|
Andela, Flutterwave co-founder plots a disruption of traditional VC
Iyin Aboyeji, a co-founder of Andela and Flutterwave thinks there is a better way to fund African innovation. Future Africa, his startup-focused investment firm, is calling on co-investors to join the search for the next big African companies of the future. What is remarkable about that?
First, we have learned that the minimum entry is $10,000 but you have to satisfy Future Africa’s screening criteria. We also know the Investment Committee will not be composed of “investment bankers and aid workers” who do not understand the nuances of investment in Africa. Instead, Aboyeji, his co-founders and other experienced hands will identify, judge and approve the good deals. Also, the capital you contribute as a co-investor is managed by an institutional platform. It is Future Africa’s way of ensuring the co-investment fund is managed by professionals with financial investment expertise.
To be sure, this is still a system where private individuals pool funds and invest in a company. So it is not a seismic diversion from what currently obtains in the realm of private investing. But here is the main difference: you, as a co-investor, are not an LP bound to invest in whatever your VC fund manager decides. Investment is on a “deal-by-deal basis”. And you will have a specific time window to opt-in for each deal.
Given the structure and ticket size, this vehicle is unlikely to replace traditional venture capital. But it might provide more early stage funding at a time when entrepreneurs need it most.
Sounds like it is already getting interesting; at least 200 people signed up on the first day of the fund’s announcement. We’ll have more on the website about how this works, so be sure to check frequently!
|
