Good news is that the number of local venture capital funds in Africa keeps increasing. Added to the list is the newly launched $3 million fund for early stage startups in Africa from Pacer Ventures, a venture capital firm for sub-Saharan Africa. The fund is aimed at solving the most critical problem on the continent.

“We see a huge opportunity to support early stage founders who are making meaningful contributions to their local economies and communities by leveraging the high mobile penetration on the continent,” Gbemi Akande, General Partner at Pacer Ventures said. 

Here Is What You Need To Know

• The firm invests mostly in the seed rounds of early stage startups. Already, it has invested in the Lagos-based fintech startup VPD.Money.
• Registered in Delaware, with operational offices in Lagos and Johannesburg, Pacer VC is focusing on verticals that are expedient to the African continent, including healthcare, financial inclusion, education and agriculture.
• The average cheque size of the VC is six figures.

“We won’t just write a cheque, we will enable founders to work in and on their business, by supporting them along every step of their journey, with resources and access to markets,” Antoinia Norman, General Partner at Pacer Ventures in charge of Southern Africa said.

Pacer Ventures fund

Read also: African Startups Raised $1.4bn In 2019 Says African Private Equity And Venture Capital Association’s First VC Report

What The Venture Capital Firm Looks Out For In A Startup

“We invest in tech founders solving the most critical problems and increasing the rate of tech adoption at the bottom of the pyramid. Our focus is on early stage investments within the sectors that have the biggest impact on the continent,” the VC noted on its website. Check out which sectors are hot deals for investors in Africa, here. 

“We are leveraging our in-depth experience in startups and ecosystem development to take advantage of the early-stage funding gap in Africa,” Geoffrey Weli-Wosu, General Partner at Pacer Ventures and Co-Founder of VoguePay and Domineum, said on the Pacer VC investment thesis.

The General Partners of Pacer Ventures have over 30 years of combined experience in entrepreneurship and start deal flow sourcing. The key differentiator is the fund’s focus on sourcing high potential African startups, leveraging its strategic partnership with Founder Institute in Africa as a funnel.

“This collaboration with Founder Institute gives us an undeniable edge particularly with quality deal-flow at an early stage and we will leverage this to spread our footprint quickly,” says Chukwuemeka Agbata, Regional Director of Founder Institute in Africa and Co-founder of techbuild.africa.

How To Apply To The Fund

Applications are on a continuous basis. Interested African early stage startups can pitch the VC here. 

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