There are many reasons to invest, however investors should be aware that Africa is a place that tests their patience. The African markets are volatile and time horizons do not always work. Even the most sophisticated businesses might need to reevaluate their business plans as Nestle did last year in 21 African countries. Many countries also face deficits. It will take the courage and determination of investors to fill in these gaps and bring greater prosperity to Africans.
TLcom Capital’s $71 million TIDE Africa Fund
The latest venture of TLcom Capital has closed at a reported $71 million. The fund’s predecessor was shut in January of last year, and TLcom, Bio, CDC Group and Sango Capital contributed five million dollars. The fund’s first investment was in 12 tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will concentrate on East African fintech companies. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom includes Twiga Foods and Andela as well as uLesson and Kobo360. The investment firm earns between $500,000 and Where to Find investors in South africa $10 million for each company.
TLcom is a Nairobi-based VC firm with more than $200 million in under management. Omobola Johnson is one of the managing partner of the firm. He has helped establish more than a dozen technology companies on the continent, including Twiga Foods, and a logistical trucking business. The team of the investment firm includes Omobola Johnson, who was a former Nigerian minister of communication technology.
TIDE Africa is an equity fund that invests into growth-stage tech companies in SSA. It will invest between $500,000 and $10 million in early-stage companies that are focusing on Series A and II rounds. The fund will be primarily focused on Anglophone Africa but it plans to invest in Eastern, and Southern African countries. In Kenya for instance, TIDE has invested in five companies that are growing rapidly in the digital sector.
Omidyar Network’s $71 million TEEP Fund
The Omidyar Network is a US-based charitable investment firm that hopes to invest $100-$200 million into India over the next five years. The fund was created by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since 2010. In India the company invests in entrepreneurship, consumer internet, financial inclusion, how to get investors in south africa transparency in government, property rights, and companies that have a social impact.
The Omidyar Network’s TEEP Fund invests in projects that enhance access to government information. It’s goal is to find non-profits that use technology to develop public information portals and tools to citizens. The network believes that open access to government information enhances the public’s understanding of government processes, and in turn will result in a more engaged society that holds officials accountable. Imaginable Futures will invest the funds into nonprofit and for-profit groups that focus on education as well as health.
If you’re planning to raise money for your African start-up, you need to choose a company that has an African-centric focus. TLcom Capital, a fund manager located in London, is one such company. Angel investors have been attracted to its African investments and the team has also raised money in Nigeria and Kenya. TLcom has just announced the launch of a new fund totalling $71 million to invest in 12 startups prior to reaching profitability.
The potential of Africa venture capital is increasingly being recognized by the capital market. Private investors are increasingly seeing the potential for growth in Africa and don’t need to be limited by institutional investors. This means that raising funds is much more simple than it was in the past. Raise helps businesses to close deals in a fraction of the time and is also free of institutional constraints. There’s no perfect way to raise funds for African investors.
Understanding how investors perceive African investments is the first step. While YC hype is appealing to investors of all kinds but it’s crucial to take a look beyond the Silicon Valley giant and Agenda 2063 of the African Union. African companies are now searching for the YC signal to make contact with US investors. Kyane Kassiri is a Tunisian venture capitalist, has recently spoke about the importance of the YC signal when it comes to raising money for African investors.
GetEquity, an investment platform based in Nigeria, was founded in July 2021. It aims to bring about democratization of the process of funding startups in Africa. It is aiming to make financing African startups accessible to the common man by bringing top capital raising tools for any startup. The platform has already helped startups raise over $150,000 from a variety of investors. In addition, it also provides a secondary market that allows investors to buy other investors’ tokens.
Like equity crowdfunding, investing in companies in the early stages can be an extremely exclusive business. It is typically only available to the most prominent individual angel investors, capital institutions, and syndicates. It is not accessible to family members and friends. However, new startups are trying to disrupt this privileged arrangement by opening up access to startup capital in Africa. It is available for both Android and iOS devices. It is free to use.
With the introduction of its blockchain-based wallet, GetEquity is making startup investing in Africa possible for everyday investors. With the help of crypto-based funds, investors can invest in African startups for as little as $10. Although this might seem like an insignificant amount when in comparison to traditional equity funding, it is still a significant amount of money. Following the recent demise of Paystack by Spark Capital GetEquity has become an ideal platform for investors from Africa who want to invest in Africa.
Bamboo’s first hurdle is convincing young Africans to invest in the platform. Investors in Africa had few options before now such as crowdfunding, foreign direct investment (FDI) as well as legacy finance companies. A mere third of the African population has been able to invest on any platform. But now, the company says it’s expanding into other parts of Africa with plans where to find investors in South africa launch in Ghana in April 2021. As of this writing more than 50,000 Ghanaians have signed up for the waitlist.
Africans do not have many options for saving money. With inflation at around 16 percent, the currency is depreciating against the dollar. A dollar investment can help safeguard against inflation as well as the decline of the dollar. Bamboo has seen rapid growth over the last two years, is a platform that lets Africans to invest in U.S. stock options. Bamboo plans to launch in Ghana in April 2021, and already has over 500 users who are waiting to get access.
Once registered, investors are able to cash in their wallets using just $20. The funds can be accessed via credit cards, bank transfers and payment cards. They can then trade ETFs and stocks and receive market updates. As Bamboo’s platform is secure at the bank level and dependable, it can be utilized by anyone within Africa that has an authentic Nigerian Bank Verification Number. Bamboo’s services can also be utilized by professional investment advisors.
There are a few reasons for why Nigeria is a hub for legitimate investment and business. The Nigerian film and entertainment industry is among the biggest in Africa. The country’s growing fintech industry has led to an increase in startup formations and VC activity. TechCrunch spoke with Iyinoluwa Abodeji, one of Chaka’s most prominent backers. She stated that the progress of the country will eventually open doors for investors of a new class. In addition to Aboyeji’s investment, Chaka has also secured seed-funds from the Microtraction fund which is headed by Y Combinator CEO Michael Seibel.
Beijing has been more interested in African investments due to the declining relationship between the US and China. Increasing anti-China sentiment and the trade war has made it more attractive for investors to invest in African companies that aren’t in the US. While Africa has a number of developing economies, the majority of markets aren’t big enough for venture-sized firms. African entrepreneurs must be ready to adopt an expansion-minded mindset and create a coherent expansion story.
The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a safe and secure platform to invest in African stocks. Chaka is free to join and you’ll receive a 0.5 percent commission on every trade. Cash withdrawals are able to take up 12 hours. Withdrawals of sold shares however could take up to three days. In both instances the cash paid for the sold shares is settled locally.
The increase in investors willing to invest in Africa is a positive sign for Africa. The country’s economy is stable and its governance is sound, which is a major draw for Where To Find Investors In South Africa foreign investors. This has led to a rise in living standards in Africa. Africa is still a risky investment area. Investors should exercise caution and do their due diligence. There are many opportunities to invest in Africa, but the continent must make improvements to draw foreign capital. In the next few years, African governments should work to create more conducive environments for business and improve its business environment.
The United States is more willing to invest in the economies of Africa via foreign direct investments. In 2013, U.S. governments helped in the development of a major healthcare financing facility in Senegal. The U.S. government also helped secure investment in new technologies in Africa and also helped pharmacies in Kenya and Nigeria stock high-quality medicine. This investment can help create jobs and create long-term partnerships between the U.S.A and Africa.
While there are numerous opportunities in the African stock market It is essential to be aware of the market and perform due diligence to make sure that you don’t lose money. If you are a small investor, it’s recommended to invest in exchange-traded funds (ETFs), which are funds that track a broad basket of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are a convenient way to trade African stocks on the U.S. stock market.