Africa-focused funds discover their ft amid a downturn

Within the midst of a funding downtime final 12 months, and with situations getting harder for fund managers elevating capital as backers (restricted companions) enhanced their give attention to technique and observe document, some new African and Africa-focused funds nonetheless emerged, with a number of of the prevailing ones receiving recent backing.

Among the many notable VC funds that got here up final 12 months embrace the $300 million Partech Africa II, the most important Africa-focused fund up to now, and Africa Folks + Planet fund by Novastar Ventures, an over $200 million pool that can spend money on agriculture and local weather sectors. In the meantime, Norrsken22, one of many greatest VCs in Africa, received recent backing for its Norrsken22 African Tech Development Fund, alongside the ultimate closing of its debut fund.

New VCs additionally continued to floor, together with Chui Ventures, which has a gender-inclusive focus in its plan to again founders in Africa centered on mass-market merchandise. Its maiden fund bagged $9 million backing from Mastercard, to serve a market that has not too long ago obtained clamor for native capital.

Africa’s enterprise capital and personal fairness fund managers secured $2.4 billion throughout 43 offers throughout the 12 months, in line with information tracker and market insights agency Briter Bridges newest report.

Wanting forward, in 2024, what funding alternatives are new funds and VCs tapping in Africa? Brian Odhiambo, a companion at Novastar Ventures mentioned alternatives abound in fintech and local weather sectors.

“We believe that the megatrends in Africa are the reason to keep investing. Africa has the world’s youngest and fastest growing population, all of whom are increasingly tech savvy. We currently have the largest available arable land and the largest carbon sink in the world outside of the Amazon. Urbanization in Africa is also the fastest growing in the world.”

Odhiambo, notably, sees huge scope for disruption within the vitality and agricultural industries noting that “much of the continent’s population is still underserved by existing energy providers and will need alternative sources of power for domestic and productive use. As the continent continues to diversify, agriculture presents a big opportunity for technological disruption. We are especially interested in technologies that help make food production efficient and sustainable.”

Chui Ventures managing companion, Joyce-Ann Wainana, an ex-Citi govt, who launched a gender-inclusive VC fund final 12 months, additionally sees a possibility to faucet world’s largest intercontinental free trade area, and African ladies, who she says are “the most entrepreneurial in the world.”

Extra to come back

Because the 12 months progresses, Ms. Wainaina expects new funds to emerge and current ones to get capitalized. Already, Seedstars Africa Ventures has obtained $40.5 million recent backing from EIB International and AfdB and Rally Cap, an early-stage enterprise capital agency centered on rising markets in fintech, has made inroads into the local weather sector with a brand new fund.

“I believe that we will see a lot more local VC funds emerging in Africa, to meet the capital needs in the market. There is a real need to support local entrepreneurs as formal employment opportunities in Africa cannot absorb the large numbers entering the job market each year. The continent will need a lot more VC funding to address this gap. Local VCs will provide stability particularly when global market sentiments are low. I remain hopeful about the future of VC in Africa,” mentioned Ms. Wainana.

Beneath we define funds that emerged or received capitalized final 12 months.

VC funds

Partech Africa II

Partech Africa is without doubt one of the most lively VCs in Africa that invests in sequence A and B tech startups constructing options for financial sectors which can be often extremely fragmented and casual in Africa.

The Partech Africa II fund reached its first shut of $263 million final 12 months, in startups in numerous sectors together with fintech, well being tech, logistics, mobility and edtech. The second fund succeeds its first fund introduced in 2018.
Fund measurement: $300 million
Goal: Sequence A and B corporations

Africa Folks + Planet Fund

Novastar Ventures’ new fund will again sustainable, planet-positive, mass-market enterprise fashions throughout Africa. The fund received $25 million backing from the U.S Worldwide Improvement Finance Company (DFC). The pan-African VC agency additionally received $40 million in multifund commitment from SBI Holdings, a Japanese monetary companies conglomerate and one of many largest enterprise capital corporations within the East Asian nation.
Fund measurement: over $200 million
Goal: The fund targets local weather and clear techs, marketplaces and initiatives that contribute to neighborhood resilience by means of the supply of economic and provide chain companies.

Founders Factory Africa
Based in 2018, FFA gives funding and hands-on help to early-stage founders constructing native options to native challenges in South Africa, and it’s backed by company and impression funding companions.

The South African early-stage accelerator and investor raised $114 million funding final 12 months. It plans to proceed investing in startups in its important fields of focus that embrace fintech, agtech and well being startups however are additionally eager on others that embrace logistics tech, e-commerce clear tech, enterprise tech, and HR recruitment.
Fund measurement: $114 million
Goal: Early-stage startups.

Africa Innovation & Healthcare Fund 2
The AHF2 fund is managed by AAIC Funding, which has supported funding actions of Japanese CVCs since 2017. It launched the Africa Innovation & Healthcare Fund 2 in 2022, which attained a second shut final 12 months to achieve $40 million. Its preliminary fund reached $47million.
Fund measurement: $150 million
Goal: The Fund will spend money on Sequence A and B corporations in Kenya, Nigeria, South Africa, and Egypt in medical and healthcare sectors and tech corporations in social infrastructure fields together with finance, insurance coverage, and logistics.

Al Mada Ventures
Al Mada Ventures (AMV) is a enterprise capital agency spin-out of Morocco’s Al-Mada holdings, certainly one of Africa’s largest non-public funding funds. Its portfolio corporations embrace Susu, a French- and Ivorian-based health-tech
Fund measurement: $110 million
Goal: The evergreen fund will deal with a niche in growth-stage corporations in monetary companies, well being, logistics, renewable vitality, mining, distribution, retail, schooling and telecom sectors.

Saviu fund II
Saviu Ventures is a Francophone Africa VC, launched in 2018. Its second fund made an preliminary shut of €12 million final 12 months, and has to this point backed Waspito, a Cameroonian well being tech; Rubyx, a Senegalese digital lending SaaS supplier; and Workpay, an HR-payroll supplier.
Fund measurement: $32 – $54 million
Goal: seed-stage startups primarily focussed on fintechs, well being techs and local weather techs.

Chui Ventures
Chui Ventures is a pan-African VC investing in early-stage startups. It was launched final 12 months and its maiden fund has already gotten $9 million backing from Mastercard’s Africa Development Fund
Fund measurement: over $10 million
Goal: It has a gender-inclusive focus and is backing African founders constructing mass-market options.

Sony Innovation Fund: Africa (SIF: AF)
Sony Ventures Company (SVC), the Japanese tech large’s enterprise arm, final 12 months put aside a $10 million fund to spend money on African leisure startups. It not too long ago invested in African gaming startup Carry1st.
Fund measurement: $10 million
Goal: Early-stage startups in gaming, music, movie and content material distribution.

P1 Ventures
P1 Ventures was launched in 2020 and reached the primary shut of its second fund at $25 million final 12 months. Its investees from the primary and second fund embrace, Gameball, Reliance Well being, Nkoloso.ai, Chari, Djamo and Yassir.
Fund measurement: unknown
Goal: P1 is investing in e-commerce, fintech, insurtech, well being tech, and SaaS and AI startups. The VC agency regards itself as a multi-stage investor.

E3 Low Carbon Financial system Fund for Africa (E3LCEF)
The E3LCEF is a climate-tech fund by early-stage VC E3 Capital (previously Power Entry Ventures), and rising markets-focused funding financial institution Lion’s Head International Companions. It reached a primary shut of $48.1 million final 12 months.
Fund measurement: $100 million
Goal: It targets photo voltaic suppliers and EV startups in sub-Saharan Africa.

Equator
Equator is a local weather tech enterprise capital agency centered on sub-Saharan Africa eager on seed and sequence A startups. The VC agency, which emerged publicly final 12 months, had an preliminary $40 million shut final 12 months and has to this point invested in SunCulture, Apollo Agriculture; Odyssey Power Options, and Roam.
Fund measurement: unknown
Goal: Equator is backing seed and Sequence A startups in vitality, agriculture and mobility sectors.

Catalyst Fund
The pan-African early-stage fund was based in 2016 as a pre-seed accelerator addressing challenges similar to funding, expertise and market entry for startups, nevertheless, in 2022 it switched from an accelerator to a VC fund and reached a primary shut of $8.6 million final 12 months. Its investees embrace Octavia Carbon; a direct air carbon seize startup, and Sand to Inexperienced, which is reworking deserts into arable lands.
Fund measurement: $40 million
Goal: Local weather associated startups together with agtechs, insurtechs, local weather fintechs and startups in fishery administration, meals techniques, chilly chain, waste administration and water administration.

Verod-Kepple Africa Ventures
VKAV is a pan-African fund launched in 2022 as a three way partnership between Verod Capital, a non-public fairness agency and Kepple Africa, a Tokyo-based enterprise capital agency. It reached a $43 million second shut in March final 12 months and secured an extra $10 million funding months later from Japan’s ICT and Postal Providers (JICT). It has to this point invested in 11 startups together with Cloudline, Chefaa and Moove.
Fund measurement: $100 million.
Goal: To spend money on sequence A and B fintech, e-commerce and logistics ventures throughout Africa.

VestedWorld
VestedWorld is an early-stage VC that primarily invests in Ghana, Kenya, and Nigeria. Final 12 months it received $10 million backing from Mastercard Africa Development Fund.
Fund measurement: unknown
Goal: It primarily invests in agribusinesses, shopper merchandise, and technology-enabled companies primarily in Ghana, Kenya, and Nigeria. Its secondary goal markets are Ethiopia, Rwanda, Tanzania, and Uganda.

DisrupTech
DisrupTech fund was launched in 2021 to again fintech and fintech-enabled corporations like insur-techs and e-commerce startups. French DFI Proparco introduced a $5 million backing into DisrupTech Ventures final 12 months.
Fund measurement: $36 million
Goal: To again early-stage ventures in Egypt’s fintech sector.

Enza Capital funds

Enza is a pan-African multi-stage VC investing in The VC agency closed $58 million throughout two funds, together with Enza Development Capital launched in 2022, final 12 months. To take a position and supply follow-on funding to startups digitizing key industries in Africa
Fund measurement: unknown
Goal: fintech, logistics, well being, human capital and local weather tech corporations.

REdimension Actual Property Know-how and Sustainability Fund I

It’s the first fund by South Africa proptech VC REdimension Capital that reached a primary close of $10 million final 12 months after its launch in 2021.
Fund measurement: unknown
Goal: Proptechs digitizing the actual property sector in South Africa.

SA SME Fund
It’s a fund for funds offering a lot wanted liquidity to later-stage VC funds in South Africa to foster entrepreneurship within the nation.
Fund measurement: $30 million
Goal: VC fund managers in South Africa

Funds that had ultimate closes

Norrsken22 African Tech Development Fund
Norrsken22 African Tech Development Fund was launched in January 2022, and reached the ultimate shut of $205 million final 12 months. Its investees embrace digital banking platform TymeBank, B2B commerce retail platform Sabi, id verification resolution Smile Identification, auto financing platform Autochek and SME lender Shara.
Fund measurement: $205 million
Goal: To spend money on Sequence A and B corporations growing fintech, edtech, medtech [health tech], and market-enabling options.

Knife Capital III
The South African growth-stage investor Knife Capital introduced a ultimate shut of its third fund, launched in 2021, final 12 months to spend money on 10-12 corporations. The agency mentioned it plans to speculate a median cheque of $3 million. It has to this point invested in DataProphet, a South African AI-as-a-service enterprise, and Kasha, a Rwandan well being entry platform.
Fund measurement: $50 million
Goal: To spend money on B2B corporations principally edtech, healthtech, fintech, AI and agritech ventures, and bridge sequence B funding hole in South Africa.

Gaia Power Affect Fund II
The fund, which is a brainchild of Gaia Affect, Capital Croissance, Schneider Electrical, Capelan, and Investisseurs & Partenaires (I&P) is investing in “sectors encompassing decarbonized energy access, productive energy utilization, electric mobility, new energy solutions, and enabling technologies.”
Fund measurement: €80 ($86) million
Goal: GEIF II will spend money on seed, Sequence A, and Sequence B startups and SMEs within the renewable vitality worth chain, with 85% of them from sub-Saharan Africa.

Power Entrepreneurs Development Fund
EEGF is an initiative by Shell Basis and FMO, launched in 2019, and gives mezzanine, fairness, and debt investments. The fund is collectively managed by Dutch impression funding supervisor Triple Leap, and off-grid sector enterprise builder Persistent. The fund reached a ultimate shut final 12 months.
Fund measurement: $125 million
Goal: early and growth-stage corporations within the vitality sector in Africa.

Seedstars Youth Wellbeing Ventures
Seedstars Capital and Swiss philanthropic basis Fondation Botnar launched Seedstars Youth Wellbeing Ventures fund final 12 months. The evergreen funding car will again startups together with people who advance well being companies, environmental sustainability and ecological resilience (like entry to scrub vitality), native meals safety, water and sanitation, waste administration, inexpensive housing, entry to employment and protected and sustainable transportation in Tanzania, Ghana, Senegal, Morocco, and Egypt.
Fund measurement: $20 million
Goal: pre-seed to Sequence A startups

Pepea fund
Affect investor Goodwell Investments and Oxfam Novib, a Dutch basis and Oxfam Worldwide affiliate, arrange Pepea, the fund, to offer financing to early-stage startups in Kenya, Uganda and Ethiopia. The fund, created with the backing of Oxfam Novib Affect Investments, will mezzanine finance, which is a debt that may be become fairness.
Fund measurement: €20 million
Goal: Early-stage companies which were in existence for one to 5 years. It should spend money on companies in sustainable agriculture, vitality, clear mobility, logistics and waste administration sectors, which produce fundamental items and companies that characterize an enormous proportion of family spending for lower-income communities.

Non-public Fairness Funds

Alterra Capital Companions
Alterra Capital, an Africa-focused non-public fairness agency backed by Africa’s richest man Aliko Dangote, secured $140 million. Its investees embrace Nigeria on-line journey firm Wakanow, regional banking establishment Entry Financial institution, and logistics firm J&J Africa.

Fund measurement: $500 million.
Goal: It invests in a lot of sectors together with shopper items, telecommunications, know-how, logistics, healthcare.

Convergence Companions Digital Infrastructure Fund
The fund, launched by PE agency Convergence Companions, hit a ultimate close final 12 months, and plans to play a pivotal position in making certain sustained progress of digital applied sciences throughout sub-Saharan Africa.
Fund measurement: $296 million
Goal: The fund will primarily spend money on “digital infrastructure opportunities” and this contains investments in fiber networks, information facilities, wi-fi, towers, cloud, Web of Issues (IoT), synthetic intelligence (AI) and others which can be important within the progress of the African digital financial system. Moreover, in addition to investing in bodily property, it’s eager to help tech-enabled companies that help entry to schooling, monetary companies, healthcare, and different important companies.

uMunthu II fund

uMunthu II fund, by Goodwell Investments and Alitheia Capital, each impression non-public fairness corporations with in depth expertise in Africa, reached a primary close of €57 million ($61 million) final 12 months.
Fund measurement: $150 million (minimal goal)
Goal: native entrepreneurs and offering native options to native points, notably these “ensuring high-quality, reasonably priced goods and services for underserved low-income groups.”

Sanari 3S Development Fund
Sanari 3S Development Fund is by outstanding South-African non-public fairness agency Sanari Capital, that had a second shut of $65 million final 12 months.
Fund measurement: $100 million
Goal: It invests in “founder-run, owner-managed and family-owned businesses across the mid-market segment.”

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