Partech Africa Is Raising Its Second African Startup Fund

Partech Africa II, a generalist fund founded in January 2018, is seeking to raise its second venture capital fund. It will target high-growth African start-ups as well as small and medium-sized firms (SMEs) in the digital and technology sectors.

Partech Africa II aspires to double the commitments received by the first venture capital fund, Partech Africa I, which closed in January 2019 after raising 125 million euros ($133 million) from forty investors. Several of them have stated their intent to participate alongside the new vehicle.

Partech Africa managing partners Tidjane Dème and Cyril Collon
Partech Africa managing partners Tidjane Dème and Cyril Collon

As a result, the European Investment Bank (EIB) said on Wednesday, June 8, that it was considering investing in the fund for an unknown sum. The International Finance Corporation (IFC) also stated in a project note that it expected to contribute up to 25 million euros (26.5 million dollars) in this second venture capital fund, not to exceed 20% of the overall commitment.

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This is the same sum that the Dutch development financing institution, FMO, intends to commit.

Partech Africa II will follow the investment strategy of its predecessor, leveraging on the knowledge and experience of the team led by Partech Africa managing partners Tidjane Dème and Cyril Collon.

This vehicle would attempt to make seed investments in African technology start-ups concentrating in supply chain services, mobile and online consumer services, fintech, and mobility ranging from €1 million to €15 million. It will also make Series D investments and follow-on investments in the continent’s leading tech firms.

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According to Partech Africa’s 2021 annual report on venture capital funding for African start-ups, published in February, the African tech ecosystem attracted twice as many investors in 2021 (+101 percent compared to 2020). 681 equity deals raised $5.2 billion in total, more than double the amount invested in 2020.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh