“The way to build profitable ventures is to solve the biggest challenges. Our investment philosophy is that by identifying and solving challenges we can build global companies.” – Olabinjo Adeniran, Future Africa co-founder.
In January 2020, the Future Africa fund, co-founded by Iyin Aboyeji caught our attention. At the time, the fund was new to the VC space, having been registered a few months earlier.
Yet, the interesting thing about the fund is that, from the jump, its founders talked about how they were interested in more than exits. From where they are standing, while profits are important, social impact is equally important.
It helped shape Future Africa’s approach that money alone doesn’t build. Since the fund was announced in January, Q3 has been its busiest period so far.
Investments in Q3: Tambua Health, Releaf, Bamboo, EdenLife, Indicina, Myawayhome, Stears, Shara and Evolve Credit.
In all, it invested $1 million in these nine companies.
A new model? Future Africa doesn’t raise money from large institutions. They don’t have DFIs, banks, foreign fund of funds or family offices as limited partners.
The fund comprises 125 members, 60% of whom live in Nigeria. Each is invited to invest from as low a bar as $5,000. As a collective, they have written funding checks of up to $250k.
Bottom line: There’s a lot to unpack about Future Africa and Alex does it superbly in this article.