There are numerous reasons to invest, but investors must be aware that Africa will test their patience. The African markets are volatile and time horizons may not always work. Even the most sophisticated businesses might have to review their business plans as Nestle did last year in 21 African countries. Many countries also face deficits. These gaps must be filled by resourceful and bold investors who will bring more prosperity to Africa.
TLcom Capital’s $71 million TIDE Africa Fund
TLcom Capital’s latest venture closed at $71 million. The predecessor fund was closed in January last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in tech companies in Kenya and Nigeria. TIDE Africa II will concentrate on fintech companies located in East Africa. The investment firm also has offices in Nigeria and Kenya. TLcom’s portfolio includes Twiga Foods, Andela, uLesson and Kobo360. Each company is worth $500,000 and $10 million.
TLcom is a Nairobi-based VC company, how to get investors in south africa has more than $200 million under control. The firm’s Managing Partner, Omobola Johnson, has helped launch over dozen tech companies across the continent including Twiga Foods and a trucking logistics company. The investment firm’s team is comprised of Omobola Johnson, who was the former Nigerian minister of technology and communication.
TIDE Africa is an equity investment fund that invests in growth stage tech companies in SSA. It will invest between $500,000 to $10 million in companies that are at the beginning of their development that are focusing on Series A and II rounds. Although the fund will be focusing on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. TIDE is one example. It has invested in five high-growth digital companies in Kenya.
Omidyar Network’s $71 Million TEEP Fund
The Omidyar Network, a US-based company that invests in philanthropy, how to get investors hopes to invest between $100 and $200 million in India over the course of five years. Pierre Omidyar, co-founder of eBay established the fund and has invested $113 million in 35 Indian companies. The fund invests in India’s consumer internet, entrepreneurship and financial inclusion. It also has investments in property rights, transparency in government, government transparency, and companies with social impact.
The Omidyar Network’s TEEP Fund invests in projects that improve access to government information. Its goal is to identify nonprofits using technology to develop public information portals and tools for citizens. The network believes that open access to government information increases citizens’ awareness of the government’s processes, which creates a more involved society that holds government officials accountable. Imaginable Futures will invest the funds in nonprofit and for-profit organisations that focus on education and health.
Raise
If you’re planning to raise funds for your African startup, it’s best to choose a company funding options that has a strong Africa-centric focus. One of these companies is TLcom Capital, a fund management firm with its headquarters in London. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund that intends to invest in 12 startups before they reach revenue.
The appeal of Africa venture capital is increasingly being recognized by the capital market. Private investors are becoming more aware of the potential of Africa for growth, and don’t have the same restrictions as institutional investors. This means that raising money has never been more simple. Raise helps businesses to close deals in a fraction of the time and is free of institutional restrictions. There isn’t a single way to raise funds for African investors.
The first step is to understand how investors think about African investments. While YC hype is appealing to a large number of investors It is crucial to take a look beyond the Silicon Valley giant and Agenda 2063 of the African Union. In the end, African startups are looking for the YC signal before approaching US investors. Kyane Kassiri is an Tunisian venture capitalist, recently spoke on the importance of the YC signal when it comes to raising money for African investors.
GetEquity
GetEquity, an investment platform that is based in Nigeria was founded in July 2021. It aims to democratize the funding of startups in Africa. Its goal is to make funding for African startups accessible to all by providing capital raising tools and world-class capital to all startups. The platform has already helped startups raise more than $150,000 from a variety of investors. It also provides secondary markets for investors to buy tokens from other investors.
Like equity crowdfunding, investing in early-stage companies is a highly exclusive venture which is generally only accessible to leading individual angel investors and capital institutions, as well as syndicates. It is rarely available to friends and family. However, new startups are trying to break this privileged system by making it easier to access startup funding in Africa. The platform is available on iOS and Android devices and is free to use.
With the launch of its wallet based on blockchain, GetEquity is making startup investing in Africa possible for everyday investors. Investors can invest as low as $10 in African startups through crypto funds. Although this is a small amount, it’s still a significant amount of when compared to traditional equity financing. Following the recent demise of Paystack by Spark Capital GetEquity has become an ideal platform for African investors looking to invest in Africa.
Bamboo
The first obstacle for Bamboo is to convince young Africans to invest in the platform. At present, investors looking for projects to fund (bookmarkswing.Com) in Africa were limited to a few options including foreign direct investment (FDI) and crowdfunding and traditional finance companies. In fact, only about one-third of the population has invested on any platform. However the company claims it’s expanding into other regions of Africa and plans to 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 to save money. The currency is losing value against the dollar due to an increase that is close to 16%. Investing dollars can help you protect yourself from inflation and the possibility of a declining dollar. One platform that allows Africans to invest in U.S. stocks is Bamboo which has seen rapid growth over the past two years. Bamboo will begin operations in Ghana in April 2021. Bamboo has already attracted more than 50k users waiting to access.
Once registered, investors can get their wallets funded with as little as $20. The funding process can be accomplished through credit cards, Investors looking for projects To fund bank transfers, and credit cards. Then, they can trade ETFs, stocks, and stocks and receive market updates. Bamboo’s platform is secured at the bank level which means that anyone in Africa can use it as long as they have a valid Nigerian Bank Verification number. Bamboo’s services can also be utilized by professional investment advisers.
Chaka
There are a few reasons that Nigeria is a thriving hub for legitimate investment and business. Its film and entertainment industry is among the biggest in the continent, and the country’s growing fintech ecosystem has resulted in an explosion in the formation of startups and VC activity. One of the most well-known supporters of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country’s modern trends will ultimately open doors to a new class of investors. Chaka also received seed-funds from Microtraction which is run by Michael Seibel, CEO of Y Combinator.
Beijing has been more interested in African investments due to the declining relationship between the US and China. An increase in anti-China sentiment as well as the trade war have made it more attractive to investors to invest in African businesses outside of the US. While Africa has a number of developing economies, the majority of markets are not large enough for venture-sized businesses. The founders of companies in Africa must be ready to adopt an expansionist mindset and lock in a cohesive expansion narrative.
The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a safe and secure place to invest in African stocks. Chaka is free to join and provides the benefit of a 0.5% commission on every trade. Cash withdrawals can take up to 12 hours. In the case of withdrawals of shares sold on the other hand can take up to three days. Both cases are handled locally.
Rise
The rising number of investors eager to invest in Africa is good news for Africa. Its economy is stable and its governance is sound, which is why it is a popular destination for international investors looking for projects to fund (bookmarkswing.Com). This has raised the standard of living in Africa. Africa is still a risky investment location. investors looking for entrepreneurs should be cautious and do their studies. There are numerous opportunities for investment in Africa, but the continent must improve its infrastructure to draw foreign capital. In the next few years, African governments should work to create more business-friendly environments and improve the business environment.
The United States is more willing to invest in Africa’s economies via foreign direct investment. In 2013, U.S. governments helped advance a major healthcare financing facility in Senegal. The U.S. government also supported investment in new technologies in Africa and helped pharmacies in Nigeria and Kenya have access to high-quality medicines. Such investment can create jobs and create a long-term partnership between the U.S. and Africa.
There are a lot of opportunities to invest in the African stock exchange. However, it is crucial to be aware of the market and perform your due diligence to avoid losing money. If you’re a smaller investor, you should invest in exchange-traded funds (ETFs) which are funds that track an extensive array of Sub-Saharan African companies. American depositary receipts (ADRs) which are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.