Verod-Kepple closes first fund at $60m to support startups in Africa
TLDR
- Verod-Kepple Africa Ventures (VKAV) secures $60 million for its first fund, attracting support from prominent investors like Nigeria’s SCM Capital and Taiyo Holdings.
- The funding rounds in 2022 and last year, backed by Japanese institutional players, demonstrate increased confidence in Africa's venture capital landscape.
- VKAV aims to bridge funding gaps for series A and B startups in Africa, addressing limited local capital availability for growth-stage companies.
Verod-Kepple Africa Ventures (VKAV) has secured $60 million for its first fund, paving the way for investments in up to 21 growth-stage companies across the continent. The pan-African VC reached this milestone with fresh backing from prominent investors including Nigeria’s SCM Capital (formerly Sterling Capital Markets Limited), Taiyo Holdings, and C2C Global Education Japan.
This recent capital injection follows previous rounds in 2022 and last year, supported by various investors, notably Japanese institutional players like SBI Holdings, Toyota Tsusho Corporation, and Sumitomo Mitsui Trust Bank.
These investments highlight growing confidence in Africa's venture capital landscape despite ongoing challenges, allowing VKAV to fill crucial funding gaps for series A and B startups amidst limited local capital availability for growth-stage companies.
Key Takeaways
One of the most significant trends in African tech in recent years has been the notable increase in investment from Asian powerhouses, particularly China. This surge in interest has expanded the funding options for African startups, which had traditionally relied on Silicon Valley and European venture capital firms. However, this trend is now diversifying further with growing interest from Japan, where a mix of early-stage and corporate venture capital investors are exploring opportunities on the continent. Kepple Africa Ventures boasts a portfolio of more than 100 African companies and manages the $100 million Verod-Kepple Africa Ventures fund. Uncovered Fund, founded in Tokyo in 2019, has invested in 26 African startup companies. Notably, blue-chip Japanese companies are also showing increasing interest: Auto giant Toyota via Mobility 54—a VC unit dedicated to investing in African mobility startups—backed the now-defunct Sendy in a $20 million Series B round. Manufacturing giant Yamaha also participated in a $7 million funding round for Nigeria’s MAX.ng.
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