After accepting its first Limited Partner (LP) investment in 2018, Lateral Capital has exceeded its initial closing target of $20 million.

The US-based fund aims to accelerate and invest in early and growth-stage ventures in emerging and frontier markets. 

Its venture fund gained interest from institutional investors and family offices from the US, Europe, Middle East and Africa. The fund is now on track to achieve its final close target of $50 million.

Lateral focuses its support on startups offering technology solutions in financial services, energy, healthcare, and education.

Its portfolio companies include two Nigerian companies MedSaf and AppZone (also a portfolio company of Greenhouse Capital), as well as 4G Capital and Lipa Later (both in East Africa).

One of Lateral’s LPs is Investmon, a family-owned investment company. Investmon “backed Lateral Capital as its partner for African venture investing on the strength of its African and US team and cornerstone portfolio,” according to Albert M. Amon, Investmon’s Executive Director. 

“We believe in their innovative model of company building and are confident that their approach to technology venture capital in Africa is the right way forward,” Amon said. 

Lateral’s Africa offices in Lagos, Nairobi and Johannesburg connect its portfolio companies on the continent to networks and capital in more developed startup markets. Steven Grin, the firm’s managing partner, says they will continue “creating valuable companies with talented founders who deploy technology to build for the needs of the world’s fastest growing region.” 

The fund will invest with ticket sizes from $250,000 and up to $5m in early and growth-stage companies across the capital structure. 

After backing Lipa Later, a payments/fintech startup, in the fourth quarter of 2019, the fund has made three new and two follow on investments this year. It has set a target to add up to six new portfolio companies in 2020.   

Venture capital is playing an increasingly prominent role in building Africa’s next generation of tech-enabled startups. From Microtraction to the Future Africa fund, early stage founders are having more options of willing funds promising smart capital and access to customer networks.

Read this next

Billion-dollar companies are not built by rich founders with shiny pitch decks. Bullish big-ticket announcements do not guarantee great leaps. And while capital remains a primary need globally, a stable startup in Africa must tame aggressive human and structural challenges. There is no flawless template for success. But with his work at Andela and Flutterwave, […]

More From TC
The Next Wave
30th November 2020

How Paystack’s maturity relied on a community of hard and smart workers NOVEMBER 29, 2020 This newsletter is a weekly in-depth analysis of tech and innovation in Africa that will serve as a post-pandemic guide. Subscribe here to get it directly in your inbox every Sunday at 3 pm WAT Hello, I am excited by […]

LifeBank isn’t a cool startup and unlike other startups, it doesn’t care about announcing funding rounds. But yet this Nigerian health-tech startup has had tremendous impact on society. It’s present in 8 Nigerian states and Kenya, and has saved over 10,000 lives.   In the third episode of the UK-Nigeria Tech Hub‘s Building From Ground Up […]

EndSARA, October 20

In a video that surfaces after the incident, military officers arrive at the Lekki Toll Gate on the Lagos island, stand for a moment in front of a group of protesters separated by a line of road barricades sitting and singing the national anthem in the darkness that envelopes an ordinarily lit location, and begin […]

TechCabal is a Big Cabal Media brand

Copyright © 2013 - 2020
All rights reserved

Privacy & Terms