Africa’s tech scene is exploding, and guess who’s fueling the rocket ship? Venture Capitalists! Venture capital (or VC) firms play a crucial role in scaling the growth and development of startups in Africa. They provide funding, mentorship, and expertise to promising entrepreneurs and help transform their innovative ideas into successful businesses.
Some top venture capital firms investing in Africa include Ingressive Capital, EchoVC Partners, TLcom Capital, and Alithea Capital. These companies invest in various startups on the continent involved in everything from fintech and real estate to waste management and healthcare.
In this article, we’ll explore 9 of the most popular venture capital firms actively investing in Africa and significantly impacting the continent’s startup ecosystem. We’ll focus exclusively on African VCs that are top choices for local founders and investors.
Why is Africa hot for investing right now?
Investment in Africa has been booming for years, attracting significant attention from investors worldwide. In fact, according to a 2023 report by the United Nations Trade and Development Organisation (UNCTAD), FDI (or foreign direct investment) has flowed into critical regions on the continent for over a decade.
There are several reasons for this trend, and all of them point to one thing: Africa is key to the future of the global economy.
Here’s why the continent is an attractive destination for investors:
- Young and growing population: Africa has the youngest population in the world, with over 65% of its population under 30. This demographic dividend presents a massive market for tech and consumer goods as well as a vibrant, entrepreneurial workforce ready to drive innovation.
- Increasing Internet and mobile penetration: The widespread adoption of mobile phones and the Internet has created new opportunities for tech startups. With internet penetration increasing and mobile technologies becoming more accessible, startups can reach a broader audience and scale rapidly.
- Untapped markets and opportunities: Many sectors in Africa remain underdeveloped — offering vast opportunities for innovation and growth. Areas such as fintech, agritech, edtech, healthtech, and even e-commerce are ripe for disruption — providing fertile ground for startups to introduce new solutions and capture significant market share.
- Innovative solutions to local problems: African startups are known for their creative solutions tailored to regional challenges. From mobile money platforms like MTN MoMo to agritech solutions that increase farmers’ productivity, these innovations address real problems and have the potential to scale beyond the continent.
These factors collectively create a dynamic and promising environment for investment in Africa. As the continent continues to develop and integrate into the global economy, the opportunities for high returns and impactful investments make it a compelling destination for venture capitalists.
9 of the top venture capital firms investing in Africa
The tech industry has been booming on the African continent for years — as has the venture capital scene. According to TechCrunch, VC funding in Africa was between $2.9 billion and $4.1 billion in 2023 — an impressive amount, even if it was way lower than the $4.6 billion to $6.5 billion startups raised the previous year.
Still, it’s proof that VCs are still wholly interested in practical African ideas and are willing to help fund them into profitable businesses. So, who are the players?
Here are nine of the most popular venture capital firms investing in Africa today:
- Ingressive Capital
- TLcom Capital
- Alitheia Capital
- CRE Ventures
- EchoVC Partners
- Ventures Platform
- Microtraction
- LoftyInc Capital
- Future Africa
In the next section, we’ll see why these companies made this list by exploring their locations, minimum check size, what industries they invest in, and some of their top portfolio companies.
1. Ingressive Capital
`Ingressive Capital, founded by Maya Horgan Famodu, is an early-stage, Lagos-based $50 million VC firm investing in Africa’s technology and software companies. We provide seed and pre-seed funding to tech-enabled startups in various sectors — including autotech, health tech, femtech, and fintech.
One of our most popular portfolio companies is Bamboo — a digital investment platform that gives Africans real-time access to buy, hold, or sell stocks. There’s also SeamlessHR — an HR technology company that helps African businesses grow efficiently with a modern end-to-end HR management system.
We also offer mentorship and access to a vast network of investors and industry experts to help forward-thinking startups scale and succeed. We currently target 10% ownership and offer founders up to $500,000 in funding for startups in Nigeria, Kenya, Ghana, Egypt, and Morocco.
2. TLcom Capital
TLcom Capital has offices in Lagos, London, and Nairobi. It focuses on sectors like fintech, edtech, and agritech and provides funding to startups at various stages of growth. The company also provides operational support and strategic counsel to help startups expand and negotiate the complexities of the African business environment.
Their portfolio includes Andela (a pan-African engineering talent company) and Vendease, a B2B marketplace for African restaurants.
By nurturing a thriving startup ecosystem, TLcom Capital drives economic development and creates sustainable solutions to some of the continent’s most pressing challenges.
3. Alitheia Capital
Alitheia Capital is a pioneering gender-lens VC fund that invests in scalable businesses that empower women and achieve gender equality. It focuses on sectors such as healthcare, education, and agriculture and provides financial and non-financial support to startups.
Founded in 2007 by a group of passionate investors and entrepreneurs, the company is dedicated to providing capital to women-led businesses and backing entrepreneurs who enhance access to essential goods and services for small and growing businesses and low-income households.
With a diverse portfolio of investments across different regions and industries, Alitheia Capital has backed Tomato Jos (an agritech startup that connects farmers directly to consumers) and Reelfruit (a company that provides financing and logistics solutions for fruit farmers).
4. CRE Ventures
Headquartered in New York, USA, but focusing on tech companies that are leveraged to Africa, CRE Ventures invests in early-stage companies across various sectors. Like most VCs, it focuses on helping startups expand their networks and gain access to potential customers and partners.
The company’s portfolio includes Flutterwave and Gokada.
5. EchoVC Partners
EchoVC Partners is a Lagos and Nairobi-based venture capital firm that invests in early-stage and growth-stage technology companies in sub-Saharan Africa. They invest across several industries on the continent and help startups expand their networks and gain access to potential customers and partners.
EchoVC’s portfolio includes innovative companies operating in 12 African countries, such as OneLiquidity (a Web3 infrastructure company) and hotels.ng (a leading online hotel booking platform in Nigeria).
6. Ventures Platform
Based in Lagos, Nigeria, Ventures Platform is a pan-African VC firm that invests in early-stage technology companies. The company mainly backs mission-driven founders building capital-efficient platforms that democratise prosperity, plug infrastructural gaps, connect underrepresented communities, and solve non-consumption in Africa.
Non-consumption occurs when Africans can’t buy and use products or services that could help them — typically due to cost, access, time, or skill constraints.
For example, despite global progress, more than half of the continent’s population still faces food insecurity and lacks access to healthcare, housing, insurance, and reliable electricity.
Ventures Platform helps solve this problem and currently operates in seven countries on the continent.
7. Microtraction
Microtraction isn’t your typical VC firm. It specialises in microtraction investing, providing smaller funding rounds (up to $100,000) for startups in the very earliest stages of development (pre-seed). It’s perfect for founders with a brilliant idea and a lean operation who need that initial boost to get their concepts off the ground.
Their portfolio reveals gems like Famasi, which is building pharmacy infrastructure across Africa, and Treepz, a revolutionary car-sharing model.
8. LoftyInc Capital
Based in Lagos, Nigeria, LoftyInc Capital is a VC firm that focuses on early-stage ventures across Africa and even the diaspora. It provides these ventures with crucial funding, ranging from $50,000 to $250,000.
This investment sweet spot allows LoftyInc Capital to support innovative ideas across various sectors, from fintech and e-commerce to healthtech and agritech.
One of their portfolio companies, Lenco, is a prime example. This innovative platform is making waves in cross-border payments, simplifying transactions for businesses and freelancers alike.
9. Future Africa
Future Africa connects investors with startups tackling Africa’s most pressing challenges — from education and healthcare to agriculture and sustainability. They also provide coaching and foster a supportive community for founders.
However, their investment size leans towards the smaller side—potentially reaching up to $50,000.
One of their (and our) most notable portfolio companies is Bamboo, a revolutionary investment platform that democratises access to the US stock market for Africans. It allows them to invest in companies they believe in with just a tiny amount of money.
How many venture capital firms are there in Africa?
Africa’s venture capital landscape has been increasing for years now. While it’s challenging to pinpoint the exact number of VC companies operating in Africa due to the industry’s dynamic nature, several hundred firms are actively investing in startups across the continent.
The number of VC firms continues to increase as more local and international investors recognise Africa’s immense potential for growth and innovation.
Still, this large pool means that founders and investors have several options to partner with to advance their business needs.
What industries are venture capital firms in Africa investing in?
VC firms in Africa are investing in a wide range of industries and sectors. These include (but are not limited to) fintech, e-commerce, health tech, reproductive services, education technology (edtech), agriculture, renewable energy, logistics, and even cleantech.
These sectors offer significant growth opportunities and have the potential to address fundamental challenges faced by the African population.
How to know when a VC firm is right for you
So, with so many VCs investing in many industries on the continent, how can you know which VC is right for you as a founder or limited partner? Finding the right venture capital firm for your startup requires careful consideration and research.
Here are a few key factors to consider when choosing a VC:
- Founder support. When choosing a venture capital firm, one of the most critical factors is the support it offers founders. Beyond just providing capital, a good VC should act as a partner, mentor, and advisor — helping you navigate the complex journey of building a successful startup.
- Alignment of interests. Ensure the venture capital firm’s investment thesis aligns with your business model and long-term goals.
- Track record. Assess the firm’s track record, including its previous investments and success stories. Look for portfolio companies similar to yours and evaluate how the firm has supported them.
- Network and expertise. Evaluate the firm’s mentors, partners, and advisors network. Consider how their knowledge and connections can add value to your startup.
- Shared vision. Seek a venture capital firm that shares your vision and is genuinely passionate about your industry and the problems you are solving.
- Terms and conditions. Carefully review the investment’s terms and conditions, including the equity stake, funding amount, and potential dilution.
Ingressive Capital is an excellent example of a company to follow if you’re considering partnering with a VC in Africa.
As our thesis reflects, we’re clear on our goals and have a track record backing profitable ideas. We also have an impressive team and pursue unambiguous partnership terms with companies we invest in ($500,000 for up to 10% ownership in pre-seed and seed-stage African tech).
Why should you partner with Ingressive Capital?
One key strategy that separates Ingressive Capital is our hands-on approach to working with our portfolio companies. We provide financial support and actively engage with the startups in our portfolio to help them develop their business models, refine their products, and navigate the numerous challenges of scaling in the African market.
This personalised support has been instrumental in the success of many of our portfolio startups — including Paystack, which Stripe acquired in October 2020 for a record $200 million.
Additionally, we are known for our commitment to diversity and inclusion in the tech industry. That’s why we actively seek out and support startups founded by underrepresented entrepreneurs — including women and minorities.
At Ingressive, we don’t just fund the company or back the idea. We partner with the founder.
Final thoughts
Venture capital firms like Ingressive Capital are vital drivers of economic growth and innovation in Africa. Their funding and expertise empower entrepreneurs to build scalable businesses that address critical challenges and create employment opportunities.
Therefore, you should apply to Ingressive Capital if you’re a pre-seed or seed-stage founder with a tech-enabled startup that you know will change the continent. Let’s build Africa’s future together!
