With the creation of over 20 new venture capital funds and a 74% rise in equity investments into digital start-ups in 2019, Africa is seeing a tremendous expansion in venture capital. Investors grant firms with long-term growth prospects this private equity capital. The continent’s startup scene, which encompasses finance, healthcare, and renewable energy, is booming with creative concepts and a culture of entrepreneurship. The development of new businesses is made possible by venture capitalist firms and investors, who also have a significant impact on the future of the continent by offering finance, mentorship, and strategic advice. Here are some top venture capital firms of Africa.
Vantage Capital
In 2001, Colin Rezek, a Cape Town resident, founded Vantage Capital. Apart from Vantage Capital, he was also a member of the Rezek Motor Group founding group. In addition, he founded MMR Equity Capital, a private equity management firm that is currently known as Vantage Capital Group after a 2001 merger. Its Mezzanine division has undertaken 27 investments total since 2006, including stock investments and other investments. In contrast, 14 loan investments in South African solar and wind energy projects have been made by Vantage Capital’s GreenX branch. Over US$ 1.1 billion has been raised for African businesses. Additionally, it primarily concentrates on the Southern African Region as its preferred investment region.
Portfolio: Rosslyn Riveria, New GX Capital
Key Sectors: Commercial Services, Forestry, Financial Services, Software
Website https://www.vantagecapital.co.za/
Convergence Partners
Andile Ngcaba established this Johannesburg-based company in 2006. Furthermore, Mr. Ngcaba has been a member of The National Advisory Council on Innovation (NACI) council and the board and high-level panel in charge of the conclusions of the Netmundial multi-stakeholder conference on Internet governance. Convergence Partners is a pan-African private equity firm that specialises in technology. Its primary focus is on programmes that make new technologies, internet services, and communication more accessible to Africans. It is among the best venture capital firms in Africa as a result.
Portfolio: Bloodhound, Britehouse, DFA, Comsol, Inala Broadcast, and LifeQ
Key Sectors: Technology, Media, and Telecom sector
Website https://www.convergencepartners.com/
Capital Eye Investments Limited
2011 saw the founding of Capital Eye Investments Limited by John Bright and Duncan Coles. One of the best venture capital firms in Africa, Capital Eye Investments, employs Duncan Coles as a non-executive chairman at the moment. In addition, Mr Coles has previous experience serving as a UCS group director on the board. It is a venture capital and private equity firm that makes investments in IT and tech-related businesses. Moreover, has a preference for spending money on software and IT services. Companies under its portfolio include Crossfin and Argility. It is among the best venture capital companies in Africa as a result.
Portfolio: Argility and Crossfin
Key Sectors: IT Services and Software
Website https://capitaleye.co.za/
Knife Capital
Knifecap was formed in 2010 by Eben van Heerden and Keet van Zyl, who are based in Cape Town, South Africa. Furthermore, Keet van Zy was a co-founder of Grindstone Accelerator, KNF Ventures, and AngelHub. The SA venture capital branch of “Here Be Dragons,” a privately held developing market investment firm started by internet entrepreneur and astronaut Mark Shuttleworth, is now known as Knife Capital. Knife Capital makes investments through a group of managed funds that includes UK-based Draper-Gain Investments and KNF Ventures, a SARS section 12J Venture Capital Company. Knifecap mostly favours making investments. Furthermore, its favoured investment locations are in Southern Africa and the United Kingdom.
Portfolio: KNF Ventures and Draper-Gain Investments.
Key Sectors: B2B, Communications and Networking, Services (Non-Financial), Software
Website https://knifecap.com/
MBO Capital Management
MBO Capital Management is a Nigerian private equity firm with its headquarters located in Lagos. It mostly makes investments in small and medium-sized businesses. Additionally, Nigeria and Anglophone countries are its primary investment areas. Additionally, it seeks to give early-stage businesses and enterprises funding for expansion. Furthermore, MBO Capital Management is eager to raise a US$100 million fund. This fund will pay particular attention to businesses that are based in Sierra Leone. Moreover, this fund will not be sector-specific. To put it another way, it will be industry-specific and cover FMCG, agro-processing, non-bank financial institutions including microfinance, and entertainment. This is one of the best venture capital companies in Africa. And lastly, among their present investments are.
Portfolio: Sterling Realties, Sterling Virtual Office, Inkblot Productions Ltd, and NFC Agroprocessing Ltd
Key Sectors: Microfinance, Agro-processing, and Entertainment
Website https://www.mbocapital.com/
4Di Capital
4Di Capital is a venture capital firm with its headquarters in Cape Town that specialises on high-growth technology venture prospects. It is partnered with four people. Specifically, Erik Van Vlaanderen, Anton van Vlaanderen, Laurie Oliver, and Justin Stanford. It’s among Africa’s top venture capital companies. Moreover, it comprises three funds: 4Di Exponential Tech Fund, 4Di Capital Fund I, and 4Di Capital Fund III. 2011 saw the opening of 4Di Funding Fund I, the company’s first fund dedicated to general early-stage venture funding in the technology sector. In addition, 4Di Capital’s second fund, The 4Di Exponential Tech Fund I, was established in 2016 to pursue scalable technological prospects. The company’s third fund, the 4Di Capital Fund III, was introduced in 2019 with the SA SME Fund serving as anchor LP.
Portfolio: Aerobotics, LifeQ, InvestSure, Flare, and Bloodhound
Key Sectors: Technology
Website https://4dicapital.com/
Launch Africa Ventures
A pan-African investment firm called Launch Africa Venture is committed to closing the financial gap that has stifled the development of several creative African entrepreneurs. It collaborates with companies in the Seed and Pre-Series stages, offering them the funding, enterprise solutions, and human capital required to grow their businesses. Launch Africa Ventures concentrates on B2B and B2C technology firms that are addressing significant issues in Africa. With more than 130 enterprises from more than 22 African nations, it has an impressive portfolio. Among the notable businesses on Launch Africa’s database are Bypass, Kuda, MVX, Peach Payments, and Workpay. A variety of investment ticket sizes ranging from $200,000 to $300,000 are offered by Launch Africa. It is therefore one of the major financial partners in the startup ecosystem of Africa.
Portfolio: Kuda, MVX, Peach Payments, Workpay, and Bypass
Key Sectors: B2B and B2C Technology
Website https://www.launchafrica.vc/
Algebra Ventures
Algebra Ventures is a venture capital business that actively partners with African early-stage digital firms, giving them the capital they need to thrive. It mostly concentrates on creative technological startups that are using cutting-edge approaches to solve social and commercial issues. It seeks to support their development, enhancement, and growth. Since its founding in 2016, Algebra Ventures has grown to become a significant participant in the African startup scene. The company primarily operates in North Africa and has a strong portfolio of startup businesses, with a focus on the e-commerce, finance, and logistics industries. It has successfully disclosed about $144 million in funds since it started operating. It has also wisely used this fund to give entrepreneurs the funding, mentoring, and strategic direction they need to quicken their growth trajectory.
Portfolio: Khazna, Trella, Yodawy, Halan, and Eventus
Key Sectors: E-Commerce, Fintech and Logistics sectors
Website https://www.algebraventures.com/
LoftyInc Capital Management
Specialising in venture capital, LoftyInc Capital Management gives African small and medium-sized businesses (SMBs) access to all the resources they require for expansion. It focuses on early-stage businesses, offering financial support to help them increase their output and expand. LoftyInc Capital Management approaches company investment in an industry-neutral manner. Rather, it concentrates on discovering digital firms that tackle social and economic issues in Africa. Its main focus is on startups that have creative solutions. Through collaborations and investment, it has influenced several firms since it started operations in 2011. With more than a hundred businesses at various fundraising phases, its impressive portfolio profile is impressive. Among the most well-known names on the list are Flutterwave, Printivo, Homefort, and Reliance HMO.
Portfolio: Reliance HMO, Printivo, Homefort, and Flutterwave
Key Sectors: Identifying Technology
Website https://loftyinc.vc/
TLcom
Venture finance company TLcom focuses on technology investments in Sub-Saharan Africa. It offers funding and strategic advice to businesses in the early to growth stages to help them expand more quickly. Fintech, consumer internet, and corporate software service providers are the main areas of concentration for TLcom. It collaborates with and supports creative entrepreneurs who use technology, especially in the fields of information technology and communications, to address pressing issues in Africa. With over 20 years of experience, TLcom has had a significant influence on the startup and investment environment. The business has assisted several start-ups in becoming self-sufficient conglomerates. The company’s portfolio now includes some of the greatest brands in the industry, including Pula, Vendease, Andela, Seamless HR, Ilara Health, and Twiga Foods.
Portfolio: Twiga Foods, Andela, Terragon, Seamless HR, Ilara Health, Pula, and Vendease
Key Sectors: Fintech, Software Services
Website https://tlcomcapital.com/
Verod Kepple Africa Ventures
A venture capital business called Verod Kepple Africa aggressively promotes and supports the creation of novel ideas that spark revolutionary shifts throughout Africa. The organisation actively collaborates with and supports outstanding entrepreneurs who are bridging the gaps between the current situation and the idealised future of the continent. Kepple Africa and the private equity firm Verod Capital merged to establish the company. As a result, it brings together the knowledge of Kepple Africa Ventures and Verod Capital Management, combining a plethora of venture capital and private equity investment experiences. Verod Kepple finds great entrepreneurs and gives them the funding, direction, and operational help they need by leveraging its wide network and industry expertise.
Portfolio: Chari, Moove, Nowpay, Shuttlers, Julaya, and Ceviant
Key Sectors: Fintech & Enterprisetech
Website https://vkav.vc/
Partech
Leading venture capital company Partech specialises in technology investments in Africa. It seeks to aid in the creation of scalable solutions that deal with urgent issues and promote economic expansion. As a result, it finds and helps high-potential businesses throughout the continent. The core of Partech’s investment approach is giving early- and growth-stage funding to businesses that use technology to deliver financial, healthcare, and educational services. A wide variety of companies are represented in Partech’s portfolio, which reflects the company’s dedication to assisting projects with the potential to be game-changing. Among the well-known startups in Partech’s portfolio are Yoco, Zolar, TradeDeport, Wave, Orus, Nomba, and Yoco.
Portfolio: JustDial, Knowlarity, Practo, iYogi, bankbazaar.com
Key Sectors: Nomba, Orus, TradeDeport, Wave, Yoco, and Zolar
Website https://partechpartners.com/
Future Africa
A Pan-African venture capital business called Future Africa works with early- and seed-stage technological firms to support their expansion. It finds exceptional African startups and gives them the capital they require to grow, develop, or scale their businesses. Although the firm didn’t formally launch until 2020, it has already become a major force in the African startup scene. It is mostly concerned with the technology that businesses offer.
Portfolio: Kobo, Indicina, Kasi, Moniemie, Bamboo, Spleet, and MarketForce
Key Sectors: Fintech, Logistics, and IT services
Website https://www.future.africa/
Conclusion
Venture capital investment is surging in Africa, with Nigeria and Kenya emerging as the leading hubs for financing and advising start-ups. With over 8,300 African entrepreneurs obtaining over $1 billion from significant international investment companies in 2021, the continent’s venture capital sector was more vibrant than ever. In the previous year, four African companies attained unicorn status, suggesting that overall venture funding might rise in 2022. Venture capital firms continue to complete multi-million dollar rounds on startups despite the coronavirus pandemic, underscoring the significance of money for emerging enterprises in Africa.
