straight Talk Africa**, we delve into the **dynamic world of tech startups in Africa** and their innovative use of **Artificial Intelligence (AI)**. Join us as we explore:

### The Role of Tech Giants
**Tech giants like Google and Microsoft** are stepping up to support African startups in their AI journey. Their contributions are vital in fostering an environment ripe for innovation and growth.

### Founders' Perspectives
Founders from various startups share their insights on the **ethical and strategic applications of AI**. They emphasize the importance of using AI responsibly to drive **sustainable development** and address local challenges.

![AI in Africa](https://gdb.voanews.com/3c4ab149-c5cd-4b8e-a4d7-d4440290fa33_w250_r1.png)

### Key Discussions
- The significance of **ethical AI use** in enhancing business operations.
- Strategies for leveraging AI to improve **efficiency and reach** in the African market.
- How startups are navigating the unique challenges of implementing AI solutions.

This edition not only highlights the **potential of AI** in transforming businesses but also sheds light on the **commitment of tech leaders** to foster a supportive ecosystem for startups across the continent.

In this special edition of Straight Talk Africa we’ll examine how tech startups are using "Artificial Intelligence.” Tech giants, such as Google and Microsoft, weigh in on how they support startups using AI. And founders discuss the importance of ethical and strategic uses of artificial intelligence.


Unleashing Innovation: How African Tech Startups are Harnessing AI

## Editor’s Note
In 2024, Crunchbase News interviewed several **active startup investors** in the **artificial intelligence** sector. Below are the key highlights from those interviews.

## Record-Breaking Funding Year
This year marked a **breakout year** for funding to AI companies, with **venture funding** reaching **$99.6 billion** through mid-December, a remarkable **80% increase year over year**. Approximately **one-third** of this funding was directed towards **foundation model companies**.

## Focus on AI Applications
Investors are now pivoting their focus towards **AI applications** that can significantly impact various sectors. Rory O’Driscoll from **Scale Venture Partners** noted that **80%** of their new investments are centered around AI, moving beyond just infrastructure to applications that drive substantial sector changes.

## Dominance of Applied AI
In 2023, the conversation largely revolved around the **infrastructure** needed for AI, but in 2024, investors are keen to explore **applied AI**. O’Driscoll emphasized the importance of determining which applications will succeed first, as enterprises become more accustomed to the **probabilistic nature of AI**.

## Emergence of Assisted AI
The trend towards **assisted AI** is growing, with investors like Sundeep Peechu from **Felicis Ventures** predicting a rise in services that combine automation with human oversight. New technologies such as **multimodal AI**, which integrates various media types into cohesive applications, are also on the horizon.

## New Investment Funds
**Menlo Ventures** has launched a **$100 million AI-focused fund** in partnership with **Anthropic**, aimed at backing **early-stage AI startups**. This fund provides startups with free access to **Anthropic’s models** and valuable leadership opportunities.

## Boosting Productivity and Revenue
AI is not just a feature; it's becoming integral to business operations. Investors like Dharmesh Thakker from **Battery Ventures** see companies increasing their growth rates significantly by applying generative AI across various business functions. Additionally, generative AI is shifting service revenue into product revenue, offering a new avenue for growth.

## Vertical Opportunities
With the dominance of **SaaS** technology now waning, AI is opening up new vertical opportunities that were previously overlooked. Investors are keenly analyzing how AI can enhance each vertical, leading to potentially lucrative markets.

## The Future of AI Investment
While funding is increasing, it may take several investment cycles for the full potential of AI to be realized. O’Driscoll warns of a potential correction in the next few years but believes that in a decade, AI will be central to all software development.

![AI Funding Growth](https://news.crunchbase.com/wp-content/uploads/Forecast-AI.jpg)

### Related Articles
- [Inside Scale Venture Partners’ Pivot From SaaS To AI](https://news.crunchbase.com/ai/saas-to-ai-pivot-scale-venture-odriscoll/)
- [Where Active AI Investor Felicis Is Placing Its Bets](https://news.crunchbase.com/ai/felicis-ai-investments-sundeep-peechu/)
- [Menlo Ventures And Anthropic Open $100M Fund](https://news.crunchbase.com/ai/menlo-ventures-anthropic-openai-fund/)
- [Battery Ventures Sees AI’s Massive Impact On Tech, And It’s Here Already](https://news.crunchbase.com/ai/artificial-intelligence-tech-dharmesh-thakker-battery-ventures/)

This was the breakout year for funding to AI companies. Venture funding through mid-December reached $89 billion — up 60% year over year — Crunchbase data shows. A third of that funding went to foundation model companies. 

Unlocking the AI Gold Rush: Insights from Top Startup Investors in 2024

### Mindgrove Technologies Secures Major Funding

Mindgrove, a **Chennai-based semiconductor startup**, has successfully raised **USD 8 million** in a Series-A funding round, led by **rocketship.vc** and **Speciale Invest**, with additional contributions from **Mela Ventures** and existing investors such as **Peak XV**, **Nishchay Goel**, and **Whiteboard Capital**. New investor **Anshul Goel** has also joined this funding endeavor.

Founded in **2011** by **Shashwath** and **Sharan Srinivas Jagathrakshakan**, Mindgrove is focused on developing **high-performance SoCs (system-on-chips)** tailored for both the **Indian** and **global markets** at competitive prices. The newly acquired funds will facilitate the **commercial launch** of its **Secure IoT microcontroller SoC**, expand the team, and further enhance its engineering capabilities.

In addition to this funding, Mindgrove has been awarded **USD 15 crore** under India's **Design Linked Incentive (DLI)** scheme to develop a **Vision SoC** aimed at **edge computing**.

**Shashwath T R**, CEO of Mindgrove Technologies, expressed, "The recent investment and the DLI scheme reaffirm confidence in our thesis and capabilities. The demand in India for **high-performance SoCs** with essential features for **security** and **edge computing** is growing. We have been actively working towards meeting this need and have made progress in bringing designed-in-India chips to the market."

Mindgrove has already unveiled a **prototype** of its **Secure IoT chip**, with **commercial sales** anticipated by **mid-2025**. The company, in collaboration with **IITM Pravartak Technologies Foundation** and **IIT Madras Incubation Cell**, aims to **double its workforce** from **40 to 100 employees** over the next two years.

**Vishesh Rajaram**, Managing Partner at Speciale Invest, stated, "We are proud to further strengthen our partnership with Mindgrove Technologies in their mission to revolutionize the global semiconductor industry with cutting-edge, indigenously designed solutions."

Similarly, **Sailesh Ramakrishnan**, Managing Partner at Rocketship.vc, remarked, "Mindgrove Technologies represents the future of India's technology sector, with its innovative solutions tailored for the needs of a rising India."

According to the founders, the funds will be used for the commercial launch of its Secure IoT microcontroller SoC, team expansion, and enhancing its engineering capabilities further

Mindgrove Technologies Secures $8 Million to Propel Semiconductor Innovation in India

## Japan's New Initiative for Entrepreneurs

The **Japanese government** is taking significant steps to attract **foreign entrepreneurs** by easing the restrictions on **"startup visas"**. This initiative aims to promote the establishment of **high-tech companies** within the country.

![Startup Visa 2024-12-26](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fcms-image-bucket-production-ap-northeast-1-a7d2.s3.ap-northeast-1.amazonaws.com%2Fimages%2F4%2F6%2F1%2F7%2F48787164-10-eng-GB%2Fphoto_SXM2022101800002540.jpg?width=780&fit=cover&gravity=faces&dpr=2&quality=medium&source=nar-cms&format=auto)
*The Japanese government wants to encourage more foreign entrepreneurs to set up high-tech companies in Japan. (Photo by Mayumi Tsumita)*

Starting **December 2024**, a **two-year grace period** will be implemented for visa holders, allowing them ample time to meet the necessary eligibility requirements. Previously, this grace period was only applicable in certain municipalities, but now it will be available **nationwide**. This change is a strategic move by the government to **foster prominent startups** by attracting **foreign talent** specializing in **cutting-edge technologies**.

TOKYO -- The Japanese government will further ease restrictions on "startup visas" for overseas entrepreneurs planning to set up businesses in the cou

Japan's New Startup Visa Rules: A Game Changer for Foreign Entrepreneurs!

### Newcleo's Vision for the Future  
**Elisabeth Rizzotti**, cofounder and COO of **Newcleo**, recently shared insights with Business Insider about the startup's ambitious plans to dominate the European nuclear market. As Europe's only **nuclear unicorn**, Newcleo is gearing up for an **IPO** after achieving two critical milestones.  
   
![Elisabeth Rizzotti, cofounder and COO of Newcleo.](https://i.insider.com/676058a627808b3289cd5656?width=700)  
   
### Key Milestones Ahead  
Newcleo aims to reach significant operational and technological milestones that will pave the way for its public offering. Rizzotti emphasized the importance of these milestones in establishing Newcleo as a leader in the **nuclear energy sector**.  
   
### The Nuclear Juggernaut  
With a focus on **sustainable energy solutions**, Newcleo is set to revolutionize the nuclear industry by offering innovative **small modular reactors** that promise safety and efficiency. Rizzotti's leadership is crucial as the company transitions into its growth phase and prepares for its IPO.  
   
Stay tuned as Newcleo continues to make waves in the nuclear sector, aiming to redefine energy production in Europe.

Newcleo's cofounder and COO says the startup, which is Europe's only nuclear unicorn, will IPO after hitting two key milestones.

Inside Newcleo: The Ambitious Nuclear Startup Poised for IPO Success

### Local Startup Landscape in 2024

2024 saw a **surge in food-related startups** that not only launched but also expanded their operations. Among these, several companies captured significant funding to propel their growth.

![Sugar Magnolia Brownie Bark](https://richmondbizsense.com/wp-content/uploads/2024/12/sugar-magnolia-brownie-bark.jpg)
*Local bakery Sugar Magnolia launched Brownie Bark, a gluten-free chocolate snack, in 2024.*

### Noteworthy New Businesses and Products
- **Sijang**, a condiment startup, made waves with its **Garlic Chili Crunch** available in local grocery stores. Originally a catering company, it pivoted into the condiment market last year.
- **Scared Cowboy**, a hot sauce brand, debuted its products online featuring unique sauces made with habanero peppers.
- **Sugar Magnolia Breads and Baked Goods** launched its **Brownie Bark** product, aiming for online and retail sales.
- **Terravive** introduced eco-friendly compostable products, expanding its offerings to include shopping bags and parchment paper.
- **Babylon Micro-Farms** rolled out the **STEM Garden**, a hydroponic vegetable-growing device for educational purposes.

### Expansions and New Concepts
Several startups ventured beyond local markets:
- **Naborforce** expanded its senior companionship service to **D.C.** and **Savannah**.
- **Sherah** extended its personal assistant services for moms to **Alexandria**.

### Capital Raises Fueling Growth
Numerous startups secured funding to enhance operations:
- **Qnovia** raised **$16 million** to bring its nicotine inhaler to the UK market.
- **Fringe** secured **$6 million** to expand its benefits marketplace.
- **Buddy** raised **$7.2 million**, while **Cookie Finance** closed a **$4.1 million** round to support online content creators.

The local startup scene in 2024 was vibrant, with **food businesses flourishing** and several companies successfully raising substantial capital for their growth initiatives.

Food-related businesses fueled much of the local startup scene this year, while several young companies raked in sizable capital raises for their next phases of growth.

2024 Startup Highlights: Food Industry Thrives While Big Investments Flow

### The Better Butchers and Genuine Taste Join Forces

**The Better Butchers**, a Vancouver-based meat analogue maker, has recently signed a **letter of intent** with **Genuine Taste**, a Toronto startup founded by students, to develop **hybrid meat**. This collaboration comes ahead of The Better Butchers' acquisition by the Canadian cellular agriculture group **Cult Food Science**.

### What is Hybrid Meat?

The partnership aims to create hybrid meat products that blend **cell-cultured ingredients** with **plant-based** or **fermentation-derived proteins**. Genuine Taste specializes in producing cultivated fat from animal cells, which will be used in product development and sampling by The Better Butchers.

![Lab Grown Meat Fat](https://www.greenqueen.com.hk/wp-content/uploads/2024/12/the-better-butchers-genuine-taste-lab-grown-fat-hybrid-meat-2.jpg)
*Courtesy: Genuine Taste*

### Genuine Taste's Innovative Approach

Founded in 2022 by **Pooya Mamaghani** and **Emily Farrar**, Genuine Taste utilizes stem cells from cows to cultivate fat cells in bioreactors. This innovative method allows for mass production of fat that closely resembles conventional animal fat, improving the taste and texture of meat alternatives.

Currently, Genuine Taste is at the **benchtop scale** and has begun testing its cultivated fat with a **global food corporation** for potential use in burgers. They have successfully raised **$175,000** from various investors and won **C$100,000** in a national competition for their alternative meat innovation.

### The Better Butchers' Vision

The Better Butchers is excited about the potential of cultivated fat to enhance their product offerings. By collaborating with cutting-edge companies, they aim to develop high-end butcher-shop staples like **burgers**, **bacon**, and **sausages**, while significantly reducing the environmental impact associated with traditional meat production.

Their current product lineup includes **minced meat** in various flavors, and they are actively involved in research projects with **McMaster University** to further develop cultivated meat technologies.

![The Better Butchers](https://www.greenqueen.com.hk/wp-content/uploads/2024/12/the-better-butchers-genuine-taste-lab-grown-fat-hybrid-meat-3-1024x576.jpeg)
*Courtesy: The Better Butchers*

### The Future of Hybrid Meat

With the challenges of scalability and cost in cultivated meat production, many believe that hybrid meats may be the key to commercial viability. As the industry evolves, partnerships like that of The Better Butchers and Genuine Taste will play a crucial role in shaping the future of sustainable meat alternatives.

The Better Butchers has signed a letter of intent with Genuine Taste, a student-founded cultivated beef fat startup, to develop hybrid meat.

Revolutionizing Meat: How Student-Led Genuine Taste is Partnering with The Better Butchers for Hybrid Innovations

### Understanding Startup Salaries

Once a startup successfully raises its **seed round**, the critical question arises: **How much should founders pay themselves and their initial team?** Recent analysis by [Kruze Consulting](https://kruzeconsulting.com), a CPA firm focusing on venture-backed startups, sheds light on salary ranges for over **450 seed-stage startups**.

### Key Salary Insights

According to Kruze, the following are the average salaries for founder executives:
- **CEO:** $132,000
- **CTO:** $134,000
- **COO/Operations:** $135,000
- **Product/CPO:** $149,000

Interestingly, **technical engineering and product roles** generally command higher salaries than the CEO. Notably, the COO position can sometimes indicate a third co-founder role, which may raise eyebrows among seed VCs regarding budget management.

### Competitive Salaries for Engineers

In the competitive landscape of the Bay Area, senior engineers can earn between **$180,000 to $235,000**, while entry-level engineers average **$75,000 to $105,000**. Founders typically increase their salaries as funding rounds progress, averaging **$183,000 after Series A** and **$218,000 by Series B**.

### Starting Salaries for Initial Hires

For initial hires, the starting salaries vary significantly:
- **Engineering (Midlevel):** $100,000 to $145,000 (Bay Area); $90,000 to $130,000 (Other tech hubs)
- **Sales (Midlevel):** $80,000 to $110,000 (Bay Area); $70,000 to $100,000 (Other)
- **Product Titles:** $130,000 to $185,000 (Bay Area); $110,000 to $175,000 (Other)
- **Marketing (Midlevel):** $100,000 to $175,000 (Bay Area); $80,000 to $145,000 (Other)

### Equity Compensation

In addition to salaries, employees often receive equity, which is a major draw for joining startups. According to data from **Carta**, the expected equity for the first five hires is:
- **First hire:** 0.5% to 4% equity (median 1.49%)
- **Second:** 0.3% to 2% equity (median 0.85%)
- **Third:** 0.21% to 1.2% equity (median 0.50%)
- **Fourth:** 0.18% to 1% equity (median 0.44%)
- **Fifth:** 0.13% to 0.8% equity (median 0.34%)

This data provides valuable insights into how startups navigate **salary structures** and employee compensation as they scale. 

*This story originally published December 2, 2024.*

Once a startup has raised its seed round, the perennial question becomes how much should the founders pay themselves and their first few employees? Kruze

Unleashing Innovation: How African Tech Startups are Harnessing AI

Summary:

The Role of Tech Giants

Founders' Perspectives

Key Discussions

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