There are many reasons to invest, but investors need to be aware that Africa can test their patience. The African markets can be volatile and time horizons may not always be effective. Even the most sophisticated businesses might have to review their business plans, as Nestle did last year in 21 African countries. Many countries also have deficits. These gaps will need to be filled by resourceful and investors Looking for entrepreneurs bold investors who can bring more prosperity to Africa.
The $71 million of TLcom Capital’s TIDE Africa Fund
The latest venture from TLcom Capital has closed at a reported $71 million. The predecessor fund was closed in January last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in 12 tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will be focusing on East African fintech companies. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom comprises Twiga Foods and Andela as well as uLesson and Kobo360. The investment firm invests between $500,000 and $10 million for each company.
TLcom is a Nairobi-based VC firm with more than $200 million under management. The company’s managing partner, Omobola Johnson, has helped establish more than dozen tech-related companies across the continent which include Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of technology and communication in Nigeria) is part of the investment firm’s team.
TIDE Africa is an equity investment fund which 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 B rounds. While the fund will concentrate 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 company that invests in philanthropy, hopes to invest between $100-$200 million in India over the course of five years. The fund was created by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian businesses since 2010. In India, the firm invests in consumer internet, entrepreneurship financial inclusion, government transparency property rights, and businesses that have social impact.
The Omidyar Network’s TEEP Fund makes investments that are designed to improve access and accessibility to government information. It’s goal is to find non-profits using technology to develop public information portals and tools that are accessible to citizens. The network believes open access to government information enhances the public’s knowledge of government processes, and can lead to a more engaged society that makes government officials accountable. Imaginable Futures will use the funds to invest in non-profit and for-profit organizations that are focused on education and healthcare.
Raise
You should select a company that is focused on Africa if want to raise funds for your African startup. TLcom Capital, a fund manager based in London is one such company. Its African investments have attracted the attention of angel investors, and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund, which aims to invest in 12 startups before they achieve revenue.
The attraction of Africa venture capital is being recognized by the capital markets. Private investors looking for Entrepreneurs (Www.5mfunding.com) are increasingly seeing the potential for growth in Africa and don’t need to be limited by institutional investors. This means that raising funds has never been simpler. Raise helps businesses to close deals in half the time, and is free of institutional restrictions. There’s no single best way to raise funds for African investors.
The first step is to know the way investors view African investments. While many investors are drawn to YC hype, it’s crucial to be aware of the broader implications of this Silicon Valley giant and the African Union’s agenda 2063. African companies are now searching for the YC signal to engage with US investors. Kyane Kassiri, a Tunisian venture capitalist, has recently spoke about the importance of the YC signal when it comes to raising money for African investors.
GetEquity
Founded in July 2021, GetEquity is an investment platform based in Nigeria that aims at democratizing startup funding in Africa. Its goal is to make funding for African startups more accessible to everyone by providing capital-raising tools and world-class capital for all startups. It has already helped numerous startups to raise more than $150,000 from diverse investors. Additionally, it provides a secondary market that allows investors to purchase other investors’ tokens.
Unlike equity crowdfunding investing in early-stage companies is an extremely exclusive business. It is generally only available to the most renowned individual angel investors, capital institutions, and syndicates. It is not accessible to family members and friends. New companies are trying to change this unwelcome arrangement by making it easier to access capital for startups in Africa. It is available for Android and iOS devices. It is free to use.
The GetEquity blockchain-based wallet is now available for investors. This allows investors to invest in startups from Africa. With the help of crypto-based funds, investors can invest in African startups starting at just $10. While this may seem tiny relative to equity funding traditionally but it’s still a significant amount of money. And with the recent exit of Paystack by Spark Capital, GetEquity has grown into a powerful ecosystem for investors who want to invest in Africa.
Bamboo
Bamboo’s first hurdle is convincing young Africans to invest on the platform. Up until now, investors in Africa were restricted to a few options that included foreign direct investment (FDI) and crowdfunding and old finance companies. In fact, less than one-third of the population has invested in any platform. The company now says it is expanding into other African countries, with plans to launch in Ghana by the end of April 2021. More than 50,000 Ghanaians are on the waiting list at the time of writing.
Africans do not have many options to save money. The value of the currency is declining against the dollar due to inflation of nearly 16%. The investment of dollars can help you safeguard against inflation as well as a falling dollar. One platform that allows Africans to invest in U.S. stocks is Bamboo which has seen rapid growth in the past two years. Bamboo will launch in Ghana in April 2021. It already has over 50,000 users who are eager to gain access.
Once they have registered, investors can cash in their wallets using just $20. You can fund your wallet with credit cards, bank transfers or payment cards. Afterwards, they are able to trade ETFs and stocks, and receive regular market updates. Bamboo’s platform is bank-level secure which means that anyone in Africa can use it provided they have a valid Nigerian Bank Verification number. Bamboo’s services can also be used by professional investment advisers.
Chaka
Nigeria is a hub for legitimate business and investment. The film and entertainment industry in Nigeria is one of the largest in Africa. The country’s expanding fintech sector has resulted in a boom in startup formations and VC activity. TechCrunch spoke to Iyinoluwa Abodeji, one of Chaka’s most prominent investors. She stated that the progress of the country will eventually lead to new investors. In addition to the Aboyeji investment, Chaka has also secured seed-funds from the Microtraction fund that is run by Y Combinator CEO Michael Seibel.
The deteriorating US-China relationship has increased Beijing’s interest in African investments. The trade war, as well as rising anti-China sentiment, have made it more appealing for investors to look beyond the US to invest in African companies. Although Africa has many developing economies, most markets are too small for venture-sized firms. The owners of businesses in Africa must be ready to take on an expansionist mindset and lock in a coherent expansion narrative.
The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, investors Looking for Entrepreneurs which makes it a safe and secure location to invest in African stocks. Chaka is free to join, and you’ll be paid the 0.5% commission for every trade. Withdrawals of cash on hand can take up to 12 hours. On the other hand, withdrawals for sold shares can take up to three days. In both instances, the cash for sold shares is settled locally.
Rise
Africa is enjoying positive developments from the increase in investors who are willing to invest. Its economy is stable and its governance is sound, which is why it is a popular destination for international investors. This has led to a rise in living standards in Africa. Africa is still a risky investment destination. Investors should exercise caution and do their due diligence. There are plenty of opportunities to invest in Africa. However, the continent must make improvements to attract foreign capital. African governments must collaborate to create a more hospitable environment for business and improve the business environment in the coming years.
The United States is increasingly willing to support African economies with foreign direct investment. U.S. governments assisted Senegal in advancing a major health financing facility. The U.S. government also helped to secure investments in new technologies in Africa, and helped pharmacies in Kenya and Nigeria provide high-quality medication. These investments can create jobs and help build an ongoing partnership between the U.S. and Africa.
There are numerous opportunities available on the African stock exchange. However, it is important to know the market and investors willing to invest in africa do your due diligence to avoid losing money. If you’re a smaller investor it is a good idea to invest in exchange-traded fund (ETFs), which tracks the performance of a variety of Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are an easy method to trade African stocks in the U.S. stock market.