The $71 million investment by TLcom Capital TIDE Africa Fund
The latest venture from TLcom Capital has been closed at an estimated $71 million. The predecessor fund closed in January last year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The fund's first investment was in more than a dozen tech companies from Kenya, Nigeria, and South Africa. TIDE Africa II will concentrate on fintech companies in East Africa. The investment firm has offices in Kenya and Nigeria. The portfolio of TLcom comprises Twiga Foods, Andela, uLesson and Kobo360. Each company is worth between $500,000 and $10 million.
TLcom is a Nairobi-based VC firm with more than $200 million under management. Omobola Johnson is one of the firm's Managing Partners. He has assisted in the establish more than a dozen technology companies on the continent, such as Twiga Foods, and a trucking logistics business. The investment firm's team includes Omobola Johnson, who was the former Nigerian minister of technology and communication.
TIDE Africa is an equity fund that invests in growing-stage tech companies in SSA. It will invest between $500,000 and $10 million in companies that are at the beginning of their development with a particular focus on Series A and B rounds. The fund will be primarily focused on Anglophone Africa but it plans to invest in Eastern, and Southern African countries. In Kenya for instance, investors looking for projects to fund in namibia TIDE has invested in five high-growth digital companies.
Omidyar Network's $71 million TEEP Fund
The Omidyar Network, a US-based charitable investment firm, is aiming to invest between $100-$200 million in India over five years. Pierre Omidyar, co-founder of eBay, founded the fund and has invested $113 Million in 35 Indian companies. The firm invests in the Indian business and consumer internet, as well as financial inclusion. It also has investments in property rights, transparency in government as well as government transparency companies with social impact.
The Omidyar Network's TEEP Fund invests in projects that enhance access to government information. Its goal is to identify nonprofits using technology to develop public information portals and tools for citizens. The network believes open access to government information increases the knowledge of citizens about government processes, and can lead to an engaged society that holds government officials accountable. Imaginable Futures will invest the money in for-profit and nonprofit organizations focusing on education and Investors Looking For Projects To Fund - 5Mfunding.Com health.
Raise
If you're planning to raise money for your African start-up, you need to look for a company with an emphasis on Africa. One of these companies is TLcom Capital, a fund management firm with its headquarters in London. Its African investments have attracted the attention of angel Investors Looking For Projects To Fund - 5Mfunding.Com, and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund that intends to invest in 12 startups before they reach revenue.
The appeal of Africa venture capital is increasingly being acknowledged by the capital market. Private investors are increasingly realizing the potential of Africa's development and don't have to be restricted by institutional investors. This means that raising funds is never easier. Raise allows businesses to close deals in a fraction of the time and is devoid of institutional constraints. However, there isn't a single right method to raise funds for African investors.
Understanding how investors view African investments is the first step. While YC hype appeals to a lot of investors however, it is important to consider more than the Silicon Valley giant and Agenda 2063 of the African Union. Therefore, African entrepreneurs are seeking the YC signal before approaching US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke about the importance of the YC signal when seeking funds for African investors.
GetEquity
GetEquity, an investment platform that is based in Nigeria was established in July 2021. It aims to bring about democratization of the funding of startups in Africa. It hopes to make funding African startups easy for the average person and provide the best capital raising tools available to any startup. The platform has already helped startups raise more than $150,000 from a wide range of investors. Additionally, it provides a secondary market that allows investors to purchase other people's tokens.
Unlike equity crowdfunding, investing in early-stage companies is a very exclusive business that is typically available to the top individual capital institutions and angel investors as well as syndicates. It's not typically accessible to family members and friends. However, new companies are attempting to change this privilege by increasing access to startup funds in Africa. It is available for both Android and iOS devices. It is free to use.
With the launch of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa possible for everyday investors. With the help of crypto funds, investors can invest in African startups for as little as $10. Although this may seem a small amount in comparison to traditional equity funding however, it's an enormous amount of cash. With the recent exit from Paystack by Spark Capital GetEquity has become an excellent platform for investors from Africa looking to invest in Africa.
Bamboo
Bamboo's first hurdle is convincing young Africans to invest in the platform. Investors in Africa had limited options before the present such as crowdfunding, foreign direct investment (FDI) and old finance companies. In fact, less than a third of the population had invested in any platform. The company now says it is expanding into other African countries, and plans to launch in Ghana by the end of April 2021. More than 100,000 Ghanaians are on the waitlist at the time of writing.
Africans have few options for saving money. With the rate of inflation reaching 16 percent and the currency depreciating against the dollar. In investing in dollars, you can hedge against rising inflation and a falling currency. One platform that allows Africans to invest in U.S. stocks is Bamboo which has seen rapid growth over the past two years. Bamboo will launch in Ghana in April 2021. It has already surpassed 50,000 users who are waiting to access.
Once registered, investors are able to cash in their wallets using as little as $20. Funding can be made through credit cards, bank transfers and payment cards. Afterwards, they can exchange ETFs and stocks, and receive regular market updates. Bamboo's platform has a bank-level security so anyone from Africa is able to use it if they have an authentic Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.
Chaka
There are many reasons why Nigeria is a thriving hub for legitimate business and investment. Its film and entertainment industry is among the top in the world, and the country's growing fintech ecosystem has resulted in an increase in startup formation and VC activity. TechCrunch interviewed Iyinoluwa Abodeji who is one of Chaka's most prominent investors. She stated that the country's progressive tendencies will eventually open the doors to a new class investors. Chaka also received seed-funds from Microtraction which is managed by Michael Seibel, CEO of Y Combinator.
The degrading relationship between the US and China has accelerated Beijing's interest in African investments. The growing anti-China sentiment and trade war has made it more attractive for investors to invest in African companies that are not part of the US. While Africa has a number of developing economies, the majority of markets aren't big enough for venture-sized firms. African entrepreneurs should be prepared to adopt an expansion-minded mindset and craft a coherent expansion story.
The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure platform to invest in African stocks. Chaka is free to join and you'll receive the 0.5 percent commission for each trade. Withdrawals of available cash can take up to 12 hours. On the other hand, withdrawals for sold shares can take up to three working days. Both are handled locally.
Rise
Africa is experiencing positive news due to the rise in investors looking to invest. The economy of the country is stable, and its governance is sound, which is a major draw for foreign investors. This has led to an increase in living standards in Africa. However, Africa is still a dangerous investment destination, so investors must exercise caution and due diligence. There are many opportunities to invest in Africa. However the continent needs to make improvements to attract foreign capital. In the next few years, African governments should work to create more business-friendly environments and enhance the business environment.
The United States is more willing to invest in the economies of Africa via foreign direct investments. In 2013, U.S. governments helped in the development of a major healthcare financing facility in Senegal. The U.S. government also helped secure investment in new technologies in Africa and also assisted pharmacies in Kenya and Nigeria supply high-quality medications. This type of investment could create jobs and foster a long-term partnership between the U.S. and Africa.
While there are plenty of opportunities in the African market for stocks, it is vital to understand the market and perform due diligence to ensure you do not lose money. If you're a small investor, it's a great option to invest in an exchange-traded fund (ETFs) which track an array of Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are an easy method of trading African stocks on the U.S. stock market.
