Following Paystack’s successful exit, more investors are announcing their entry into the African startup market. The latest to join the list is venture firm Sherpa Ventures which has announced the launch of its US$1 million debut fund for pre-seed tech startups in Africa.
“More than a venture fund — we are a supportive and collaborative global community […] of capital, expertise, and experience who has built and operated some of the strongest startups on the continent, Asia, and across the world,” said Sherpa Ventures co-founder Aaron Fu.
Here Is All You Need To Know
- Based between Singapore, Kenya, and the US, Sherpa Ventures works with a community of investors to help founders strengthen and scale their startups. It does this by injecting capital, sharing local experiences, helping form partnerships, and aiding in market entry, among others.
- Its new US$1 million investment vehicle called “Basecamp Fund” aims to invest US$25,000 to US$50,000 in startups that usually raise less than US$500,000.
- Through the fund, Sherpa Ventures also looks to work with startups over six to nine months before deciding to follow on with more funding.
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A Look At The New VC In Africa
Prior to Sherpa Ventures, Fu served as the head of growth of BFA Global’s fintech-centered Catalyst Fund. He leads Sherpa Ventures alongside ex-Uber Africa launcher Alastair Curtis and Nikhil Patel, the former chief operating officer of African on-demand streaming platform Iroko.
The VC firm’s advisory board consists of veterans with experience in business, late-stage investing, and corporate partnerships, including execs from the Singapore Fintech Association, Acuity Ventures, Safaricom, and Twiga.
Sherpa Ventures has made two investments so far, joining the funding rounds of fintech startups OnePipe and Boost.
In addition to expertise and capital, Sherpa Ventures said it aims to accelerate partnerships between startups in Africa and the Asia Pacific. Some examples of such tie-ups include Singapore-based Fomo Pay’s collaboration with Kenya’s Wapi Pay and Red Dot Payment’s partnership with Finserv Africa.
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