Ventures Platform closes a $40 million Pan-African fund to boost investment in early-stage startups
Ventures Platform closes a $40 million Pan-African fund to boost investment in early-stage startups
An Africa-focused venture capital firm, Ventures Platform has announced the first close of its new US$40 million Pan-African Fund, which has a target investment size of $1 billion.
A consortium led by the Nigerian Sovereign Investment Authority made the investment, which was aimed at early-stage startups in Nigeria (NSIA). Additionally, it attracted existing Nigerian investors as well as a number of newcomers to the country. UAC Nigeria, VFD Group, Gbenga Oyebode, and Paystack's Shola Akinlade are among the companies that have invested in the project. Global investors, including Y Combinator's Michael Seibel and Adam Draper, are also taking part in the venture capital fund.
The VC expects to complete the second close of its Pan-African fund in the first quarter of 2022. Aside from that, it is anticipated to attract investment from a select group of global institutional investors as well as development finance institutions.
In a statement, Ventures Platform stated that it plans to use the funding to significantly expand its long-standing presence in Nigeria and West Africa. Also planned are investments in select opportunities across East, North, and Francophone Africa – with the potential to expand into key markets in West Africa. The company also plans to invest in select opportunities across Latin America.
A statement from Mr Uche Orji, MD and CEO of NSIA, stated that participation in the new fund is at the heart of its objectives, which include stimulating growth and empowering the continent by using new and innovative intramural technology.
"We believe that investment in ventures focused on innovation and technology is critical in order to fully realize Nigeria's and Africa's potential to their fullest extent. In this regard, the Authority is proud to have made a contribution to what it hopes will be the rise of African civilization "he explained.
More than $500m raised, portfolio of 69 startups
Ventures Platform is a seed-stage venture capital fund that is committed to supporting Africa's next generation of entrepreneurs at their early stages of development. In addition to financing early-stage startups across Africa, the venture capital firm has served as a critical partner and conduit for international funds and stakeholders looking for a dependable and experienced partner to do business in the continent since its founding in 2016 by General Partner Kola Aina.
This makes the fund one of the largest and most elite venture capital funds in Africa's technology venture capital space, with 69 startups under management at any given time. Its portfolio includes well-known brands such as Seamless HR, Piggy Vest and Mono, as well as Paystack – which Stripe acquired for more than $200 million in October 2020, according to the company. In the first quarter of 2021, the venture capital firm has already made 28 investments.
There is a physical presence of the company on the continent, and the company has extensive experience in corporate partnership development, talent acquisition, business growth, compliance with regulatory requirements, and operations. A source close to the company says that the additional funding will allow it to institutionalize its track record of collaborating with limited partners and investors from North America as well as Europe and Asia who are looking for a dependable partner when investing in the African technology space.
The latest capital infusion also positions it to significantly increase existing investments in its category-leading portfolio in subsequent rounds as a result of the capital infusion.
This is the investor's first official institutional fund, with previous capital raised through syndicate and proprietary capital funds. The investor's portfolio has raised more than $500 million in follow-on capital to date, and as it seeks to maintain its market leadership position, this is the investor's first institutional fund.
With ticket sizes ranging from $1 million to $1 million+, Ventures Platform is now well-positioned to fund follow-on rounds of successful startups developing market-creating innovations at the pre-seed, seed, and Series A stages in sectors such as Fintech, healthtech, enterprise SaaS, and digital infrastructure. Ventures Platform is currently accepting applications for follow-on rounds of successful startups in sectors such as Fintech, healthtech, enterprise SaaS, and digital infrastructure.
And the General Partner couldn't be happier with the team's performance to this point in the season."
He went on to say that the fund is committed to fully leveraging its extensive expertise in navigating the complexities of the African market to its full potential. The company is also developing a global network of limited partners in more established markets such as Europe, the United States, and Asia. Many of these limited partners have chosen to partner with the company because of the company's track record of backing winners and their appreciation for the company's on-the-ground knowledge and access to opportunities.
Ventures Platform has also brought on board some of the most prominent figures in African technology, including Seni Sulyman, as Venture Partners (ex-VP at Andela, ex-COO at Bellhop, Founder at Black Ops.)
