Africa’s startup ecosystem is rapidly expanding, fueled by a surge in venture capital funds dedicated to empowering innovative founders. With diverse investment focuses—from financial services and healthcare to climate tech—these venture capital firms are not only providing capital but also fostering growth through mentorship, resources, and strategic support. VC funds in Africa bring a unique value proposition, creating a vibrant landscape for entrepreneurs tackling some of Africa’s most pressing challenges.
In this guide, we’ll explore some of the top VC funds in Africa, including Ingressive Capital, Ventures Platform, 54 Collective, Delta40, and Techstars Accelerator. We’ll also outline essential factors to consider when selecting the right VC for your startup, such as alignment with your industry, the level of support offered, and your company’s growth strategy. For founders ready to build impactful solutions, this guide offers insights into finding the perfect funding partner to help your startup thrive.
1. Ingressive Capital
Ingressive Capital is one of the top Series A VC Funds in Africa. It was founded in 2017 by Maya Horgan Famodu. So far, they’ve invested in 50 startups in four African countries. Ingressive Capital focuses on three main sectors: financial services, marketplace, and well-being.
Like the majority of VC firms, startups have to meet several requirements to be considered by Ingressive Capital. These requirements include month-on-month growth in revenue or users, founders must have known each other for more than six months, etc.
Ingressive Capital’s goal is to create an ecosystem that empowers founders through access to technical education, entrepreneurship, and capital. They’re involved in successful startups across Africa such as PayStack, Evolve Credit, and more.
2. Ventures Platform
Ventures Platform invests in companies that solve for non-consumption, plug infrastructural gaps, and democratize prosperity in Africa. It has a whopping 75+ portfolio companies spread across six African countries, $1 Billion in raised capital, and 140+ founders.
The top VC firm invests in different sectors such as healthcare, climate, financial services, FMCG, and much more. Startups in their portfolio include Marketforce, Chowcentral, Paystack, Creditclan, and others.
3. 54 Collective
54 Collective, previously known as Founder Factory Africa, rebranded into a full-blown Venture Capital firm. Founder Factory Africa was an accelerator – it provided Venture Build and Venture Scale programs to early-stage African startups. 54 Collective invests in ventures from idea to pre-series A by offering capital and support through their Venture Success Platform.
54 Collective incentivizes female founders by providing an additional $50,000 in funding. The fund stands out in the support it provides to founders, such as introductions to potential customers, perks, training, etc. These are critical to the success of 54 Collective’s portfolio companies.
4. Delta40
Delta40 is a Venture Studio and VC Fund that focuses on climate-related ventures. It’s based in Nairobi, Kenya, and invests in climatetech startups across Africa. Delta40 invests $100k-600k into startups they’ve identified and provides venture-building support via its venture studio and partners.
They currently have ten companies in their portfolio and are looking to add forty additional climatetech startups by 2050. As mentioned earlier, Delta40 offers more than just financial support but also talent acquisition, strategy advisory, product & Go-to-market strategy, and more.
5. Techstars Accelerator
Techstars Accelerator, a global fund and accelerator, runs a three-month program that helps startups find product-market fit, gain traction, access capital and mentorship, and other support services. During this time, startups undergo an intensive curriculum focused on business development, growth strategies, customer discovery, fundraising, and product development. Techstars offers $20,000 in funding for 6% equity, with the potential for additional convertible note funding up to $100,000.
With accelerators located in major cities worldwide and industry-focused programs (like those for FinTech, SaaS, and Climate Tech), Techstars has a global presence that helps founders connect with regional resources while staying plugged into a worldwide network.
How to Choose the Right VC Fund for Your Startup
Africa is experiencing a boom in venture capital funds. However, VC funds in Africa come in different shapes and sizes. Here’s how to wade through them and pick the right VC fund for your startup.
1. Do you really need a VC?
Before salivating at the idea of getting funded, it’s important to evaluate whether your startup is the right fit for VCs and vice versa. For example, the majority of African VCs favor tech-based companies solving problems in different industries such as healthcare, finance, climate, etc. VCs are interested in companies that can grow fast, tap into huge markets, and have the potential to generate significant revenue. On the other hand, if your startup can grow organically without the need for a VC then it’s a good idea to remain bootstrapped. Remember, taking VC money means relinquishing a stake and some control of your company.
2. Investment thesis
VC funds such as Delta40 invest only in climate startups. Other funds such as 54 Collective dabble in different sectors. For this reason, it’s important to evaluate the investment thesis of different VC funds and pick the one that aligns with your business model and sector. Thanks to their domain expertise, they’ll provide you with valuable support and connections.
3. Guidance & support
When choosing a VC, it’s important to look beyond the cheque they’ll cut you and investigate what else they have to offer. Does the VC provide leadership and hiring support? Do they coach you on how to run a startup and avoid potential pitfalls? Do they introduce you to potential customers or connections that would impact your startup?
On the other hand, some startup founders prefer VCs who employ a hands-off approach and give them autonomy. It’s important to understand what you’re looking for and seek a VC fund that aligns with your goals.
How to Hire Five-Star Employees for Your Startup
Once you get funding, it’s crucial to hire the right people.
“The key for us, number one, has always been hiring very smart people.” – Bill Gates.
To do this, it’s important to look beyond borders and open up the African talent pool.
At Remote Jobs Africa we help you do exactly that. We have brilliant remote workers ready to take up different remote roles within your startup. In addition, we can help you search and identify the right talent for your organization. If interested, please shoot me an email at ian[at]remotejobs[.]africa for more information.
Conclusion
In conclusion, Africa’s venture capital landscape is thriving, with numerous funds available to support startups across a range of sectors, from fintech and healthcare to climate tech and e-commerce. Choosing the right VC fund involves more than just securing capital; it’s about finding a partner whose vision, support, and expertise align with your startup’s goals. Whether it’s through the ecosystem-building approach of Ingressive Capital, the broad industry support from Ventures Platform, or the climate-focused backing of Delta40, African VCs are fostering innovation that addresses the continent’s unique challenges and opportunities.
With the right VC partner, startups can access not only the funds they need but also the resources, mentorship, and networks critical for long-term success. And as your startup scales, finding the right talent is key. Platforms like Remote Jobs Africa make it easy to connect with skilled African remote workers, ensuring that your company has the support it needs to thrive in a competitive market.