Nigerian fintech startups Cleva and Miden have been selected to participate in the W24 batch of Y Combinator, the prestigious Silicon Valley accelerator known for its role in the early development of companies such as Airbnb, Coinbase, and Dropbox. The W24 batch began in January, featuring 137 startups, including two notable entries from Africa, specifically Nigeria.
Cleva, established in 2023, is on a mission to democratize USD banking access in emerging markets, enabling users worldwide to make payments to their digital accounts from clients, employers, and investors. In January, Cleva announced a $1.5 million pre-seed funding round, with contributions from Y Combinator, 1984 Ventures, The Raba Partnership, Byld Ventures, FirstCheck Africa, and several angel investors.
Miden, launched in 2022, offers businesses the capability to issue virtual cards to their customers via its API, thus facilitating a wide range of financial services seamlessly.
Y Combinator’s interest in African startups has seen a noticeable reduction since the W22 batch, which included 24 startups from the continent. The numbers have dwindled since then, with only seven African startups in S22, three in W23, and three in S23, marking a significant decline in participation.
Y Combinator, known for nurturing high-profile African startups like Flutterwave, Paystack, and Kobo360, along with Cowrywise, MarketForce, Kudi, WaystoCap, WorkPay, Healthlane, Trella, 54gene, CredPal, NALA, and Breadfast, holds a unique place in Africa’s startup landscape. Despite its ambiguous role, entrepreneurs across the continent praise the accelerator for significantly benefiting their businesses.
In 2022, Y Combinator increased its standard investment to $500,000, the same amount now accessible to Cleva and Miden. Previously, the accelerator invested $125,000 for a 7% equity stake. With the updated terms, it adds an additional $375,000 through an uncapped SAFE agreement, incorporating “Most Favoured Nation” (MFN) terms.
