Japan's AAIC Africa healthcare fund hits $87m after new backing
AAIC Investment has expanded its support for the Africa Healthcare Fund 2 (AHF2), increasing the total size of its two funds to $87 million. AAIC, headquartered in Singapore and established in 2013, is the fund management arm of AAIC Holdings.
The firm began assisting the corporate venture capital (CVC) arms of Japanese corporations in 2014 and launched the first Africa-focused Japanese fund, the Africa Healthcare Fund 1 (AHF1), in 2017. In 2022, it introduced AHF2, which achieved its first close at the end of March 2022. The Development Bank of Japan (DBJ), QR Investment, TOPPAN Holdings, and other investors have now joined the fund. AAIC Investment has invested in 45 companies through AHF1 and AHF2.
Hiroki Ishida, director at AAIC's Kenya office, stated, "The enthusiasm for investing in Africa from Japan remains strong. I believe that the increased involvement of corporate entities, such as the LP, in this case, will lead to a growth in exit opportunities, addressing a key current challenge for African VC."
Key Takeaways
Recently, both startups and venture capital firms globally have been facing challenging circumstances in terms of fundraising. In light of these conditions, AAIC’s second Fund II close comes as a ray of hope, especially given the monumental healthcare funding gap in Africa. The Institute for Health Metrics and Evaluation highlights a substantial annual healthcare spending deficit of $370 billion in frontier countries, encompassing African nations, to achieve the Sustainable Development Goal target by 2030. In contrast, the Global Impact Investment Network (GIIN) reveals that Africa, despite harboring 23% of the world's disease burden and representing 16% of the global population, receives merely 1.6% of the estimated $500 billion in worldwide social-impact investments annually. This disparity underscores the critical need for increased investment in healthcare in Africa to bridge the existing gap and effectively address the region's significant health challenges.
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