TLcom Capital's $71 Million TIDE Africa Fund
TLcom Capital's latest venture has closed at a reported $71 million. The predecessor Business investors in south Africa fund closed in January of last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in tech companies in Kenya and Nigeria. TIDE Africa II will focus on East African fintech companies. The investment firm also has offices in Nigeria and Kenya. TLcom's portfolio comprises Twiga Foods and Andela as well as uLesson and Kobo360. Each company is worth $500,000 and $10 million.
TLcom is a Nairobi-based VC firm with more than $200 million in under management. The company's managing partner, Omobola Johnson, has helped launch over dozen tech companies across the continent which include Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of communication technology in Nigeria) is part of the investment firm's team.
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 in the early stages with a particular focus on Series A and B rounds. The fund will be focused on Anglophone Africa but it plans to invest in Eastern, and Southern African countries. TIDE for instance has invested in five high growth digital companies in Kenya.
Omidyar Network's $71M TEEP Fund
The Omidyar Network, a US-based investment firm that invests in philanthropy, has set out to invest between $100 and $200 million in India over the course of five years. The fund was established by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since 2010. In India, the firm invests in consumer internet, entrepreneurship, financial inclusion, transparency in government 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. Its objective is to identify nonprofits using technology to create public information portals and tools for citizens. The network believes that open access to government information enhances the public's awareness of government processes, and in turn results in a more active society that holds government officials accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit companies that focus on education and healthcare.
Raise
You should pick a business that is based in Africa if you want to raise funds for your African startup. TLcom Capital, a fund manager located in London is one of these companies. Its African investments have caught the attention of angel investors, and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund aiming to invest in 12 startups before they reach revenue.
The capital market is becoming increasingly aware of the benefits of Africa venture capital. More private investors are realizing the potential of Africa for growth and don't face the constraints of institutional investors. This means that raising money is never easier. Raise allows businesses to close deals in half the time and is completely free of institutional restrictions. There is no one way to raise funds for African investors.
Understanding how to get investors investors perceive African investments is the first step. While YC hype is appealing to many investors but it's crucial to look beyond the Silicon Valley giant and Agenda 2063 of the African Union. African startups are now looking for the YC signal to make contact with US investors. Kyane Kassiri, an Tunisian venture capitalist, recently spoke about the importance of the YC signal when it comes to raising funds for African investors.
GetEquity
GetEquity, an investment platform that is based in Nigeria was founded in July of 2021. It aims to bring about democratization of the funding of startups in Africa. It is aiming to make funding African startups accessible to all by offering capital raising tools and world-class capital to all startups. 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 purchase tokens from other investors.
Like equity crowdfunding investing in early-stage businesses is a very exclusive business investors in south africa that is usually only available to elite individual angel investors and capital institutions, as well as syndicates. It is not accessible to family members and friends. However, new companies are making an effort to disrupt this privileged arrangement by democratizing access to startup funding in Africa. The platform is available on iOS and Android devices and is completely free to use.
With the introduction of its cryptocurrency-based wallet, GetEquity is making startup investing in Africa an option for common investors. With the aid of crypto funds investors can invest in African startups starting at just $10. While this may seem a small amount relative to equity funding traditionally however, it's an enormous amount of cash. With the recent departure of Paystack by Spark Capital, GetEquity has grown into a powerful ecosystem for investors willing to invest in Africa.
Bamboo
Bamboo's first obstacle is convincing young Africans to invest on the platform. Investors in Africa had only a few options prior to the present: crowdfunding and foreign direct investment (FDI) and traditional finance companies. In fact, less than three-quarters of the population has invested in any platform. But now the company is expanding into other regions of Africa, with plans to launch in Ghana in April 2021. More than 50,000 Ghanaians are on the waitlist as of this writing.
Africans have few alternatives for saving money. The value of the currency is decreasing against the dollar due to inflation of nearly 16%. Investing in dollars helps to hedge against the effects of inflation and a declining currency. Bamboo is a platform that has seen rapid growth in the past two years, is one platform that allows Africans invest in U.S. stock options. Bamboo plans to launch in Ghana in April 2021, and angel investors south africa has more than 50,000 people waiting to be able to access.
Once registered, investors can fund their accounts with as little as $20. Funding can be made through credit cards, bank transfers and payment cards. After that, they can trade ETFs and business investors in South Africa stocks, and receive regular market updates. Bamboo's platform is secured at the bank level which means that anyone in Africa can use it if they have a valid Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.
Chaka
There are several reasons to consider why Nigeria is a thriving hub for legitimate Business Investors In South Africa and investment. Nigeria's film and entertainment industry is one of the largest in Africa. The country's expanding fintech sector has resulted in an increase in startup formations and VC activity. One of the most prominent backers of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's modern trends will ultimately open doors how to get investors a brand new group of 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 relationship between China and the US has accelerated Beijing's interest in African investments. The trade war, as well as the rising anti-China sentiment have made it more appealing for investors to look beyond the US to invest in African companies. While Africa is home to a variety of emerging economies, most markets aren't big enough for venture-sized firms. The business owners of Africa should be prepared to adopt an expansion mindset and to lock in a consistent expansion story.
The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure place to invest in African stocks. Chaka is free to join and you'll be paid a 0.5 percent commission for each trade. Withdrawals of available cash can take up to 12 hours. The withdrawal of shares that have been sold, on the other hand can take as long as three days. In both cases the cash payment for sold shares is settled locally.
Rise
Africa is enjoying positive developments from the increased number of investors who are willing to invest. The economy of the country is stable, and its governance is solid, which attracts foreign investors. This has led to a rise in living standards in Africa. However, Africa is still a dangerous investment destination and investors must exercise caution and due diligence. There are numerous opportunities to invest in Africa. However, the continent must improve its infrastructure to attract foreign capital. In the next few years, African governments should work to create more conducive environments for business and enhance the business climate.
The United States is more willing to invest in the economies of Africa via foreign direct investment. In 2013, U.S. governments helped advance a major healthcare financing facility in Senegal. The U.S. government also supported investment in new technology in Africa and also helped pharmacies in Nigeria and Kenya provide high-quality medication. This investment can help create jobs and foster long-term partnerships between the U.S.A and Africa.
There are numerous opportunities available on the African stock exchange. However, it is essential to know the market and perform your due diligence to avoid losing money. If you are a small investor, it's a smart option to invest in an exchange-traded fund (ETFs), which tracks a wide range of Sub-Saharan African businesses. American depositary receipts (ADRs) that are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.
