African VC Loftyinc Capital launches a third seed and Serie A Fund, reaches $ 43 million first closing

One of the most active investors in Africa known for the early betting of unicorns such as Flutterwave., Tankand Wavehas provided fresh capital to invest in start -ups across the continent. This comes as the financing deals and the volumes in Africa saw only a slight immersion last year, according to a report by VC Company Partech.

Loftyinc Capitalwhich mostly supported start -ups at the stages of seeds and seeds for more than a decade, reached the first prison of their third fund, Loftyinc Alpha, at $ 43 million.

Unlike its earlier focus, this fund will focus on starting series and series A, retaining its geographical focus in Nigeria, Egypt, Kenya and Francophone Africa, founder and managing partner Idris Ayo Belo told TechCrunchS

The first loved one attracted a diverse group of limited partners, including sovereign funds for the Middle East and Africa, such as the Egyptian Msmeda and the Anava Fund in Tunisia. Developmental Financing Institutions such as FMO, Proparco (Fisea), Africagrow, IFC and US -based first close partners also participated with high net worth (HNIS) and European family offices.

Belo, who launched Loftyinc’s first investment tool in 2012, is one of the few investors who witnessed the technological evolution of Africa firsthand. His company supported start -ups through different phases – from starting startup beyond Fintech and the rise of technological talents to the 2021 unicorn boom and the current delay in funding.

Pre-seed, managed by an angel network, which has since grown into a self-supporting community of 250+ investors in Africa and diaspora, laid the basis of the first structured risk fund of Loftyinc five years later.

In 2017, a Lagos -based venture capital increased its first institutional fund to $ 1.1 million, exclusively by HNI and fully deployed in Nigeria. White, who launches the fund with Marsha Wolfe and Michael ExpetitemiHe said he had delivered a 5.7x DPI (money return) to his investors led by exits and secondary Flutterwave and a major startup of Health Tech supported Reliance HealthS

By 2021 Loftyinc launched its second VC fund initially Directed to $ 10 million But it closes to $ 14.2 million. This second fund has expanded outside its market scope outside Nigeria and uses a general African approach, investing in startup companies in Egypt, South Africa and Francophone Africa-guardians, where Loftyinc aims to remain active.

Among his investors was Meta, Through its NPE teamNoting the first and only investment of the technology giant in African VC.

Overcoming the seeds and a series a Gap

With its third Loftyinc Fund, it refines its investment strategy for dealing with a significant challenge in Africa starting ecosystem: the low graduation rate from before the seeds to the Africa Africa VC Landscape saw that the largest average of the ticket last year) decreased in Series A (-1 of Partech.

Belo notes that while Loftyinc and Micro Funds Angel Networks have helped to cover pre -seeds and circles of seeds, the real difference in funding is outlined in a stage in late seeds where startup companies need structured support for scaling and providing capital A A.

“In pre -seed and seeds, there is a lot of over, but in Serie, and the questions that investors ask are very different,” he said. “Our goal is to get into SEED, but our mandate is to help you get to Serie A. We want to be the company that gets startup over this hump.”

Позиционирането на стартиращи компании за кръгове от серия А, където планира да направи последващи инвестиции и да въведе ко-инвеститори, също ще засили тръбопровода „опортюнистично“ за африканските инвеститори от най-високо ниво в етапа на серия А и растеж, като например Tlcom capital., Partechand Northern lights22S

Belo says Loftyinc is distinguished by the crowded investment market at an early stage in Africa, using the operating expertise and networks of its partners. With over 200 investments and 14 outputs, the managing partner claims that the company provides more than capital by offering market access, business development support and investor matches of its portfolio companies.

Loftyinc has expanded its leadership team with its largest fund to keep up with its developing strategy and growing portfolio, an important move for regional expertise and implementation as it invests in start -ups that require localized maintenance.

In the last two years, the company has added Mariam Kamel and Kevin Simmons as common partners. They will apply their investment banking, investment of angels and operating experience in VC in the Middle East and Africa to help deepen the company’s presence in the regions of the East, North and Francophone in Africa (where at least 30% of the fund will be located).

“They bring experience in the funds and investors who connect with our geographical plans for expansion and exit,” Belo said, adding that Oluwagbemi and Wulff will continue to manage previous Loftyinc funds while supporting the transition to this more large, more structured fund.

Loftyinc Alpha says it supports the innovations that lead to the “daily economy of Africa”. The bigger part of this will rotate around the financial services that remains the most dominant sector in African technology, representing 60% of Over $ 2 billion dollar deals with equity Startups collected last year; Logistics and transport; Health technologies; retail trade; climate; Both Deep Tech and AI, where they are applied as helpers in other sectors.

The company’s portfolio covers remarkable startups, including a vehicle financing platform supported by Uber MooveThe slave -style trading app in Egypt Thndrand African B2B platform for e -commerce OmniretailS