Investments by Sony Ventures in African Entertainment Startups are Earmarked for $10 Million
Sony Group has launched Sony Innovation Fund: Africa (SIF: AF), committing $10 million through Sony Ventures Corporation (SVC) to support early-stage startups in gaming, music, film, and content distribution across the continent.
This initiative is part of SVC's broader efforts to bolster technology businesses globally, including emerging technology companies.
Sony Ventures, known for over 100 investments in various sectors, prioritizes African entertainment startups with this fund, acknowledging fintech as the most funded sector in the region.
Despite other burgeoning sectors, Sony Ventures aims to kickstart its African venture with a focus on the often overlooked entertainment industry.
Sony's newly established fund targeting African ventures in the entertainment tech sector is poised to inject much-needed support into startups across the continent.
These startups have historically grappled with inconsistent venture capital funding, receiving only 0.9% of Africa's total venture capital investments in 2022, amounting to $42 million, despite the vast potential within areas like gaming, music, movies, and content distribution—key focus areas for Sony.
For instance, the gaming market in Sub-Saharan Africa is anticipated to surpass $1 billion by 2024.
Additionally, the video-on-demand subscriptions are projected to reach 13.7 million in 2027, with revenues tripling from $623 million in 2021 to $2 billion in 2027.
Streaming platforms like Netflix and Amazon Prime face competition from others customizing for African audiences, such as Showmax, Canal+, Disney+, and ROK, in the competitive video streaming market.
The music industry, notably propelled by the widespread streaming of indigenous genres like Afrobeats, has expanded to attract global record labels signing local artists, further underscoring the potential for growth in Africa's entertainment tech sector.
Tage Kene-Okafor / TechCrunch