Funds are increasingly growing for African startups to tap from, even as the Coronavirus pandemic threatens to keep the whole world on hold. Major logistics industry player Imperial has partnered South African venture capital firm Newtown Partners to launch a corporate venture capital (CVC) fund focused on investing in disruptive startups in the logistics industry, with an initial investment of US$20 million.
“This programme will contribute to the long-term success of the organisation by identifying and leveraging startups deploying emerging technologies and business models in key geographical and logistics service areas,” said Lingham, co-founder and general partner of Newtown Partners.
Here Is All You Need To Know
- The new fund launched by Imperial and Newtown Partners, which was founded by South African entrepreneurs Vinny Lingham and Llew Claasen, will identify, invest in, and nurture disruptive, innovative technology startups that present high-growth potential in the global supply chain and logistics technology stack.
“Imperial operates in an environment that is constantly exposed to disruptors and one where innovation is critical. Partnering with Newtown Partners on this innovation fund helps position us ahead of future competitors, enabling a strategic response to emerging technologies and business models,” said Mohammed Akoojee, chief executive officer (CEO) of Imperial.
- As the fund manager, Newtown Partners will adopt a hands-on approach that will see it working closely with portfolio startup companies that the fund invests in. The innovation fund is operationally separate from Imperial, ensuring portfolio startups are not hamstrung by corporate red tape, while still being able to unlock the synergistic benefits of having Imperial as an investor and market access provider.
- The fund has the objective of generating attractive financial returns together with a strategic underpinning relevant to the core business of Imperial.
“By adopting a pragmatic approach to disruptive innovation, we are well-positioned to identify how Imperial’s business will change over the next few years, and enable them to not just weather the inevitable disruption to their industry, but to leverage this change for competitive advantage,” said Claasen, co-founder and managing partner of Newtown Partners.
“We are excited to have been chosen as their partner, and see significant potential for this fund, its startups, and Imperial as we leverage our global startup experience and network to augment the considerable industry knowledge inside Imperial.”
The Imperial Venture Fund is committed to investing in entrepreneurs that will disrupt the status quo in the next 5 to 10 years:
- Supply chain and logistics
- High-growth potential in the global supply chain and logistics technology stack
- Emerging technologies and business models
- Series Seed and Series A
How Startups May Pitch To The New Fund
African startups looking to raise funds from VC may do so through the fund manager, Newtown Partners. Founded in 2014, Newtown Partners is an early-stage venture capital firm that actively invests in emerging, disruptive technology startup businesses. The firm operates out of offices in Cape Town, South Africa and Sunnyvale, California (Silicon Valley). The VC’s portfolio of investments shows preference for blockchain startups, with String Labs, Flutterwave, Block.one, Civic, BitGo counting among its numerous investments. However, since its new mandate is to invest in logistics startups, startups in the African logistics sector may dust up their pitch decks and head in their direction.
If you think your startup could be the next Newtown Partner’s success story, download the fund’s pitch deck template and succinctly explain why Newtown Partners should consider investing in your startup.
SEND PITCH DECK TO NEWTOWN PARTNERS APPLY FOR INVESTMENT HERE! Ml
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com