Venture Platform Secures $64 Million to Fund Start Up Boom in Africa

Ventures Platform, one of the most dynamic early-stage venture funds in Africa based in Lagos, has raised a homonymous amount of $64 million as the first close of its second fund, which targets a $75 million final close. 

It is an important step in capital injection especially since this is the first venture-capital investment ever made by the Nigerian government via its Investment in Digital and Creative Enterprises (iDICE) programme. 

The product proves that there is an ever-increasing trust in the rising technology ecosystem in Africa even though the continent still accounts for only a handful of startup unicorns.  

Placing the Lesson on a Firm Base

After the founding of Ventures platform in the year 2016, this startup has developed a reputation of recognizing the potential of start-ups at an early phase. 

Founded in 2016 by Kola Aina, Ventures Platform has quickly established itself as a leading early-stage venture capital firm in Africa. The firm closed its first fund (Fund I) at $40 million in December 2021, later increasing it to $46 million in 2022 through, additional institutional backing, including from the IFC, British International Investment (BII), Proparco, and AfricaGrow.

This business model allowed Ventures Platform to assist over 90 companies in Africa, and especially focus on painkillers startups in fintech, healthtech, agritech, edtech, and artificial intelligence. 

Expanding Horizons and More Investments

The second investment of the firm will allow expanding its operations beyond nursery finances to include Series A investments, with the aim of higher dollar amounts and increased confidence in investments. 

The change has been opportune considering how African startups have experienced a lack of funds in recent years primarily because of decreased involvement of Silicon Valley venture firms.

Ventures Platform is also expanding its geographical coverage to the Francophone West Africa and North Africa, which it has already embarked on strategic investments.  

Durable Investor Confidence

The limited partners that come up in the fund have a wide range of backgrounds which include international financial institutions such as the International Financial Corporation (IFC), British International Investment (BII), and other African development banks. 

Further, there are European family offices and old Silicon Valley players, like former Y Combinator CEO Michael Seibel. 

Notably, 70% of the invested individuals in the 1st fund have experienced returns, which is an indication that it has trust in the ability of Ventures Platform to provide sound performance. 

The company has record breaking performance metrics for its first fund vintage year that includes a Total Value to Paid in (TVPI) and Internal Rate of Return (IRR), which are of the highest rates in the industry.  

Looking Ahead  

The fast-growing population of Africa that is predicted to comprise one out of four people by 2050 and the growth rates with respect to the economy which is observed to increase more than twice the rates in the United States presents a great opportunity in venture capital. 

The history of success of Ventures Platform highlights why Africa is a good place to find high-impact and asymmetric returns on patient global investors. 

With the expansion of digital markets and increased flow of capital, Ventures Platform is poised to become extremely instrumental in unlocking the tremendous startup potential in Africa.