• Sunday, June 23, 2024
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African early-stage startups to get $10m support amid funding drought

Breaking the Impasse: Unlocking early-stage funding with convertible securities

OpenseedVC, a new venture capital firm focused on Europe and Africa, has launched its first $10 million early-stage fund to back experienced operators launching technology companies.

The fund aims to invest in at least 60 startups over the next five years, with a particular interest in the future of commerce (B2B software, AI, fintech) and future of health and work sectors.

In a statement, the VC, which is led by Maria Rotilu, disclosed that the fund looks to address the challenge faced by many first-time founders – a lack of both capital and guidance in the crucial early stages.

“The current difficult fundraising climate is especially harsh for early-stage founders, but we believe incredible companies are born in the most difficult macroeconomic climates,” said Rotilu. “We want to be first believers in these experienced operators to give them a great head start, with capital and an extensive operator network that support from start to launch of their technology companies.”

The company noted that it will not only offer investment capital of up to $150,000 but also access to a network of over 50 experienced operators who can provide support and mentorship.

It further stated that its focus on operator-led ventures fills a gap in the investment landscape, particularly in Europe and Africa.

“With only 8 percent of VC firms in these regions led by former operators, compared to nearly half in the US, OpenseedVC offers a valuable resource for founders seeking investors who understand the challenges they face,” it added.