The dreams of a young Japanese venture capitalist, Takuma Terakubo, of investing in up to 200 African startups in the next few years are still very much alive. From launching a US$4.5m fund with Leapfrog Ventures in 2018 to launching another $18m fund under Samurai Incubate Africa in 2020, Terakubo’s latest move is that he has doled out yet another $15m venture capital fund, specifically targeting African startups, under the name Uncovered Fund. Not that he likes the use-and-dump approach, but that he has found a way of investing differently.

“We do not make scattered, one-shot, small investments, but rather we provide long-term growth support, including follow-on investment. In addition, we not only invest, but we also multiply the huge assets of Japanese companies to grow the business and provide technical support and finance as well,” Terakubo said, of the latest fund. 

The VC which was formed in 2020, and which has its offices in Kenya, Nigeria and South Africa, had already made investments. It had invested in Kenyan e-commerce company Sky.Garden and Nigerian e-health start-up RxAll in December last year, while Togolese super app Gozem, Kenyan fintech startup LipaLater, and Nigerian logistics platform SEND Technologies have been funded so far this year. 

“We are looking for African startups to expand their business across multiple countries. So, we welcome startups from any country as long as the business can scale,” said Terakubo.

The new Fund which will provide $50k-500k investment and growth support for seed early stage African startups, will close for investors at the end of June 2021. 

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“In 2017, when I visited Africa for the first time, I witnessed a world where startups are creating living infrastructure related to energy, public transportation, logistics, medical care, etc., for people. These are things usually created by the government. I still remember trembling from the bottom of my heart as to whether we could take on such a big challenge in Africa… I think that Africa has a great digital economy future, I mean the way everything is being created at a tremendous speed centered on digital,” Terakubo said.

Uncovered Fund, once again, joins a host of other Japanese VCs actively investing in early stage startups in Africa. Kepple Africa Ventures, active since 2019, has invested in car listing platform AutoChek as well as in Kenya’s UTU Tech. Mobility 54 Investment Fund of Toyota Tsusho has been active in the continent’s mobility sector, investing, notably, in Uganda’s Tugende, Kenya’s Data Integrated and Sendy, South Africa’s WhereIsMyTransport, among others. 

Read also: Kenyan Logistics Startup Amitruck Secures Pre-seed Funding Round

Which Startups Would The New Fund Invest In?

The new fund will target startups in the following areas:

1. Retail: Sales promotion, business management and distribution DX support for retail stores where 90% are operated as individual stores 

2. Fintech: A lending and payment method that meets the rapidly increasing purchasing demand of the middle class in Africa

3. Health Tech: Build a digital medical system that allows everyone to access the medical care and medicines they need with less burden 4. Logistics: Streamline logistics, reduce costs, streamline the movement of goods through traceability and cold chains.

5. MaaS: Reduce waste of travel by utilizing data that is
environmentally friendly and optimizes the movement of people in Africa, where there is no public transportation.

6. Agri / FoodTech: Sustainable nutrition supply to meet food demand and improvement of livestock and agricultural productivity

7. Smart City: Formation of a decentralized and sustainable
recycling-oriented society that supports urban development in Africa. 

How To Pitch

Visit Uncovered Fund’s website for more information. 

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

Uncovered Fund