How To Investors Willing To Invest In Africa And Live To Tell About It
While there are many reasons to invest in Africa, business funding investors should know that the region will test their patience. The African markets are unstable and time horizons do not always work. Even sophisticated companies may need to adjust their business plans as Nestle did in 21 African countries last year. Many countries also have deficits. It will take the courage and determination of investors to bridge these gaps and bring greater prosperity to Africans.
TLcom Capital’s $71 Million TIDE Africa Fund
The latest venture of TLcom Capital has closed at a reported $71 million. The fund’s predecessor was shut down in January last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The first fund made investments in tech companies in Kenya and Nigeria. TIDE Africa II will be focusing on East African fintech firms. The investment firm has offices in Kenya and Nigeria. The portfolio of TLcom includes Twiga Foods, Andela, uLesson and business funding Kobo360. Each company is worth between $500,000 and $10 million.
TLcom is a Nairobi-based VC firm with more than $200 million under management. Omobola Johnson is the managing partner of the firm. He has been instrumental in helping launch more than a dozen tech businesses on the continent, such as Twiga Foods, and a logistical trucking business. Omobola Johnson (a former minister of technology for communication in Nigeria) is part of the team of the investment firm.
TIDE Africa is an equity fund that invests into growth-stage tech companies in SSA. It will invest between $500,000 to $10 million in early-stage companies that are focusing on Series A and II rounds. The fund will be focused on Anglophone Africa but it plans to invest in Eastern and Southern African countries. In Kenya, for example, TIDE has invested in five companies with high growth in digital technology.
Omidyar Network’s $71 million TEEP Fund
The Omidyar Network, a US-based philanthropic investing firm, aims to invest between $100-$200 million in India over the course of five years. The fund was created by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian businesses since 2010. The fund invests in the Indian business and consumer internet, as well as financial inclusion. It also has investments in property rights, government transparency, how to get funding for a business transparency of the government, and companies with social impact.
The Omidyar Network’s TEEP Fund makes investments that are specifically designed to improve access to government information. Its objective is to identify non-profit organizations that make use of technology to build public information portals and tools for citizens. The group believes that access to government information improves the public’s understanding of government processes and creates a more engaged society that ensures that government officials are accountable. Imaginable Futures will use the funds to invest in for-profit and non-profit organizations that focus on healthcare and education.
You should select a company that is Africa-centric if you are looking to raise capital for your African startup. One such company is TLcom Capital, a fund management company based in London. Angel investors have been attracted to its African investments and the team has also raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund that intends to invest in 12 startups before they achieve revenue.
The attraction of Africa venture capital is increasingly being recognized by the capital market. Private investors are increasingly recognizing the potential for growth in Africa and aren’t restricted by institutional investors. This means that raising funds is much more simple than in the past. Raise allows businesses to close deals in a fraction of the time and is also free of the constraints of institutions. There is no one way to raise money for African investors.
Understanding how investors perceive African investments is the first step. Although many investors are attracted to YC hype, it’s essential to think beyond this Silicon Valley giant and the African Union’s agenda 2063. African companies are now searching for the YC signal to reach out to US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke about the importance of the YC signal when seeking funds for African investors.
It was founded in July 2021. GetEquity is an investment platform based in Nigeria that aims to make it easier for startups to access funding in Africa. It is aiming to make financing African startups easy for the average person by providing the best capital raising tools available to any startup. It has already helped numerous startups raise more than $150,000 from investors from all over the world. Additionally, it provides a secondary market that allows investors to buy other investors’ tokens.
Unlike equity crowdfunding investing in early-stage businesses is a highly exclusive activity that is typically only available to top angel investors and capital institutions as well as syndicates. It is not usually available to family members and friends. However, new companies are trying to break this privileged system by opening up access to startup capital in Africa. It is available on both Android and iOS devices. It is free to use.
With the introduction of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa an option for common investors. Investors can invest as low as $10 in African startups by using crypto funds. Although this may seem tiny in comparison to traditional equity funding but it’s still an enormous amount of cash. With the recent departure of Paystack by Spark Capital, GetEquity has transformed into a robust ecosystem for investors who are willing to invest in Africa.
The first challenge for Bamboo is convincing young Africans to invest in the platform. Investors in Africa had few options before the present: crowdfunding and foreign direct investment (FDI), and legacy finance companies. Only about a third of investors have invested in any platform. The company now says it is expanding into other countries in Africa, with plans to launch in Ghana by April 2021. At the time of writing, more than 50,000 Ghanaians have signed up for the waitlist.
Africans do not have many options to save money. The value of the currency is decreasing against the dollar due to an increase of nearly 16 percent. A dollar investment can help to protect yourself against 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 in the past two years. Bamboo will go live in Ghana in April 2021. It has already surpassed 50k users waiting to access.
Investors can fund their wallets starting at $20 after they have been registered. You can fund your wallet with credit cards, bank transfers, or credit cards. They can then trade ETFs, stocks, and stocks and receive market updates. As Bamboo’s platform is bank-level secure and safe, it is able to be used by anyone within Africa who has an official Nigerian Bank Verification Number. Professional investment advisors can make use of Bamboo’s services.
There are many reasons to consider why Nigeria is a hotspot for legitimate investment and business. The film and entertainment industry is among the largest in the world and the country’s expanding fintech sector has led to an explosion in startup formation and VC activity. TechCrunch spoke to Iyinoluwa Abodeji, one of Chaka’s most prominent supporters. She said that the nation’s progressive tendencies will eventually lead to a new class investors. In addition to the Aboyeji investment, Chaka has also secured seed-funds from the Microtraction fund, which is led by Y Combinator CEO Michael Seibel.
Beijing has been more interested in African investments due to the weakening relationship between the US and China. Rising anti-China sentiments and the trade war have increased the appeal of investors to invest in African companies outside of the US. The African continent is a large, emerging economies however, the majority of markets are too small to support venture-sized companies. African entrepreneurs must be ready to adopt an expansion mindset and craft a coherent expansion story.
The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a safe and secure platform to invest in African stocks. Chaka is free to join and provides the possibility of earning a 0.5% commission on every trade. Withdrawals of available cash can take up to 12 hours. On the other hand, withdrawals of sold shares can take up to three days. Both are handled locally.
Africa is enjoying positive developments due to the increasing number of investors who are willing to invest. The economy of the country is stable, and its governance is sound, which is a major draw for foreign investors. This has led to an increase in the standard of living in Africa. However, Africa is still a risky investment area and investors should be cautious and do their homework. There are numerous opportunities for investment in Africa, but the continent must improve its infrastructure to attract foreign capital. In the next few years, African governments should work to create more conducive environments for Business Funding (Www.5Mfunding.Com) and improve the business environment.
The United States is more willing to invest in the economies of Africa via foreign direct investment. U.S. governments assisted Senegal in the development of a major healthcare financing facility. The U.S. government also helped to secure investments in new technologies in Africa and also helped pharmacies in Kenya and Nigeria stock high-quality medicine. This investment could create jobs and help build long-term partnerships between the U.S.A and Africa.
There are numerous opportunities available on the African stock exchange. However, it is essential to know the market and conduct your due diligence to avoid losing money. If you are a small investor, company funding options it’s best to invest in exchange-traded funds (ETFs), which are funds that track a broad array of Sub-Saharan African companies. American depositary receipts (ADRs) that are issued by the United States, allow investors to trade African stocks on the U.S. stock exchange.