500 Global is perhaps best known for its renowned accelerator programme, yet it’s quietly scaling up its investments on the African continent, with those operations led by Mareme Dieng.
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Since it was founded, 500 Global has evolved from a start-up accelerator to a multi-stage venture capital firm. It started making investments in Latin America and East Asia back in 2011, and then the Middle East and Africa in 2012 and Southeast Asia in 2014, and has now grown into a VC with a vast portfolio spanning over 80 countries – almost US$3bn in assets under management.
Here’s what Dieng has learned along the way:
Catalyst: Mareme Dieng, we are looking forward to finding out a little bit more about your journey, from working at the African Leadership Academy to leading the African operations at 500 Global. How have your prior experiences shaped your approach to venture capital?
Dieng: My experience in venture capital, particularly with Draper U – a Silicon Valley-based venture firm headed by Tim Draper – has greatly informed my approach. Tim Draper has always had a conviction-driven approach to investing and entrepreneurship development. At Draper U, we emphasised the importance of the founders and their ability to build. This philosophy aligns closely with what we do at 500 Global. I joined 500 three years ago, to build out our strategy for Africa, leveraging our strength in early-stage investing and our robust networks to find and support exceptional companies on the continent.
Catalyst: Understanding the founders is crucial in venture capital. Having worked in Africa, and been born and raised in Senegal, what do you think are the core strengths of African founders?
Dieng: African founders are incredibly resilient and creative, often out of necessity. Unlike in other markets, they don’t have the luxury of a supportive regulatory and government environment. They face unimaginable limitations, which forces them to be exceptionally resourceful. For example, Nigerian founders are known for their capacity to hustle and their ambitious goals, supported by a strong domestic market. Egyptian founders benefit from a high-quality education system, which helps them produce technically proficient products. In Senegal, founders tend to be more reserved and methodical, often aiming for safe, sustainable growth within reasonable timelines. Despite these nuances, all African founders share a remarkable resilience and ability to overcome challenges.
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Catalyst: Cultural nuances across the African continent clearly play a role in business. As a VC, how important is it to build relationships with these culturally diverse founders?
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Dieng: Building relationships with founders is absolutely crucial. The VC model relies on finding outlier businesses and outlier founders who can achieve significant returns. Understanding and contextualising the behaviours of founders within their cultural environments allows us to better support them. This cultural awareness is vital, not only for venture capital success, but also for business success. Founders often need to build pan-African businesses, which requires navigating cultural differences across the continent. ​​​
As VCs, we must be informed about these cultural realities to provide the right guidance and support to our founders.​​​​
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Catalyst: Along with the African Continental Free Trade Agreement showing good political momentum, intra-African trade is an opportunity yet to be fully realised. How does this impact your approach to investing in pan-African businesses?
Dieng: The African Continental Free Trade Agreement is a significant step forward, but non-tariff barriers still pose challenges. Building pan-African businesses requires founders to understand and operate in culturally diverse markets. This is where our experience and accelerator programmes come in. We tailor our support to help founders navigate these complexities and build successful businesses across multiple regions. It’s crucial to have both the infrastructure and demand in place for sectors like e-commerce to thrive.
Catalyst: Can you share some headline-level insights into your investments in Africa and your sector focus?
Dieng: To date, we have made about 136 investments across the continent, with over 90 active portfolio companies. Our sector focus includes fintech, which is highly relevant due to the existing infrastructure and demand for financial services. We’re also excited about agritech, given Africa’s agricultural economy, and mobility solutions, which address the growing need for efficient transportation in rapidly urbanising cities. Climate tech is another area of interest, as Africa is disproportionately affected by climate change. While we have invested in e-commerce, the sector faces challenges due to the still-developing middle class, and infrastructure limitations.
Catalyst: On the point of infrastructure, last-mile delivery remains a challenge for e-commerce in Africa. Do you see this improving soon?
Dieng: Infrastructure is indeed a significant barrier for e-commerce. Unlike fintech, which built upon existing bank and telco infrastructure, e-commerce requires robust physical infrastructure for last-mile delivery. This, coupled with growing demand from a stronger middle class, is necessary for the sector to thrive. As of today, the infrastructure isn’t fully there, but improvements are being made gradually. The demand and infrastructure need to develop simultaneously for e-commerce to become sustainable in Africa.