Ventures Platform, certainly one of Africa’s main seed-stage enterprise capital companies, has introduced the $64 million first shut of its second fund, VP Pan-African fund II. The fund, which is concentrating on a last shut of $75 million, will deepen the agency’s seed-stage investments and increase its scope to catalyse Collection A rounds throughout the continent.
The fund is backed by a various group of worldwide traders, with 70 per cent of commitments coming from the agency’s first institutional fund. New and returning traders embody the Worldwide Finance Company (IFC), Customary Financial institution (South Africa), British Worldwide Funding (BII), Proparco, MSMEDA, and AfricaGrow.
Notably, the fund incorporates a first-of-its-kind participation from Nigeria’s Funding in Digital and Artistic Enterprises (iDICE) program, a government-backed initiative aimed toward positioning Nigeria as a world hub for digital innovation.
A strategic shift to catalyse Collection A rounds
With its new fund, Ventures Platform will strategically deepen its funding scope. Whereas sustaining its basis in pre-seed and seed-stage investments, the fund will now additionally lead and catalyse Collection A investments to de-risk high-potential ventures and improve worth creation.
Geographically, the fund will consolidate the agency’s actions in Francophone Africa and speed up its pan-African enlargement into North Africa, whereas doubling down on its core markets, together with Nigeria. The agency will prioritise ventures constructing “painkiller” options that handle non-consumption and plug infrastructural gaps in key sectors corresponding to fintech, healthtech, agritech, edtech, and AI.
Kola Aina, founding associate at Ventures Platform, commented: “The backing we’ve obtained from a various group of blue-chip companions is a robust endorsement of Africa’s place because the purest, most uneven supply for non-consensus alpha and transformative impression. The continent’s innovation alternative is boundless, the wants are immense, however realising its full impression calls for sensible contextual capital, post-investment worth creation, and a dedication to de-risking groundbreaking market-creating improvements.
“We consider Africa’s challenges are its best alternatives. By supporting resilient founders, we’re catalysing sustainable, market-creating improvements that may form the way forward for the continent and plug gaps for the following billion.”
A brand new mannequin for public-private partnership
The funding from Nigeria’s iDICE programme indicators a major new collaboration between private and non-private capital to gas innovation on the continent.
Dr Olasupo Olusi, MD/CEO of the Financial institution of Business, the implementing company for iDICE, mentioned: “Because the implementing company of the iDICE Programme, Financial institution of Business is proud to be related to Ventures Platform on this milestone achievement. By investing in Ventures Platform’s Fund II, which serves as iDICE’s Expertise Fairness Fund for Nigerian startups, we’re deepening the Federal Authorities’s goal of upscaling the Nigerian expertise and artistic sectors by catalyzing strategic investments in high-growth, technology-enabled enterprises and the innovation ecosystem.”
This native backing is supported by main worldwide improvement finance establishments (DFIs) and banks, who cited their confidence within the Ventures Platform crew.
Nimalan Reddy, government vice chairman at Customary Financial institution South Africa, mentioned: “Customary Financial institution is proud to proceed our partnership with Ventures Platform into Fund II. It is a testomony to the standard and power of the Ventures Platform crew and our dedication to supporting excessive impression entrepreneurs throughout Africa.”
Françoise Lombard, chief government officer of Proparco, added: “We’re proud to resume our help to Ventures Platform… As our first fund funding below the EU-backed Select Africa VC program, it underscores our confidence within the crew and our continued dedication to backing the tech ecosystem in Nigeria and throughout Africa”.
Farid Fezoua, IFC international director for disruptive applied sciences, companies and funds, additionally famous: “IFC’s funding in Ventures Platform Fund II will assist early-stage startups transfer from proof-of-concept to development, accelerating innovation in sectors like fintech, healthtech, edtech, and agtech, whereas additionally strengthening native worth chains and creating high quality jobs.”
A monitor document of backing unicorns
Since its inception in 2016, Ventures Platform has funded over 90 startups. Its portfolio contains a few of the continent’s most profitable fintechs, corresponding to Moniepoint (Africa’s latest unicorn), Piggyvest, Raenest, LemFi, and Paystack (acquired by Stripe).
The agency’s portfolio firms have gained worldwide recognition. Moniepoint, OmniRetail, and Thrive Agric have been all named among the many Monetary Instances’ 2024 listing of Africa’s 25 fastest-growing firms.
