Ventures Platform raises $84M for second Africa fund
Pan-African VC firm Ventures Platform closes an oversubscribed $84 million second fund to expand early-stage startup investments beyond Nigeria.
Stock photo for illustration only, not from the actual event
- Ventures Platform closes an oversubscribed $84 million second fund.
- Expanding investment scope beyond Nigeria to Kenya, South Africa, and Egypt.
- Backing early-stage founders with check sizes of up to $3 million.
Pan-African venture capital firm Ventures Platform has successfully raised an oversubscribed $84 million for its second fund. The firm is expanding its reach beyond its home market of Nigeria, adopting a strategy shaped by a tougher and more selective venture capital environment compared to its $46 million Fund I raised in 2022.
Kola Aina, founding partner at Ventures Platform, told TechCrunch that the firm plans to support early-stage founders across sectors such as fintech, healthcare, and SaaS, focusing on areas where technology can address essential needs and build enduring businesses.
The expansion of Ventures Platform highlights a maturation in the African venture ecosystem, where Limited Partners (LPs) increasingly demand rigorous proof of portfolio value, capital efficiency, and realized returns rather than relying purely on speculative enthusiasm.
Furthermore, the firm is particularly interested in how artificial intelligence can fundamentally alter the cost structure and economics of serving African markets, rather than just serving as an added feature. The firm has already deployed capital from Fund II to five companies in Kenya, South Africa, and Egypt, with check sizes reaching up to $3 million over the next three to four years.
The fundraising journey took approximately a year and a half amidst a cautious market where LPs ask tougher questions regarding performance, portfolio construction, manager discipline, and differentiation. Investors are placing greater emphasis on capital efficiency and robust fundamentals following the broader venture downturn.
Stock photo for illustration only, not from the actual event
“Three years ago, there was still a significant amount of curiosity around the African opportunity. Today, LPs expect proof.”
Kola Aina
This disciplined approach resonated well with existing backers, as 70% of Fund I’s LPs returned for Fund II, including the European Bank for Reconstruction and Development, Norfund, and Ghana’s Ashesi University Foundation. African startups have collectively raised around $930 million across more than 200 deals this year, following $1.16 billion raised across 447 deals last year.
Source: TechCrunch
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