Ventures Platform Raises $64M for Second African Investment Fund
Ventures Platform, a leading early-stage venture capital firm based in Lagos, Nigeria, is on track to close its second fund at $75 million, having already secured $64 million in commitments. This significant investment round is bolstered by key participation from both the Nigerian government through its Investment in Digital and Creative Enterprises (iDICE) program – marking the first government investment in a Nigerian VC fund – and a diverse group of international limited partners. The firm’s success, particularly in attracting recurring investment from its first fund’s investors, underscores its established reputation for identifying promising startups within Nigeria’s burgeoning tech landscape, a landscape currently home to the largest number of startup unicorns on the African continent. Among the investors are prominent global backers including former Y Combinator CEO Michael Seibel, IFC, British International Investment (BII), Proparco, Standard Bank, MSMEDA, and AfricaGrow, alongside several European family offices such as Alder Tree Investment.
The firm’s growth strategy centers around a $46 million inaugural fund launched in 2022, strategically focused on pre-seed and seed rounds. With the release of its second fund, Ventures Platform is expanding its investment scope to include Series A rounds, intending to pursue investments with increased conviction and seeking larger ownership stakes – a move anticipated to benefit many African founders currently navigating a more challenging fundraising environment following a pullback from Silicon Valley firms. This adjustment arrives at a critical juncture, as funding activity across the African tech ecosystem has surged past $12 billion since 2015. The firm’s approach prioritizes addressing “painkiller” businesses—companies that solve unmet needs and provide essential services to markets with limited access to existing solutions, with prominent examples including fintechs like Visa-backed Moniepoint and Stripe-owned Paystack, which have unlocked new markets for online payments and small business banking, and remittance app LemFi, backed by Left Lane. Furthermore, Ventures Platform’s portfolio includes companies like SeamlessHR and OmniRetail, backed by the Gates Foundation and Norfund respectively, alongside Raenest and Remedial Health.
Despite recent concerns regarding exits and a slowdown in funding—decreasing from $5 billion in 2021 to $2 billion last year—Ventures Platform has successfully cultivated investor confidence. The investor points to the first fund’s strong performance, ranking among the top performers globally based on TVPI and IRR for its vintage year, and highlights the firm’s tactics to deal with those challenges. Notably, Ventures Platform has secured capital from investors who recognize the developmental trajectory of venture ecosystems in other markets and understand the firm’s commitment to long-term growth. Moreover, the investor credits the successful recycling of capital from past syndicates – including five angel syndicates – between 2016 and 2022, as a key factor in attracting LP support. This approach reflects a deep understanding of the nuanced investment landscape and a calculated strategy to address the challenges of a volatile market.
Addressing concerns about the continent’s funding slowdown, Ventures Platform’s founder, Kola Aina, emphasizes Africa’s enduring potential, characterizing it as “the purest asymmetric play for non-consensus alpha” – a strategic assessment highlighting the high-risk, high-reward investment opportunities within the region. Aina maintains that for global capital allocators seeking true diversification, Africa represents a compelling prospect. Africa’s demographic trajectory, with projections suggesting one in four humans will be African by 2050, combined with the continent’s robust GDP growth rate, which surpasses that of the United States, paints a picture of significant future value. Aina notes that much of this potential remains “offline,” indicating immense opportunity for ventures that can bridge this gap. Ultimately, Ventures Platform’s investment strategy embodies a long-term vision rooted in local knowledge, strategic partnerships, and a keen understanding of the transformative power of technology across Africa.
