Vercel, the Silicon Valley company behind the widely used Next.js web development framework, has acquired two startups in recent weeks, both founded in Africa and backed by the same venture capital firm.
The acquisitions of Better Auth and Stakpak underscore a growing trend in African technology: founders building infrastructure products for global markets while keeping significant parts of their operations on the continent.
Better Auth was founded by Bereket Engida, a self-taught developer based in Addis Ababa, Ethiopia. The company developed authentication software that helps developers add user logins and security features to applications without building those systems from scratch.
Stakpak, founded by George Fahmy in Cairo, developed tools designed to simplify software infrastructure and automate parts of the work involved in managing servers and development environments.
Fahmy maintained the company’s engineering operation in Cairo while running sales and business relationships from San Francisco, a model that allowed Stakpak to serve an international market while retaining its technical base in Egypt.
Both startups were backed by P1 Ventures, an investment firm focused on African technology companies. The firm’s investment thesis is that African entrepreneurial talent is more widely distributed across the continent than venture capital funding.
The acquisitions are notable not only because of their timing, but also because neither company was built around a regional technology niche.
Better Auth was designed for developers globally, rather than specifically for African businesses. Stakpak likewise targeted companies managing software infrastructure around the world.
That distinction reflects a broader shift in African technology entrepreneurship. Founders increasingly are building products for international markets from bases in African cities, rather than treating the continent solely as the market for their technology.
The deals also challenge a long-standing assumption that African technology companies are primarily valuable when they solve problems specific to African markets.
The more fundamental question, increasingly, is whether founders have access to capital, networks and early opportunities that allow their products to compete globally.
In the cases of Better Auth and Stakpak, the answer was yes.
The same investor backed both companies. The same Silicon Valley buyer acquired both. And both were built, at least in significant part, from Africa.
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