TLcom Capital secures $154m to back early-stage startups in Africa
TLDR
- TLcom Capital closes TIDE Africa II fund at $154 million to support early-stage startups
- Fund surpasses initial target of $70 million after two years of fundraising
- Notable investors in TIDE Africa II include European Investment Bank, Allianz, Visa Foundation
TLcom Capital, a Nairobi-based venture capital firm known for backing successful startups such as Vendease, Seamless HR, and uLesson, has hit the final close for TIDE Africa II, a $154 million fund dedicated to supporting early-stage startups. The fund initially reached its first close at $70 million in January 2022 and had anticipated a second close by the end of the same year.
The process of reaching and surpassing the funding target spanned over two years, with Maurizio Caio, founder and managing partner at TLcom Capital, attributing the delay to the need for adjustments in documentation due to sizable investments received.
TIDE Africa II represents a significant increase from TLcom's first fund, which closed at $71 million in February 2021. Notable investors in TIDE Africa II include the European Investment Bank (EIB), Allianz, DEG Impact's joint venture, AfricaGrow, Visa Foundation, and Bertelsmann.
Key Takeaways
Since 2022, startup funding in Africa has slowed, with 2023 seeing a total of $3.2 billion raised, the lowest since $2.1 billion in 2020, as global venture capital interest declined. The departure of 400 investors further exacerbated the situation. Despite this, local venture capital firms like TLcom have increased their activity. Amidst the funding winter, VC activity in Africa remains resilient, with major firms closing new funds. TLcom, traditionally focused on Sub-Saharan Africa, has expanded its scope to include North Africa, beginning with investments in Egyptian logistics startup ILLA and South African fintech littlefish. This strategic shift highlights the potential for growth in North African markets, despite prevailing challenges in the funding landscape.
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