The International Finance Corporation (IFC) has made a significant commitment of up to $6 million in equity investment to the Ventures Platform Pan-African Fund II (VP II). This venture capital fund is dedicated to supporting early-stage technology-enabled startups across Africa, with the primary goal of enhancing access to seed-stage financing and providing value creation services for digital entrepreneurs throughout the continent.
The management of VP II will be handled by Ventures Platform GP Limited, a firm based in Nigeria, which is led by experienced partners Kola Aina and Dotun Olowoporoku. While the fund will strategically deploy capital across various African markets, Nigeria will remain a central focus of its investment efforts.
This investment from the IFC aligns with its broader strategy to strengthen the digital entrepreneurship ecosystem in Africa. In addition to providing direct capital, the initiative aims to stimulate the growth of local venture capital markets through demonstration effects, enabling frameworks, and capacity-building initiatives.
Founded in 2016 by Kola Aina, Ventures Platform has quickly established itself as a leading early-stage venture capital firm that supports innovative startups in Africa. The firm successfully closed its first fund (Fund I) at $40 million in December 2021, attracting a diverse array of Limited Partners (LPs), including high-net-worth individuals (HNWIs) and prominent African investors. The second close in 2022 increased the fund size to $46 million, with additional support from institutional investors, commercial banks, and development finance institutions, including the IFC, British International Investment (BII), Proparco, and AfricaGrow.
VP II is set to invest in sectors that are crucial to Africa’s digital transformation, such as fintech, insurtech, health tech, edtech, agritech, enterprise SaaS, and digital infrastructure. Over the years, Ventures Platform has positioned itself as a strategic partner for international investors looking to gain exposure to Africa’s emerging markets.
Since its inception, Ventures Platform has invested in over 90 companies, including notable startups like Piggyvest, PayHippo, Mono, SeamlessHR, Tizeti, and Printivo. The fund’s investment strategy primarily focuses on pre-seed and seed-stage startups, with an increasing allocation towards Series A rounds. Additionally, Ventures Platform has begun to offer follow-on capital to support portfolio companies as they scale beyond Series A.
From its $46 million Fund I, Ventures Platform has already deployed $19.6 million across various startups, with the majority of funding directed towards pre-seed (51.49%) and seed-stage (40.84%) companies. A smaller portion (7.64%) has been allocated to pre-Series A startups. The fintech sector has been a standout, securing $6.8 million in funding, followed by SaaS ($2.8 million), health tech ($2.4 million), and B2B startups ($2 million). Additional investments totaling $7.9 million have been made in logistics, autotech, insurtech, and cleantech ventures.
Despite a recent slowdown in Africa’s venture capital landscape, Ventures Platform remains optimistic about investment opportunities, particularly in intra-African remittances and businesses with strong unit economics. According to Kola Aina, the current market downturn presents an ideal environment for strategic investments, as it reduces excessive speculation and rewards fundamentally sound business models.
While Ventures Platform initially focused on Nigerian startups, its recent expansion strategy includes investments in startups across South Africa, Zambia, and Egypt. The firm is also aware of the challenge of balancing the fund’s lifespan with the long-term needs of high-potential startups, an issue it aims to address through targeted follow-on funding.
The International Finance Corporation (IFC) is increasingly showcasing its leadership in fostering the growth of African venture capital. Its recent investment activities highlight a strategic focus on key areas, including a $6 million commitment to Flat6Labs’ new $85 million Africa Seed Fund, which supports early-stage companies. Additionally, the IFC invested $6 million in equity into Lofty Alpha, a VC fund targeting early-stage tech startups across the continent as part of its $50 million round.
The IFC has also extended a $5 million commitment to Equator Africa Fund I, marking its strategic entry into the growing climate tech venture capital space. Furthermore, the IFC acted as a limited partner in P1 Ventures’ first institutional fund ($50 million) and Janngo Capital’s second fund (€73 million/$78 million), which is notable for its commitment to diverse founders and underserved regions. As global capital markets tighten, the IFC’s investment reinforces the increasing importance of local venture capital funds in bridging the funding gap for African startups.
