Ventures Platform's Strong Investment Returns and Strategic Focus
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| Ventures Platform's Strategic Investments Drive Success Across Africa Despite Market Challenges Image credit: TechCrunch |
Ventures Platform, one of Africa’s leading venture capital firms, reported significant returns on four out of six investment cohorts in its 2023 impact report.
The firm, which has invested in over 90 companies, continues to make strategic investments across various sectors in Africa, with a particular focus on startups that address critical challenges faced by low-income populations, such as healthcare, education, and financial services.
Fundraising and Key Investments Across Africa
In 2021, Ventures Platform announced the first close of its $40 million Fund I, aimed at supporting startups in fintech, logistics, healthtech, and cleantech.
This initial close attracted investments from prominent figures and organizations, including Paystack CEO Shola Akinlade, the Nigeria Sovereign Investment Authority (NSIA), and UAC Nigeria. The fund also drew global investors like Y Combinator CEO Michael Seibel and Adam Draper. By 2022, Ventures Platform successfully closed the fund at $46 million.
Disbursement and Sectoral Investment Breakdown
Ventures Platform has so far disbursed $19.6 million from its $46 million fund, primarily to pre-seed (51.49%) and seed-stage startups (40.84%), with a smaller portion (7.64%) allocated to pre-Series A companies. The firm’s investments have been spread across various sectors, with fintech leading the way at $6.8 million. SaaS startups received $2.8 million, B2B startups $2 million, and healthtech $2.4 million.
Additionally, the firm invested $7.9 million in other sectors, including logistics, autotech, insurtech, and cleantech.
Focus on Fintech, Intra-African Opportunities and Pan-African Vision
Ventures Platform has a strong focus on fintech, which it sees as a sector with abundant opportunities. "We see opportunities in Intra-African remittance," said Kola Aina, founding partner at Ventures Platform, highlighting the firm’s interest in expanding its fintech investments across the continent.
Despite its roots in Nigeria, Ventures Platform has expanded its investment footprint across Africa. By July 2024, the firm had invested in 12 non-Nigerian startups, including Notto in South Africa, Union54 in Zambia, and Karcel in Egypt. Managing Partner Dotun Olowoporoku emphasized the firm's pan-African investment strategy, stating, "Even though we started from Nigeria and most of our investments are based in Nigeria, we always set out to be a pan-African investor."
Navigating Investment Challenges and Future Outlook
Ventures Platform has not been immune to the challenges of investing in African startups. A key issue has been the mismatch between the fund’s lifespan and the long-term needs of promising startups. To address this, the firm provides follow-on funding to ensure continued support for its portfolio companies. Despite a downturn in Africa’s startup funding landscape, Aina remains optimistic, stating, "We believe this is the best time to invest; there is less noise. We are now focused fundamentally on solid unit economics."
Ventures Platform’s approach to investment, driven by data and a commitment to long-term growth, positions it as a resilient and forward-thinking player in Africa’s venture capital scene.
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