Venture Platform, an early-stage venture capital fund focused on startups in Africa, said it has closed the first tranche of its new $40 million pan-Africa, early-stage fund which it plans to invest in market-creating innovations.
The funding round marks the company’s first official institutional fund and attracted mostly local investors both in the public and private sectors. The Nigeria Sovereign Investment Authority (NSIA), led the investment with participation from existing investors and some new investors as well. The local investors include UAC Nigeria, VFD Group, Gbenga Oyebode, Shola Akinlade (Paystack), and global are Michael Seibel (Y Combinator) and Adam Draper.
Venture Platform plans to close a second tranche of the fund in early 2022 and will feature investment from select global institutional investors and DFIs.
Since it was launched in 2016, Venture Platform has raised over $500 million in follow-on rounds. It has acted as a key partner and conduit for international funds and stakeholders seeking a reliable and experienced partner to do business in Africa. The company has backed 69 tech companies in Africa, building a robust portfolio that culminated in one of the largest exits the tech ecosystem has witnessed through Paystack. In 2021 alone, it has amassed a total of 28 deals and its portfolio of 69 tech companies include Mono, PiggyVest, Seamless HR, and Paystack.
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The company noted in a statement that the new fund introduces the benefit of strong local limited partners (LPs) participation and strengthens Venture Platform’s ability to institutionalise its track record of collaborating with LPs and investors from North America, Europe, and Asia, who need a reliable partner to work alongside when investing in the African technology space.
“As operators ourselves, we know what it takes to build a successful business on the continent, and we’ve spent years partnering with visionary founders effectively tackling some of Africa’s hardest problems. Now is the time to go even further,” said Kola Aina, founder and General Partner at Venture Platform. “We’re fully maximising our deep expertise navigating the nuances of the African market, and as we move ahead, we’re developing a global network of LPs in more established markets like Europe, the USA, and Asia, many of whom partner with us due to our track record of backing winners, and they appreciate our on-the-ground experience and access to opportunities, which is vital for generating returns.”
The company has since partnered with some of the leaders in the tech space in Africa as Venture Partners, including Seni Sulyman (ex-VP at Andela, ex-COO at Bellhop, founder at Black Ops).
Following the funding, the company plans to increase its ticket size to over $1 million enabling it to fund follow-on rounds of successful startups building market-creating innovations across pre-seed, seed, and Series A stages in sectors including fintech healthcare, enterprise SaaS, digital infrastructure, and more.
Uche Orji, managing director, and CEO, NSIA said participation in the fund aligns with the Authority’s objectives of stimulating growth by enabling new and innovative intramural technology to empower the continent.
“To harness and unleash Nigeria and Africa’s potential, we are of the opinion that investment in ventures in the innovation and technology space is essential,” Orji said. “In this regard, the Authority is proud to play a role in facilitating what it expects will lead to the rise of Africa.”
