TLcom Capital's $71 million TIDE Africa Fund
The latest venture by TLcom Capital been closed at an estimated $71 million. The funds' predecessor closed in January of this year. TLcom, Bio, CDC Group, and Sango Capital contributed five million dollars. The fund's first investment was in a dozen tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will focus 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. The investment firm earns between $5000 and $10 million in each company.
TLcom is a Nairobi-based VC firm with more than $200 million in under management. Omobola Johnson is the company's Managing Partner. He has helped to start more than a dozen tech businesses on the continent, such as Twiga Foods, and a logistics company for trucking. Omobola Johnson (a former minister of technology for communication in Nigeria) is part of the investment firm's team.
TIDE Africa is an equity investment fund that invests in growth-stage tech companies in SSA. It will invest between $500,000 and $10 million in early-stage companies with a particular focus on Series A and II rounds. While the fund is focusing on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. TIDE, for instance, has invested in five high growth digital companies in Kenya.
Omidyar Network's $71 million TEEP Fund
The Omidyar Network, a US-based investment firm that invests in philanthropy, has set out to invest between $100-$200 million in India over the next five years. Pierre Omidyar, co-founder of eBay established the fund and has invested $113 million in 35 Indian companies. In India, the firm invests in consumer internet, entrepreneurship financial inclusion, transparency in government property rights, and firms with social impact.
The Omidyar Network's TEEP Fund makes investments that are designed to increase access to government information. It is a way to identify non-profits that use technology to create public information portals and tools for citizens. The network believes that open access to government information enhances public awareness of government procedures, which will result in a more engaged society that holds officials accountable. Imaginable Futures will use the funds to invest in non-profit and for-profit companies that focus on education and healthcare.
Raise
You should select a company that is focused on Africa if are looking to raise capital for your African startup. TLcom Capital, a fund manager with its headquarters in London is one such company. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund that intends to invest in 12 startups prior to them reaching revenue.
The capital market is becoming increasingly aware of the potential of Africa venture capital. More Private Investor Looking For Projects To Fund investors are realizing the potential of Africa to grow, and don't have the same restrictions as institutional investors. This means that raising funds is much simpler than it was in the past. Raise enables businesses to close deals in half of the time and is free from institutional constraints. There is no standard way to raise funds for African investors.
Understanding how investors view African investments is the first step. Although many investors are attracted to YC hype, it's vital to look beyond this Silicon Valley giant and the Agenda 2063 of the African Union. As a result, African entrepreneurs are seeking the YC signal before they approach US investors. A Tunisian venture capitalist Kyane Kassiri recently talked about the importance of the YC sign when raising funds for African investors.
GetEquity
GetEquity, an investment platform in Nigeria, was founded in July of 2021. It aims to bring about democratization of the funding of startups in Africa. It aims to make financing African startups accessible to the common man, bringing in top capital raising tools for any startup. It has already helped numerous startups raise more than $150,000 from investors from all over the world. It also provides secondary markets for investors to buy tokens from other investors.
Contrary to equity crowdfunding, investing in companies in the early stages can be very exclusive. It is typically only available to the most renowned individual angel investors, capital institutions and syndicates. It is not generally accessible to family members or friends. New startups are trying to change this traditional arrangement by making it easier to get funds for startups from Africa. The platform is available on iOS and Android devices and is completely free to use.
With the introduction of its blockchain-based wallet, GetEquity is making startup investing in Africa possible for everyday investors. With the assistance of crypto funds, business investors in south africa investors can invest in African startups starting at just $10. While this may seem an insignificant amount when relative to equity funding traditionally but it's still an impressive amount of money. In the wake of the recent demise of Paystack by Spark Capital, GetEquity has developed into a thriving ecosystem for investors willing to invest in Africa.
Bamboo
Bamboo's first hurdle is convincing young Africans to invest in the platform. Until now investors in Africa were restricted to a few options that included foreign direct investment (FDI), crowdfunding, and legacy finance companies. In fact, only about a third of the population had invested on any platform. But now, the company says it's expanding into other parts of Africa and plans to launch in Ghana in April 2021. More than 50.000 Ghanaians are on the waitlist as of this writing.
Africans do not have many options for saving money. With inflation running at nearly 16 percent the currency is declining against the dollar. It is beneficial to invest in dollars to protect against inflation and a falling currency. One platform that allows Africans to invest in U.S. stocks is Bamboo, which has experienced rapid growth in the last two years. Bamboo will go live in Ghana in April 2021. Bamboo has already attracted more than 50k users waiting to be granted access.
Once registered, investors are able to get their wallets funded with as little as $20. You can fund your wallet using credit cards, bank transfer, or payment cards. Then, they can trade ETFs and stocks and receive market updates. Bamboo's platform has a bank-level security, so anyone in Africa can use it if they have an active Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.
Chaka
Nigeria is a hub for legitimate investment and business. The entertainment and film industry is among the biggest in the continent and the country's expanding fintech ecosystem has resulted in an explosion in startup formation and VC activity. One of the most prominent backers of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's progressive changes will eventually open the doors to a new category of investors. In addition to Aboyeji's investment, Chaka has also secured seed-funds from the Microtraction fund, which is led by Y Combinator CEO Michael Seibel.
The deteriorating relationship between China and the US has increased Beijing's interest in African investments. Rising anti-China sentiments and the trade war has made it more attractive to investors to invest in African companies outside of the US. Although the continent of Africa has many developing economies, the majority of them aren't big enough for venture-sized businesses. The owners of businesses in Africa must be ready to adopt an expansion mindset and lock into a coherent expansion narrative.
The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a secure and safe platform to invest in African stocks. Chaka is free to join, and you'll be paid the 0.5% commission for every trade. Withdrawals of available cash can take up to 12 hours. In the case of withdrawals of shares sold on the other hand can take up to three days. Both cases are handled locally.
Rise
Africa is experiencing positive news due to the rise in investors looking to invest. Its economy is stable and its governance is sound, which is why it is a popular destination for international investors. This growth has raised the standard of living in Africa. Africa is still a risky investment location. Investors must be cautious and private investor looking for projects to Fund do their due diligence. There are plenty of opportunities to invest in Africa. However Africa needs to make improvements to attract foreign capital. African governments must work together to create a more hospitable environment for business and improve the business climate in the coming years.
The United States is more willing to invest in Africa's economies via foreign direct investments. U.S. governments assisted Senegal in the development of a major healthcare financing facility. The U.S. government also helped to secure investments in new technologies in Africa and assisted pharmacies in Kenya and Nigeria provide high-quality medication. Such investment can create jobs and create a long-term partnership between the U.S. and Africa.
There are many opportunities in the African stock exchange. However, it's crucial to be aware of the market and conduct your due diligence to avoid losing money. If you're a smaller investor, it's a great option to invest in an exchange-traded fund (ETFs), which tracks a wide range of Sub-Saharan African businesses. American depositary receipts (ADRs), which are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.
