| Global consulting firm, McKinsey, says the total value of co-investment deals has grown to US$104 billion since 2012. Typical venture funds secure commitments from external investors (LPs), find portfolio companies to invest in and hire investment bankers to manage the fund. Co-investment deals operate somewhat differently. External investors co-invest in portfolio companies in a pattern similar to a crowd fundraise. This funding method is however, not very common in Africa.
Future Africa Fund, an investment arm of Future Africa founded by Iyin Aboyeji, Chuba Ezekwesili, Olabinjo Adeniran and Adenike Sheriff in 2019 is testing the co-investment model under the Future Africa Collective, a scheme which will allow qualified investors sign up and co-invest on a deal-by-deal basis through investment syndicates.
Abubakar Idris spoke to co-founder Iyin Aboyeji, and in this piece, further explains the vision behind the fund, its modalities and the first deal the collective has embarked on since its creation. More importantly, he answers the question, are we going to see more of this funding model in Africa’s investment landscape? |
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| Venture firm Enygma Ventures has launched a ZAR20 million (US$1 million) fund to support African startups, entrepreneurs and innovators that are building solutions for the post-pandemic world. The firm is partnering with Startup Circles, an online platform that helps entrepreneurs move from ideation to being investor-ready, to provide seed funding and scholarships to startups that are creating innovative solutions to address problems that may remain in a post COVID-19 world. |
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The International Finance Corporation (IFC), a member of the World Bank Group, is investing up to US$20 million into a newly-independent, institutionalised private equity (PE) fund manager that will back Egyptian, Moroccan and Tunisian companies. The fund’s goal is to help small and mid-cap companies in the North African region improve their access to institutional capital and boost growth.
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The UK-Nigeria Tech Hub is conducting a survey to better understand how COVID-19 has impacted you and the early stage start-up community in Nigeria.
Could you kindly take 6 minutes of your time to fill this anonymous survey here?
The UK-Nigeria Tech Hub is an initiative by the UK Government to support the growth of the tech ecosystem in Nigeria. |
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| Ride hailing company, Bolt, has piloted a food delivery service in Cape Town, South Africa. In the wake of the lockdown following the spread of the coronavirus, the company halted its ride hailing services and launched a Business Delivery service to provide logistics for essential businesses whose operations are still ongoing. After Cape Town, the company will take the food delivery service to other areas in the country to allow users (order for and) receive groceries, pet food, health supplements and off-the-shelf medications among others. |
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| As Coronavirus cases continue to grow in Africa, Zikoko, our Sister publication under Big Cabal Media, has put together a microsite — coronafacts.africa — that provides accurate information and free downloadable resources for the general public to help understand and keep up with the Coronavirus pandemic. Visit https://www.coronafacts.africa/ to check it out. |
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| Founded by Olajumoke Akinwunmi and Tokunboh Ishmael, Alitheia Capital is a West African investment partner for Goodwell Investments, a Netherlands-based early-stage investment firm in financial services and tech companies in India and Africa. Through Goodwell’s funds, Alitheia has invested in Paga, MAX.ng and Lidya. It has no less than seven companies in its portfolio, mostly financial services providers; fintech & microfinance.
Its new fund, Alitheia IDF, targeted at women founders and women-focused products recently reached a second close at $75 million. Alitheia IDF is a joint venture fund established in 2014 between Alitheia Capital and South Africa’s IDF Capital.
Are you an investor or founder interested in getting access to free and premium TC Insights reports and analysis? Please fill in this form to let us know your interests. |
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| Music concerts, speed dating, seminars and two-person panel-type conversations, Instagram has seen immense uptake and usefulness of its Live feature as people find ways to keep themselves engaged and busy during the lockdown. Last month consumption grew by 70%. Ordinarily, after a Live session, the media disappears or can be added to Insta Stories where they stay for 24 hours before disappearing from your timeline. Instagram is now looking to add a more permanent feature that allows you save your Live sessions to the IGTV platform. |
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| Join AfriLabs for a virtual conference on “A Candid Conversation: How can Hubs Surmount the #COVID19 Pandemic?” holding on April 22, 2020. Find out more. |
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That’s all for today,
Have a good week!
– Kay
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