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Founders, are you building a great company that accelerates financial inclusion? Are you raising a $200k-$2M round? Keep reading to learn about our convictions and approach.  And apply below!

INVESTMENT APPROACH FAQ'S

Why are we investing in African fintech?

Africa as a whole is poised for tremendous growth over the next 25 years. With a confluence of a growing, youthful population, a rising middle class, technological leapfrogging (Africa is home to half of the world’s mobile wallets), stronger governments and institutions, and abundant natural resources, Africa is increasingly considered by investors to be the next growth frontier.

Of all the opportunities in Africa, Fintech is one of the most scalable and impactful.

  1. Fintech is  one of the most scalable opportunities today in Africa. We now have close to 10 unicorns in Africa, and most of them are fintechs. Investors across the globe are coming to Africa to make their first investments, with the largest proportion in fintech. (McKinsey: African fintech revenues will grow 8x in the next 3 years) African fintech revenues is expected to reach $65B by 2030. Using conservative multiples, that means hundreds of billions of dollars of market cap will be unlocked in this decade.

  2. Fintech is impactful - a multiplier for entrepreneurial ventures. Fintech solves problems that will enable a wave of new entrepreneurs to flourish. Reducing the cost of doing business - making payments more efficient and easy, creating wiser access to credit, having savings & investment products for the everyday African, creating insurance that makes sense - solves problems, reduces the cost of “doing life,” and brings jobs and growth to African economies.

2

What specifically in Fintech are we focused on?

  1. We invest in financial inclusion. This means small businesses and consumers will have better, easier, more appropriate, and/or cheaper access to new financial products and services to do business or “do life” better. 

  2. Fintech can be categorized as 5 “themes” - savings, lending, investments, insurance, and payments. We will be considering ventures in all 5. However, we are possibly even more interested in "fintech-adjacent" companies. Many of the continent’s most important problems will be solved with B2B software-enabled solutions that include fintech – but wouldn’t be considered “fintech” companies. Very often, the primary solution is software that automates and/or digitizes key business processes, which then enables market penetration and data capture that unlocks financing, payments, and other fintech opportunities. We also believe these models can scale quickly while getting to profitability earlier than typical venture-backed companies. 

  3. We also like multi-dimensional moats built on data, b2b/SaaS/platform business models, network effects, and key customer acquisition / distribution advantages.

3

What type of entrepreneurs are we looking for?

We typically also prefer entrepreneurial teams with the following characteristics:

  • At least 2 co-founders

  • Good both "fin" and "tech."

  • Resilient in tough times

  • Know when to persevere and when to pivot

  • Purpose-driven and profit-savvy

  • Intentional about building culture

 

And we have an emphasis on local and female founders.

4

What stage of company are we looking for?

We are looking for companies that:

  • Have secured their first set of loyal customers and local investors.

  • Are in the seed / post-seed / Series A stage.

  • Are post-revenues with at least 3 customers

 

We typically write first checks $100k - $500k in priced rounds (or SAFE value capped rounds) of $1-20M. We will also typically follow lead investors we know and trust. Some of the companies in our current portfolio: Kwara, Pezesha, Fingo, Leta, Zeraki, and Qhala. We prefer to utilize SAFEs, equity, and convertible notes (we do not offer debt). We plan to deploy the majority of the Fund in second half 2024 through late 2025.

5

How do we add value beyond capital?

  • We've started several companies ourselves, experiencing both big failures and big successes. We know the 0 to 1 entrepreneurial journey well and can provide practical advice and perspective. We know the value of just the right advice at just the right moment, as we've relied on those who have gone before us. We've been in those shoes. We've helped founders raise additional aligned capital (debt and equity), find new customers, secure key C-suite talent, and navigate tricky strategic decisions.

  • We are passionate about product-market fit and our Entrepreneur-in-Residence in Nairobi engages directly with founding teams. We aren't afraid to roll up our sleeves.

  • We work on exits from day 1. We have an Operating Partner based in Silicon Valley who has been building exit partner relationships with global fintechs interested in emerging markets -- this helps us craft and guide our portfolio companies to exit. We also have connections in the SE Asia and LATAM markets and can help portfolio companies expand into those regions. We believe that many global tech companies of the future will start from Africa. We also have connections to the US VC landscape, as our own companies have raised tens of millions of venture capital dollars from them.

Portfolio company Leta in Nairobi

Interested in applying for funding?

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