Key Takeaways
- Ventures Platform closed its second institutional fund at $84 million, surpassing its $75 million target.
- New and existing investors include the European Bank for Reconstruction and Development and the Nigeria Investment in Digital and Creative Enterprises programme.
- The fund aims to support African entrepreneurs addressing economic challenges primarily through technology-driven solutions.
Fund Closure Announcement
Ventures Platform, an African seed-stage venture capital firm, has successfully closed its second institutional fund, the Ventures Platform Pan-African Fund II, with a total of $84 million. This figure exceeds the initial target of $75 million and comes three years after the first fund’s launch.
The closing of the fund reflects a growing institutional confidence in Africa’s technology sector, particularly amid a cautious global venture capital environment. New investors, including the European Bank for Reconstruction and Development and Norway’s development finance institution, Norfund, have joined existing partners such as the International Finance Corporation and Standard Bank South Africa.
Kola Aina, Founding and Managing Partner at Ventures Platform, emphasized that the focus remains on supporting entrepreneurs rather than solely on the capital raised. “We’re seeing a new generation of founders building enduring companies with greater technical depth and stronger governance,” Aina stated. The firm aims to invest primarily in pre-seed to Series A stages, with the capacity to provide additional funding for high-performing startups.
The fund will target businesses that tackle major economic and social challenges in Africa, concentrating on technology-driven solutions in key sectors. Dirk Werner, Managing Director of Equity at EBRD, noted that successful innovation is vital for Africa’s economic future, highlighting the need for increased venture capital relative to entrepreneurial activity on the continent.
Ventures Platform’s first fund, launched in 2021, achieved its first close with $40 million, attracting participation from notable figures such as Paystack CEO Shola Akinlade. The firm also raised a further $46 million for its early-stage and intercontinental fund in December 2022, exceeding an initial goal of $40 million. The success of these fundraising efforts places Ventures Platform in a strong position to assist African startups in overcoming challenges presented by tightened funding conditions.
With 56 deals involving African startups this year, Ventures Platform remains a key player in the venture capital landscape, poised to enhance support for technology-driven businesses from early stages to growth. The expanded institutional backing ensures the firm will continue to invest in promising entrepreneurs, fostering the development of sustainable solutions across the continent.
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