Mike Mompi - Afrikan Heroes

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

September 28, 2023

Mike Mompi, co-founder and managing partner of Enza Capital

Enza Capital, a venture capital firm specializing in supporting startups focused on “organizing the offline online” and “digitizing key African industries,” recently announced the successful closure of two funds, raising a total of $58 million. This development marks a significant milestone for the Nairobi-based firm as it continues its mission to nurture and empower innovative companies in Africa.

In 2019, Enza Capital launched its first fund, which primarily targeted early-stage startups in the pre-seed and seed stages. This fund remains active and has made investments across a range of sectors, including fintech, logistics, health, human capital, and climate tech. Notably, the firm has expanded its investment horizon beyond early-stage companies and now participates in larger follow-on investments, particularly in Series B rounds.

Mike Mompi, co-founder and managing partner of Enza Capital, shared that the firm has made 48 investments in 31 different companies through both of its funds. These investments span across eight African markets, including Kenya, Uganda, Nigeria, Ghana, Ivory Coast, Senegal, Egypt, and South Africa.

Enza Capital’s investment portfolio includes companies like Guidewheel, a Kenyan climate tech startup that expanded to the U.S. and Mexico after receiving a Series A round led by Greycroft. Additionally, the firm provided early support to Kenyan fintech Shara, which is now gearing up for a Series A round led by Index Ventures. Enza Capital also co-led a Series A investment in Ivorian fintech Djamo and Kenyan insurtech Turaco from its second fund.

Enza Capital typically invests between $250,000 and $5 million in its portfolio companies, such as Autochek, Jumba, Craydel, Cloudline, and SeamlessHR. Furthermore, the firm offers the opportunity for these companies to access additional funding through Enza Growth Capital, an evergreen, later-stage investment vehicle capable of investing up to $20 million per company.

One of the standout features of Enza Capital’s approach is its commitment to long-term partnerships with portfolio companies. Mompi explained that their investment vehicles are designed to support startups from early stages through growth, allowing them to maintain a strong presence throughout their journey.

In a unique move, Enza Capital is launching a founder partner program, where founders and leadership teams of its portfolio companies become co-owners of the firm. The program allocates 10% of the firm’s carry pool back to the founders, based on factors such as referrals, initial check size, and follow-on investments. This initiative aims to strengthen trust and alignment between Enza Capital and its founders, fostering collaboration and shared success.

Enza Capital’s vision extends beyond its individual success, as the firm hopes to set a precedent for the African venture capital industry. Mompi emphasized that their shared ownership model, where the firm only wins when its founders succeed, reflects a commitment to building a supportive ecosystem for startups, acknowledging that many startups face challenges and may not achieve outsized returns.

Notably, Enza Capital stands out as one of the continent’s largest funds not backed by traditional African institutional investors, such as Development Finance Institutions (DFIs). While they anticipate more involvement from DFIs, traditional African LPs, global endowments, foundations, and pension funds in the future, the fact that they succeeded in raising funds without them underscores the growing mainstream acceptance of venture capital in Africa.

Enza Capital’s limited partners consist of a diverse group of investors, including private individuals, family offices, foundations, fund of funds, hedge funds, and venture capital funds, in addition to the founding partners. This broad range of support reflects the growing interest and confidence in Africa’s startup ecosystem and Enza Capital’s unique approach to nurturing and empowering innovative companies.

South Africa’s Root Secures $1.5M Boost from Invenfin for Global Expansion of Innovative Insurance Technology

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

South African eHealth Startup Quro Medical Secures $1.1m In A Rare Funding Round

April 15, 2021

Quro Medical, a Sandton, South Africa-based eHealth startup has landed $1.1 million after almost three years of operating secretly from by Kenya-based Enza Capital and South African VC firm Mohau Equity Partners. With the funding, the startup wants to attract and retain talent and extend into other African markets.

Mike Mompi, partner and CEO of Enza Capital — Mike Mompi, partner and CEO *of Enza Capital*

Why The Investors Invested

“As our collective healthcare systems struggle to care for patients beyond the walls of a hospital, which we’ve seen exacerbated with the onset of the COVID-19 pandemic, remote patient monitoring and healthcare delivery will undoubtedly form a core part of the lasting solution,” said Mike Mompi, partner and CEO of Enza Capital.

CEO Dr Penny Moumakwa of Mohau Equity Partners commenting on the investment said:

“We are very excited to be invested in Quro, they are a dynamic management team, building out a global medical solution, that will showcase the ability of entrepreneurs on the African continent in advanced digital healthcare.”

A Look At What Quro Medical Does

Founded in 2018, by Dr Vuyane Mhlomi, Zikho Pali and Rob Cornish in 2018 Quro Medical provides services to manage ill patients in the comfort of their homes.

Quro Medical now employs about 150 physicians. Mhlomi claims his business is a first mover in Africa, which means he anticipates the arrival of other players in line with industry trends. To meet the demands of its rising client base, the company, which now employs 150 physicians, aims to expand its hospital-at-home services and scale its operations across the world.

Most of the company’s big medical schemes (health insurance) in South Africa have been converted to customers, according to the company. They account for more than 90% of the country’s overall medical scheme market.

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