Venture Capital & Funding Sources - Afrikan Heroes

Norrsken22 Debut Fund Surpasses Expectations, Secures $205M for African Tech Startups

November 3, 2023

In a significant development for growth-stage investment in Africa, Norrsken22, a Pan-African venture capital firm, has successfully closed its debut fund, surpassing its initial target and raising a total of $205 million. This achievement underscores the strong interest from institutional investors in supporting African startups at a critical juncture in their growth journey.

Established by five individuals with extensive experience in venture capital and private equity, Norrsken22 boasts a distinguished team of founders and partners. The firm’s leadership includes founding partners Niklas Adalberth and Hans Otterling, along with managing partner Natalie Kolbe and general partners Ngetha Waithaka and Lexi Novitske. Operating for nearly two years, Norrsken22 has established operational teams in Nigeria, South Africa, Kenya, and Ghana.

The Norrsken22 African Tech Growth Fund was launched in January the previous year and achieved its first close at $110 million. Notably, approximately 59% of the funding came from a consortium of 30 unicorn founders worldwide, including prominent figures like Olugbenga Agboola, CEO of Flutterwave, Niklas Zennström, co-founder of Skype, Jacob de Geer, co-founder of iZettle, and Niklas Östberg, co-founder of Delivery Hero.

The timing of Norrsken22’s fundraising coincided with a surge in capital inflow into the tech sector. Initially, the firm intended to reach its final close by the end of 2022, engaging in discussions with development finance institutions (DFIs) and family offices, which are typically necessary for raising substantial funds in Africa. However, the global tech investment landscape experienced a pullback, affecting fundraising efforts across the board, including from institutional investors. In 2022, venture capital activity in Africa amounted to $5 billion to $6 billion. In 2023, the figure has decreased to a range between $2.5 billion and $3.4 billion, reflecting the overall decline in VC activity.

Despite the prevailing challenges, Norrsken22 successfully achieved its final close, albeit with a one-year delay. This accomplishment is significant given the obstacles faced by many VC firms, both local and global, in raising or closing their funds. The oversubscription of the growth fund is a remarkable feat, attributed by managing partner Kolbe to a renewed fundraising momentum observed in early 2023. The extensive experience of Norrsken22’s founding team in African investments, combined with the backing of other limited partners, particularly founders of unicorn startups, played a crucial role in garnering interest and support for the fund.

Following the initial fund close, which received support from SEB Pension Foundation and a few family offices, Norrsken22 attracted new limited partners such as British International Investment (BII), International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), Standard Bank, and Norfund.

Investment Focus on Series A and B Rounds

In the African investment landscape, international funds typically lead most large deals, while local investors primarily focus on pre-seed to Series A rounds with smaller to medium-sized funds. Large Africa-focused funds like Norrsken22 aim to bridge the gap between growth and late-stage investments. Around 50% of Norrsken22’s capital will be allocated to building its portfolio with Series A and B companies, with the remainder reserved for follow-on investments, primarily in the B and C rounds, according to Kolbe.

The firm’s investment focus centers on entrepreneurs developing fintech, edtech, medtech (health tech), and market-enabling solutions that promise strong returns and positive impacts across Africa. To date, Norrsken22 has made five investments, including TymeBank, Sabi, Smile Identity, Autochek, and Shara.

Norrsken22’s objective is to invest in approximately 20 startups, with an average investment ticket size of around $10 million. However, in select portfolio companies, it may go as high as $16 million for follow-on rounds, as discussed by the partners in a previous interview.

Strategic Exits

Like several other growth-stage firms, Norrsken22 is keen on preparing its portfolio companies for successful exits. The firm conducts rigorous evaluations of potential exit scenarios, including identifying potential buyers and assessing valuations at the end of the investment period. According to Kolbe, this diligence is crucial, and the firm has declined investments where a compelling exit case was not evident.

Norrsken22 is exploring exit opportunities through international strategic buyers, consolidation with local industry leaders, and potential acquisitions by large multinational corporations in Africa. These corporations often seek innovation by acquiring tech businesses, which can be integrated into their operations or operate as separate entities under a different brand. Norrsken22’s debut fund is supported by an advisory council comprising business leaders in banking, telecommunications, agriculture, and real estate.

Japanese VC Giant SBI Holdings Commits $40 Million to Fuel African Startups

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

Egypt’s ‘Nclude’ Fund Raises $105 Million in Latest Fintech Boost

November 2, 2023

In a recent announcement, the Central Bank of Egypt revealed that the “Nclude” Fund for Financial Technology has exceeded its initial target capital of $85 million, reaching an impressive $105 million in its latest round of funding. This achievement comes as a result of contributions from various banks operating in Egypt, including the National Bank of Egypt, Banque Misr, and Banque du Caire, along with several specialized companies in the financial technology sector.

The Central Bank had high hopes for the “Nclude” Fund, expecting it to attract prominent regional and international investors, solidifying its position as the largest financing fund in the technology sector with a targeted capital of $150 million. The Fund’s investment strategy has focused on supporting innovative startups, directing its resources to four new companies, thereby increasing its portfolio to include eight companies operating in the realm of financial technology.

This milestone reflects the Central Bank’s commitment to promoting and advancing the financial technology ecosystem within the Egyptian market. It aligns with the central bank’s overarching strategy to foster innovation and creativity in financial technology and contribute to Egypt’s emergence as a prominent hub for fintech in the Arab world and Africa.

Back in March 2022, in response to the Central Bank’s approval, prominent national banks in Egypt, namely Banque Misr, the National Bank of Egypt, and Banque du Caire, along with Global Ventures, a leading venture capital firm focusing on the Middle East and Africa, jointly launched “Nclude by Global Ventures.” This fund’s primary objective is to stimulate fintech innovation and enhance financial inclusion.

The initial investment commitment, initially set at $85 million, was spearheaded by Banque Misr as the Anchor Investor, with the National Bank of Egypt and Banque du Caire acting as Strategic Investors. Additionally, the Fund garnered investments from the finance investment group and the Egyptian Banks Company. Furthermore, it is anticipated that the Fund will continue to attract substantial investments from regional and global investors.

In its early stages, the Fund has already made strategic investments in companies such as Khazna, a financial super app; Lucky, Egypt’s leading consumer fintech app; Mozare3, an agri-fintech platform; and Paymob, a prominent digital payment service provider. Additionally, the Fund will receive support from Shipyard Technology Ventures, a global venture builder, bringing their development capabilities to the Egyptian market to incubate fintech startups tailored to local and regional opportunities.

This development aligns with the vision of Mr. Tarek Amer, Governor of the Central Bank of Egypt, who expressed his commitment to supporting innovative youth in fintech, enhancing financial services accessibility, and making Egypt a central player in the fintech landscape. The endeavor is seen as a pivotal step towards digital transformation, financial inclusion, and the realization of Egypt’s Vision 2030.

Chairpersons of major Egyptian banks, including Banque Misr, the National Bank of Egypt, and Banque du Caire, all emphasized the significance of the “Nclude” Fund in driving Egypt’s fintech future and fostering a thriving ecosystem for fintech talents and young entrepreneurs.

Soccer Stars Join Forces with Venture Capital to Support Cameroon’s StarNews Mobile in $3M Round

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

AAIC Investment Expands AHF2 with $87 Million Injection for African Startups

October 26, 2023

AAIC Investment Pte. Ltd., headquartered in Singapore and led by CEO Susumu Tsubaki, is thrilled to announce that the Africa Innovation & Healthcare Fund (“AHF2”), managed by AAIC Investment, has gained new support from prominent financial institutions and publicly-listed companies. The combined size of AHF1 and AHF2 now stands at an impressive $87 million, with a strong focus on nurturing the growth of innovative African companies that promote sustainable economic development and address critical social challenges.

In a strategic move, the Development Bank of Japan (DBJ), QR Investment Co., Ltd (part of the Hokkoku Financial Holdings Group), TOPPAN Holdings Inc., and other prominent entities have committed to invest in the Africa Innovation & Healthcare Fund. These new investors will leverage their networks and resources to facilitate collaborations between Japanese enterprises and AHF2’s portfolio companies, creating exciting co-investment opportunities for businesses in Africa.

AAIC Investment first blazed a trail in 2017 with the launch of Japan’s inaugural African fund, the Africa Healthcare Fund (AHF1), which primarily supported 30 healthcare-focused companies, closely aligned with the Sustainable Development Goals (SDGs). AHF2, the fund in focus, has concentrated its investments on 15 companies specializing in digital healthcare and emerging technologies such as remote diagnosis, artificial intelligence (AI) diagnostics, pharmaceutical distribution, FinTech, and InsurTech. These investments have been pivotal in driving the growth of African startups, particularly in the wake of the COVID-19 pandemic.

With the successful second closing of AHF2, the collective assets managed by AAIC Investment in AHF1 and AHF2 now amount to approximately $87 million (equivalent to approximately 13 billion yen). This remarkable achievement brings the total number of supported companies to an impressive 45, showcasing a steadfast commitment to fostering innovation and economic growth in Africa.

Distinguished companies such as Asahi Intecc Co., Ltd., Eisai Co., Ltd., Ohara Pharmaceutical Co., Ltd., and Marubeni Corporation have already joined the ranks of AHF2 investors, further highlighting the fund’s significance in the realm of African innovation.

Here are some notable comments from the investors who have joined AHF2:

Yoshio Yamaguchi General Manager of Growth & Cross Border Investment Department, Development Bank of Japan Inc. “Through AHF2, we are investing in startups with cutting-edge technology, particularly in the healthcare sector. In Africa, a continent grappling with diverse social challenges, we see the potential for AHF2 to drive transformative economic and social development, akin to a leapfrog. We anticipate AAIC Investment’s support for Japanese companies’ global expansion, which, in conjunction with local investment activities, will contribute to the sustainable growth of African economies and societies.”

Fumio Hamano President, QR Investment Co., Ltd. “African countries, poised for future economic growth, grapple with numerous social challenges that must be addressed for their well-being. Our investment in AHF2 aligns with our shared goal of achieving ‘sustainable economic growth’ and ‘solutions to social issues’ in Africa. We aspire to play a pivotal role in advancing the development of both African nations and Japan through collaboration with Japanese enterprises.”

Takao Ikeda Managing Executive Officer, Global Business Division, TOPPAN Holdings Inc. “We have chosen to invest in AHF2 due to our strong interest in the burgeoning African market. We believe this fund leads the African healthcare sector by selecting companies from a diverse range of countries and viewpoints. We look forward to the value that our technology and solutions will bring, fostering new businesses and enhancing corporate value through collaborations with AHF2 portfolio companies.”

Overview of AHF2

Fund Name: Africa Innovation & Healthcare Fund
Target Countries: Various nations across Africa, with a keen focus on Kenya, Nigeria, South Africa, and Egypt.
Target Sectors: Medical and healthcare, along with technology-driven companies in social infrastructure fields including finance, insurance, and logistics.
Investment Stages: Series A and B
Ticket Size: Ranging from $200,000 to $5 million

Overview of AAIC Investment

Company Name: AAIC Investment Pte. Ltd.
Headquarters: Singapore
CEO: Susumu TSUBAKI
Year of Incorporation: 2013
Main Business: Established in 2013, AAIC Investment is the fund management arm of AAIC Holdings. It initially supported the Corporate Venture Capital (CVC) efforts of Japanese corporations in 2014, before venturing into Africa with the launch of the Africa Healthcare Fund (AHF1) in 2017. In 2022, AAIC Investment introduced the Africa Innovation and Healthcare Fund (AHF2). As of September 2023, AAIC Investment has invested in 45 companies through AHF1 and AHF2.

Flourish Ventures Secures $350 Million to Fuel Emerging Market Fintechs, Including Africa

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

Deep Tech Startups in Tunisia Have a New $10.5M Seed Fund to Tap

October 18, 2023

Within the framework of a startup support project funded jointly by the World Bank, CDC, and KfW, the Anava fund of funds has announced its commitment to invest 5 million euros (USD 5.27M) in a new underlying fund, Titan Seed Fund I, managed by Medin Fund Management Company.

Titan Seed Fund I aims to reach a size of 10 million euros with the goal of investing in around twenty Tunisian startups. It will be the first fund in North Africa focused on deep tech at the Seed stage. The fund plans to invest an average ticket size ranging from 300,000 to 650,000 euros, with the objective of preparing them for a Series A fundraising round.

Ghazi Ben Othmane, a shareholder of Medin Fund Management Company, stated, “The company’s international professional network (in the Americas, Europe, Africa, and the Gulf) facilitates startups’ access to the global scale and easier international expansion.” He also added, “The company is not afraid of taking risks, which means it invests in innovative, scalable startups and highly ambitious entrepreneurs, especially in deep tech, whether it’s in agriculture, medicine, fintech, and more.”

It’s worth noting that Anava is the first euro-denominated fund of funds in Tunisia and a key component of the national initiative “Startup Tunisia,” which aims to establish Tunisia as a hub for innovation and startups at the crossroads of the Mediterranean, the MENA region, and Africa.

Initially targeting a size of 100 million euros, with an initial closing of 40 million euros subscribed by the Caisse des dépôts et consignations (CDC) through a World Bank loan and 20 million euros subscribed by KfW, the fund of funds aims to provide the underlying funds with the opportunity to invest in Tunisia and abroad. This solution is greatly anticipated to address the funding and internationalization challenges faced by Tunisian startups.

The fund is managed by Smart Capital, a company authorized by the Conseil du marché financier (CMF) and mandated by the Tunisian government to implement its national program, Startup Tunisia.

Deep tech Fund Tunisia Deep tech Fund Tunisia

Digital Banks are Giving Big Banks Runs for Their Money

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

How the Moremi Platform Plans to Deploy $150 Million in African Female Founders

October 17, 2023

Kuramo Capital Management, an investment firm specializing in Sub-Saharan Africa (SSA), is set to allocate $150 million towards advancing enterprises led by African women through its Moremi Platform. This 10-year initiative aims to empower the next generation of female entrepreneurs in Africa and promote gender-inclusive fund management.

The Moremi Platform comprises three key components: an accelerator program, a warehousing/lending facility, and a Fund of Funds. The first phase, the accelerator program, has been unveiled and serves as a mentorship, capacity-building, and technical support hub, focusing on nurturing 40 female entrepreneurs and fund managers each year.

According to Wale Adeosun, CEO and Founder of Kuramo, this initiative addresses the considerable financial and knowledge disparities faced by women in business, a significant hurdle to achieving comprehensive, sustainable economic and social progress in African nations. It also emphasizes the development of women fund managers to foster the growth of women-led businesses.

Adeosun explains, “We believe that, just as we were able to address gaps with African GPs (fund managers) in the past, we can achieve a similarly catalytic impact with our gender lens initiative.”

The accelerator program offers a structured curriculum for capacity enhancement, technical assistance, and mentorship for women in business, especially female fund managers in Africa.

Sarah Ngamau, Managing Director of Moremi Fund, states, “The Accelerator Program is being launched at such a critical time in Africa’s investing story and we are excited by the traction. Despite an increased flow of capital to Africa, women have still been underrepresented at all levels of the investment landscape. Our goal is to address this barrier and improve the ecosystem by supporting female-led African private equity and venture capital funds.”

The World Economic Forum has identified Sub-Saharan Africa as having the world’s highest rate of women involved in entrepreneurial activity, with women making up 58 percent of Africa’s self-employed population. To build on this foundation, Africa needs strategies that prioritize gender-smart investment practices.

Sarah emphasizes, “At Kuramo Capital and Kuramo Foundation for Sustainable Development, we firmly believe that the fastest way to unlock capital for female entrepreneurs and gender-smart businesses at scale is to invest in female-led and gender-diverse fund managers. We are delighted to promote inclusive economic empowerment of female-led funds in Pan-Africa.”

Kuramo, founded in 2011, has already mobilized over $3.5 billion (Ksh 73.8 billion) to support more than 200 companies, generating over 50,000 jobs in Africa. The company is committed to creating lasting capital value and promoting the sustainable growth of businesses across various sectors of the economy. The Moremi Accelerator Program is an essential part of their vision to drive gender-equitable capital growth, crucial for powering Africa’s socio-economic transformation.

Shaka Kariuki, Co-CEO & Chief Investment Officer of Kuramo Capital, sees the accelerator program as a significant contribution to positioning Africa as an attractive investment destination. Before Kuramo’s entry into Africa, there were very few investors channeling capital to African fund managers on the continent.

“However, since Kuramo’s arrival, we have been able to anchor and fund more than 15 funds across Sub-Saharan Africa, which has helped mitigate some of the concerns associated with investing on the continent. With the Moremi Accelerator Program, we will be addressing challenges facing African female entrepreneurs and fund managers stemming from such perceptions.”

Nigerian Insurtech Startup Haba Secures Pre-Seed Funding to Pursue Insurance Ambitions in West Africa

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 con

How Sony Ventures Plans to Deploy Its New $10M Fund in African Startups

October 14, 2023

Sony Ventures plans to deploy its new $10 million fund in African startups with a focus on entertainment businesses. The fund, known as Sony Innovation Fund: Africa (SIF: AF), is set to support early-stage startups operating in the fields of gaming, music, film, and content distribution. This initiative is part of Sony Ventures Corporation’s broader efforts to back technology businesses across different markets and stages.

In 2022, Sony Ventures established the Sony Innovation Fund 3 with $215 million to support emerging technology companies across all stages. Through its various investment arms, including Sony Innovation Fund (SIF), Sony Innovation Growth Fund (a joint venture with Daiwa Capital Holdings), and Sony Innovation Fund: Environment, Sony Ventures has made more than 100 investments in various sectors, including entertainment, robotics, AI, mobility, fintech, healthcare, logistics, and SaaS.

Despite fintech being the most funded sector in Africa, Sony Ventures is focusing on entertainment startups for its initial entry into the African market. According to Gen Tsuchikawa, CEO of Sony Ventures, the company’s mission is to combine creativity and technology to enhance entertainment experiences worldwide. Africa’s vibrant community of creators and entrepreneurs looking to innovate in the entertainment sector has driven Sony to establish SIF: AF.

Sony’s Africa-focused fund aims to provide much-needed support to entertainment tech startups in Africa, which have historically struggled to secure consistent venture capital. According to Partech Africa, these startups received only $42 million in 2022, accounting for just 0.9% of Africa’s total venture capital investments, despite the substantial potential in gaming, music, movies, and content distribution.

For example, the gaming market in Sub-Saharan Africa is expected to exceed $1 billion by 2024. Video-on-demand subscriptions and the music industry are also on the rise, with considerable growth in these areas expected in the coming years.

Sony Ventures plans to offer follow-on investments to its portfolio companies in addition to its seed and early-stage investment strategy. While there’s no fixed timeframe for deploying the $10 million or a specific number of startups to invest in, the fund anticipates ticket sizes ranging from $250,000 to $1 million.

Initially, Sony Innovation Fund: Africa will focus its efforts on South Africa, Kenya, Nigeria, and Ghana, but there’s potential for expansion in the future. The fund’s activities in Africa will be supported by the Sony Ventures team in Europe, with the intention of hiring a full-time member on the continent to manage venture capital sourcing.

Sony Ventures’ commitment to supporting African entertainment startups demonstrates its recognition of the region’s untapped potential and its desire to foster the growth of the entertainment industry in Africa through technology and innovation.

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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

Sanari Capital Strategizes Deployment of Newly Secured $65 Million Fund in Africa

October 10, 2023

South African private equity firm, Sanari Capital, has successfully raised R1.25 billion (about $65 million) for its growth fund. The firm aims to contribute to employment opportunities and economic growth within South Africa and across Africa.

The second closing for the Sanari 3S Growth Fund brings the firm closer to its goal of securing up to $100 million.

Notable financial institutions, including the Public Investment Corporation (PIC) and Alexforbes Investments, have joined as new investors in this round. The PIC manages capital for the Government Employees Pension Fund (GEPF), the largest pension fund in Africa.

Moushmi Patel, Co-Founder, Partner, and Investment Director at Sanari

Sanari Capital’s Founder and CEO, Samantha Pokroy, expressed gratitude for the capital injection from these respected financial institutions, emphasizing their shared commitment to achieving both financial and socio-economic objectives. The funding is expected to address economic imbalances, promote transformation, stimulate economic growth, create jobs, and deliver environmental and financial returns.

The addition of PIC and Alexforbes complements Sanari Capital’s existing investor base, which includes the 27four Black Business Growth Fund, Telkom Retirement Fund, the Motor Industry Retirement Funds through the RisCura Manager Development Programme, and the National Fund for Municipal Workers (NFMW).

Moushmi Patel, Co-Founder, Partner, and Investment Director at Sanari, highlighted the fund’s transformative potential, allowing for investment in larger businesses and the expansion of their investment strategy focused on mid-market businesses. Patel also mentioned their continued support for Edulife Group, an affordable independent school group in South Africa.

Sanari Capital typically invests between R50 million and R250 million in well-established businesses positioned for growth through technology and market expansion. Ofentse Pelle, Partner and Investment Director, emphasized their commitment to digital and human empowerment, focusing on sectors with growth prospects and supporting local employers.

In line with global trends, Sanari’s investment philosophy emphasizes technology, connectivity, IoT, data, and services. Additionally, the firm strategically invests in sectors such as education, healthcare, food security, and eco-friendly solutions. Sihle Gumede, Partner and Investment Director, mentioned their encouragement of businesses to adopt a broader perspective, considering both local and regional opportunities.

The capital invested by the fund ensures 100% black ownership in portfolio companies, aligning with Sanari Capital’s commitment to diversity. Samantha Watermeyer, Partner and Operations Director, emphasized the fund’s alignment with the 2X Challenge, a global initiative promoting women’s participation in international economic development and leadership.

Sanari Capital’s recent funding success marks a step towards enhancing employment opportunities and stimulating economic growth in South Africa and Africa. As the fund enters its next phase, it aims to contribute to a more prosperous and inclusive future.

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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

Cleantech Investor Gaia Impact Raises New $42M Fund for Investment in African Startups

September 29, 2023

Gaia Impact, a prominent impact investment advisory firm that initiated a coalition in March last year alongside Capital Croissance, Schneider Electric, Capelan, and Investisseurs & Partenaires (I&P), has successfully reached its initial closing target of €40 million (42.2 Million USD) for the Gaia Energy Impact Fund II (GEIF II).

GEIF II, a fund adhering rigorously to the impact criteria outlined in Article 9 of the SFDR regulation, is dedicated to financing and nurturing startups and SMEs that operate throughout the entire decentralized renewable energy value chain, capitalizing on Gaia Impact’s profound expertise. In a previous investment endeavor, Gaia Impact Fund SAS (“Fund 1”) invested in approximately twelve companies, predominantly in Sub-Saharan Africa. Notably, Osmosun, a beneficiary of Fund 1, recently made a successful debut on Euronext Growth® by going public.

Aligned with the same investment philosophy, GEIF II is positioned to provide funding at the seed, Series A, and Series B stages, utilizing equity and quasi-equity instruments, with investment amounts ranging from €500,000 to €5 million. The fund’s overarching objective is to support roughly twenty companies, with an estimated 85% of them actively engaged in Sub-Saharan Africa.

GEIF II will allocate investments within sectors encompassing decarbonized energy access, productive energy utilization, electric mobility, new energy solutions, and enabling technologies. These investments are anticipated to yield improved energy accessibility for approximately 4 million people, facilitate the creation and sustenance of 20,000 jobs, and mitigate the emission of 4 million tons of CO2.

Capital Croissance, entrusted exclusively with Gaia Impact’s advisory services, serves as the fund manager for Gaia Energy Impact Fund II, while Schneider Electric and the Capelan family office are the cornerstone investors of the fund. I&P, an established specialist in private equity investments within Africa spanning two decades, plays a pivotal role as a strategic partner owing to its localized presence and extensive experience on the continent.

Beyond providing financial backing, the Gaia Impact team assumes the role of a dedicated and patient collaborator alongside entrepreneurs, offering counsel on strategic decision-making and actively participating in business structuring. Schneider Electric and I&P are set to contribute their expertise in supporting investments within their respective domains.

GEIF II aspires to achieve a final closing of €80 million by the first half of 2024. In the summer season, GEIF II embarked on its inaugural investment of $1 million in Surechill, a Kenyan-based enterprise that has pioneered transformative technology in medical and productive refrigeration.

Gaia Impact Fund — *Hélène Demaegt is the Founder and President of Gaia Impact. Credits: Gaia Impact*

Hélène Demaegt, the Founder and President of Gaia Impact, expressed her gratitude for this initial closing, stating, “We sincerely thank our partners for making the Gaia Impact adventure even more ambitious. Thanks to them, our action for the energy transition in Africa is taking on a new dimension.”

Eric Neuplanche, Founder and President of Capital Croissance, added his perspective, remarking, “We have been impressed by the achievements and high professionalism of the Gaia Impact team since 2017, and even more so by the strong social, societal, and environmental ambition of this impact fund. It replaces polluting energy with decarbonized energy and provides access to energy for 4 million people. The entire Capital Croissance team is proud and highly motivated to be associated with the Gaia Impact team, I&P, and Schneider Electric in a fund project that reconciles economic returns, social impact, and environmental impact.”

Jérémy Hajdenberg, co-CEO of I&P, emphasized their commitment, stating, “I&P is proud to engage with Gaia Impact on this fundamental project, addressing both energy and SME financing issues. Beyond its participation in Investment Committees and governance, I&P will provide its expertise on ESG and impact and its network in Sub-Saharan Africa, built over more than 20 years of impact investment in Sub-Saharan Africa.”

Gilles Vermot Desroches, SVP Corporate Citizenship at Schneider Electric, affirmed their dedication, stating, “Schneider Electric has been active for more than 10 years in supporting access to electricity, especially through its impact investment activity. We believe that this new coalition brings together the best assets to accelerate our impact in Africa. Schneider Electric will make its team’s expertise available for this project.”

How Enza Capital Plans to Invest Its New $58 Million Fund in African Startups

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

Investors Back Secha Capital in New $15.6 Million Fund II for Tech-Enabled Sustainability

September 27, 2023

Secha Capital, the brainchild of visionary founders Nombuso Nkambule, Brendan Mullen, and Rushil Vallabh, marked a significant milestone today with the announcement of the first close of its second fund. A total of ZAR 300 million (USD 15.6 million) in investments have poured in from illustrious blue-chip investors, solidifying Secha Capital’s position as a game-changer in the Southern African venture capital landscape. The esteemed investors behind this financial leap include RMB Ventures, 27four Investment Managers, The SA SME Fund, and Caleo Capital.

This latest funding round, with a target of ZAR 650 million (USD 33.8 million), sets the stage for Secha Capital to implement its distinctive Operator-Investor model. Designed to bridge the gap between early-stage startups and mature companies, Secha Capital identifies traditional businesses in Southern Africa that are undergoing a tech-enabled transformation into the green economy. Rushil Vallabh, one of Secha’s founders, emphasized their mission: “We invest in companies at an inflection point in their growth trajectory. Most capital in Southern Africa is invested in either extremes — early-stage start-ups or mature companies. We’ve identified a gap in the market where we can find a unique proprietary pipeline and bring in our team of Operator-Investors to achieve outsized returns.”

Secha’s Operator-Investor model involves deploying highly skilled human capital resources into portfolio companies to work on high-impact value creation projects, propelling exponential growth for the entrepreneurs at the helm. Brendan Mullen, another driving force behind Secha Capital, added, “We are a young and diverse team. We bring operating expertise to ‘heartbeat-of-the-economy’ growth stage companies via our strategy consulting, finance, and entrepreneurial backgrounds.”

Secha Capital’s first fund showcased that combining equity investments with human capital for growth stage businesses is a replicable model for generating financial returns and social impact, with a particular focus on women-founded businesses in South Africa. Fund II is already underway with four investments in innovative companies: iG3N, Cultura Fresh, Herbivore, and FarmTrace.

Brian Waweru of RMB Ventures expressed his admiration for Secha’s thesis-driven investment strategy, highlighting its potential to stimulate economic growth in South Africa and benefit the broader private equity and venture capital ecosystem. He stated, “Our investment in Secha is consistent with our strategy to explore alternative models to stimulate economic growth in South Africa. We are proud to support Secha’s ongoing success.”

As a subsidiary of FirstRand Limited, the largest financial services group in Africa by market capitalization, RMB Ventures has a formidable track record in providing private equity capital, with investments spanning over 40 transactions since the mid-1990s, and a current portfolio valued at over ZAR 8 billion (USD 417.6 million). The fund is poised to make ten more investments within the next five years.

Ridwaan Kajee of 27four Investment Managers echoed the sentiment of confidence in Secha Capital, emphasizing the uniqueness of their Operator-Investor value-add model. “Secha has demonstrated that the model works and is replicable, and we’re proud to therefore back this team to scale the model and showcase a new approach to investing in Africa,” he said. 27four Investment Managers, a diversified global financial services group, is known for innovative investment strategies and support for independent asset managers.

Secha Capital Fund II anticipates its final close in September 2024, with a mission to continue fostering job creation, transformation, growth, and exits. Claudia Manning of The SA SME Fund shared their motivation for investing in Secha, stating, “We were impressed by Secha’s track record of job creation, transformation, growth, and exits. We invested in them so that they can continue what they do with more companies, more people, and at a greater scale.”

The SA SME Fund, with its newly established Venture Capital Fund of Funds (VCFoF), focuses on later-stage VC funds in South Africa, aiming to achieve superior risk-adjusted returns while championing transformation and impact in the entrepreneurial landscape. Secha Capital’s journey is poised to make a lasting imprint on Southern African business development, thanks to its innovative Operator-Investor model and the strong support of its visionary investors.

How African VC P1 Ventures Plans to Deploy Its Newly Closed $25M Fund

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

Joliba Capital Fund Secures $59M to Fuel Growth in Francophone Africa’s Thriving Companies

September 14, 2023

In a resounding testament to the burgeoning economic landscape of Francophone Africa, Joliba Capital has announced the successful first close of its inaugural fund, Joliba Capital Fund I, amassing an impressive €55 million (USD 59 Million) in capital commitments. This landmark achievement has been underpinned by investments from prominent financial entities, including Proparco, a subsidiary of the Agence Française de Développement Group, the International Finance Corporation (IFC), a distinguished member of the World Bank Group, and FMO, the Dutch Entrepreneurial Development Bank.

Empowering Francophone Africa’s Business Ecosystem

Joliba Capital, an African private equity firm majority-owned by LBO France, a multi-specialist and multi-country investment platform, was co-founded by seasoned African investment professionals Hamada Touré (Managing Partner) and Yann Pambou (CEO & Managing Partner). The team, comprised of five members hailing from diverse African backgrounds, brings with them a wealth of private equity and value creation experience across the targeted region. This multicultural team has received unwavering support from LBO France, which has dedicated both human and financial resources to this strategic endeavor, along with a substantial investment in the Fund. Notably, Joliba Capital draws upon LBO France’s impressive 30-year track record in Small and Midcap company investments, its proficient operating team, and its expertise in Environmental, Social, and Governance (ESG) considerations.

A Catalyst for African Private Equity

The catalytic force behind this initiative, Proparco, has played an instrumental role from the inception of Joliba Capital, aiming to foster the growth of the African private equity industry. The Fund is poised to primarily target investment opportunities across Francophone countries in Western and Central Africa, with the overarching goal of cultivating a diversified portfolio of small and mid-cap regional champions. These enterprises, operating across a spectrum of consumer-driven sectors such as agribusiness, manufacturing, FMCG, education, healthcare, financial services, and logistics, have historically operated within less developed private equity markets than their Anglophone counterparts.

Championing Value Creation and ESG

Joliba Capital will firmly place value creation at the heart of its strategy, aspiring to generate superior returns while systematically deploying ESG strategies to maximize impact. Gender diversity promotion and sustainable growth across portfolio companies are paramount in their mission.

A Joint Commitment to Africa’s Development

Robert Daussun, Chairman of LBO France, and Stéphanie Casciola, CEO of LBO France, expressed their commitment to enhancing Africa’s development through their hands-on investment approach, bolstered by a strong ESG ambition. They highlighted their recent majority stake acquisition in CGF Bourse, a Dakar-based brokerage firm and asset management company, as well as their support for Seedstars Africa Venture.

Founders’ Vision and Gratitude

Hamada Touré and Yann Pambou, the founders of Joliba Capital, voiced their pride in this milestone achievement. They expressed their enthusiasm for supporting African SMEs with innovative financial solutions and bridging the financing gap in Francophone West and Central Africa. They extended their gratitude to partner LBO France and investors Proparco, FMO, and IFC while looking forward to additional commitments from Development Finance Institutions (DFIs) and institutional investors as they progress towards their final close.

DFIs Unite for Greater Impact

Djalal Khimdjee, Deputy CEO at Proparco, and Damien Braud, Head of Private Equity Africa & Middle East, expressed their excitement in supporting Joliba Capital, with IFC and FMO joining the endeavor. They underscored the Fund’s mission to finance sustainable and inclusive businesses in Francophone Africa, aligned with their 2023–2027 Strategy, “Acting together for greater impact.” The emphasis on gender diversity and ESG best practices was acknowledged as a significant step toward promoting impact.

IFC’s Global Director on Empowering SMEs

William Sonneborn, IFC’s Global Director for Disruptive Technologies, Creative Industries, and Funds, highlighted the crucial role of funds like Joliba in assisting SMEs, particularly family-owned ones. He emphasized the creation of new sources of equity financing for SMEs, especially in countries with emerging private equity ecosystems.

FMO’s Commitment to Prosperity

Christian Roelofse, Manager Private Equity at FMO, stressed the alignment of objectives between FMO and Joliba Capital. Their partnership aims to promote gender equality, decent work and economic growth, and reduced inequalities, in line with the mandates of the Dutch government funds MASSIF and Building Prospects, which contribute to this investment.

Joliba Capital’s remarkable first close signals a promising future for the economic landscape of Francophone Africa. Backed by influential investors and underpinned by a commitment to ESG principles, Joliba Capital is poised to champion sustainable growth and diversity in the region’s businesses, driving a surge of innovation and prosperity.

Joliba Capital Fund Joliba Capital Fund

Binance to Airdrop up to $3 million in BNB to Users in the Morocco Earthquake Region

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