The tech markets throughout the African continent are young, but developing fast. According to Quartz Africa, a total of $1.3 billion was invested in African startups in 2019. While access to capital is on the rise, a major hurdle for many startups in the region is still a lack of access to talent.
Pariti has identified this problem and created a solution that helps pair talented freelancers with emerging companies in need of talent, unlocking a layer of the market that was previously underserved. By helping companies scale their teams and operations more quickly, Pariti is also helping to greatly expand the number of attractive investment opportunities for venture investors interested in the African markets. Here’s a look at how they are achieving this and why we’re excited to have them participate in our flagship accelerator program.
The Nuts & Bolts
Problem: Currently, it is difficult for startups in African markets to access top talent, financing, and guidance on fundraising strategies. Not to mention, the infrastructure and connectivity challenges that entrepreneurs face in many countries. Despite these hurdles, thousands of startups will continue to emerge within African markets, and these companies have just as much potential for outsized economic success.
Solution: Pariti is building a three-sided marketplace that combines startups, talent, and capital. The platform acts as a baseline for the tech ecosystem throughout Africa to better communicate, accelerate, and capitalize.
Currently focused on aggregating startups and talent, Pariti has strong connections with investors throughout the African continent. With favorable labor markets, the company has also been able to onboard a strong base of global talent to its platform.
Getting to Know Pariti
We met the Pariti team during our open office hours. Yacob Berhane, Co-Founder and CEO, and Wossen Ayele, Co-Founder and COO, who are from the U.S., have known each other for a long time and have both lived in Kenya. Yacob has experience in investment banking and the accelerator space, while Wossen has a JD and experience in strategy consulting.
The Pariti leadership team is rounded out by Selman Kaldirogulu, Head of Product, who has spent time at Facebook and Instagram in product roles, and CTO Gareth Lloyd, who has previous experience as a startup CTO.
Pariti is working towards several goals that match our ESG criteria. They are focused on helping create quality jobs and economic growth (UN Sustainable Development Goal 8), reducing inequalities (UN Sustainable Development Goal 10), and ultimately, reducing poverty in all its forms (UN Sustainable Development Goal 1). According to the team, they are on a mission “to make the world a more equitable place by evolving and growing underserved markets.”
Why Now?
African companies are under-capitalized, but we believe there will be a surge in investments across the region, and Pariti is the right company to help accelerate this growth. Additionally, COVID-19 is expediting the growth of the global freelancer workforce. According to a recent Upwork report, the HR and freelance SaaS space is projected to hit $44 billion by 2023 and may even exceed that number as we continue to witness a redistribution of labor.
The expected population growth in African countries is also an important signal for future economic growth. Pew Research Center analysis states that five of the top ten most populous countries in the world will be in Africa by 2100, including Egypt, Tanzania, Ethiopia and the Democratic Republic of Congo.
With population growth comes new economic challenges, and for these reasons, platforms like Pariti which solve important issues in the HR and technology sectors can be crucial.
Future of Pariti
We are impressed with what the Pariti team has achieved so far. They have built a strong network of investors, established entrepreneurs, accelerators, and corporations across three of Africa’s largest tech markets, including Nigeria, Ghana, and Kenya. Things are lining up nicely for a tech boom throughout the region, and we’re excited to support Pariti as they help build and streamline thriving entrepreneurial ecosystems.
You can learn more about Pariti at https://www.pariti.io.
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