Ventures Platform’s $64M Raise: Unlocking Africa’s Startup Potential
Discover how Ventures Platform’s $64 million fundraise is reshaping Africa’s venture capital scene, fueling innovation, and bridging funding gaps with strategic Series A investments across the continent.
Key Takeaways
- Ventures Platform raised $64 million toward a $75 million second fund
- Nigerian government invests for the first time in an African VC fund
- Fund II expands to Series A rounds with larger ownership stakes
- Focus on ‘painkiller’ startups solving access gaps across fintech, healthtech, and more
- Despite funding slowdowns, Ventures Platform attracts local and global investors
- Africa offers a high-risk, high-reward venture landscape with long-term growth potential
In the heart of Lagos, Ventures Platform has quietly become a powerhouse in Africa’s startup ecosystem. Since its founding in 2016, this early-stage investor has raised $64 million toward its second fund, aiming for a $75 million close—a clear sign of growing confidence in African innovation. The Nigerian government’s debut investment through its iDICE program marks a milestone, signaling institutional belief in the continent’s tech future.
Ventures Platform’s strategy is evolving. While its first $46 million fund focused on pre-seed and seed rounds, the new fund embraces Series A investments with more conviction and larger stakes. This shift comes at a crucial time, as African startups face tougher funding conditions globally.
This article unpacks Ventures Platform’s journey, its role in Africa’s venture capital landscape, and why this $64 million raise is more than just numbers—it’s a beacon for entrepreneurs and investors alike, illuminating the continent’s vast untapped potential.
Raising $64 Million
Imagine raising $64 million in a market where venture capital is still finding its footing. That’s exactly what Ventures Platform achieved for its second fund, targeting a final close of $75 million. This isn’t just a number—it’s a statement. The Nigerian government’s first-ever investment in a VC fund through its iDICE program adds a historic layer to this milestone. It signals a shift from skepticism to active participation by local institutions in Africa’s tech ecosystem.
But the story doesn’t stop there. International heavyweights like IFC, British International Investment, and even former Y Combinator CEO Michael Seibel are backing this fund. Seventy percent of investors from the previous fund returned, underscoring trust in Ventures Platform’s vision and execution. This blend of local and global capital is rare and powerful, especially in a climate where many emerging managers struggle to raise funds.
This $64 million raise is more than just capital—it’s a vote of confidence in Africa’s startups and the firm’s ability to spot winners early. It’s a financial bridge connecting ideas to markets, dreams to reality.
Expanding to Series A
Ventures Platform’s first fund, a $46 million vehicle launched in 2022, focused on pre-seed and seed rounds—those early bets on raw ideas and passionate founders. But the second fund marks a strategic pivot. Now, the firm is diving into Series A investments, where startups have proven concepts and need fuel to scale.
Why does this matter? Series A rounds have become tougher to secure for African startups, especially after Silicon Valley’s pullback. Ventures Platform stepping up means founders can breathe easier knowing there’s a committed partner ready to invest with “more conviction” and seek larger ownership stakes. It’s like moving from a cautious handshake to a firm grip.
This shift also reflects maturity in Africa’s venture ecosystem. Startups are graduating from the idea stage to growth engines, and investors like Ventures Platform are evolving alongside them. The firm’s presence in Francophone West Africa and North Africa further broadens its reach, tapping into new pools of innovation and opportunity.
Backing Market-Creating Startups
Not all startups chase flashy tech or quick wins. Ventures Platform zeroes in on “painkiller” businesses—those solving real problems where services barely exist. Think fintechs like Moniepoint and Paystack, which unlocked online payments and banking for small businesses previously stuck in cash-only economies.
Kola Aina, the founding partner, calls this “market creating innovation.” It’s about building bridges where none existed, bringing financial inclusion to the nooks and crannies of Nigeria and beyond. Other portfolio gems include remittance app LemFi and healthtech firm Remedial Health, each addressing critical gaps in their sectors.
This approach challenges the myth that African startups are just copycats or niche players. Instead, they’re pioneers crafting solutions for millions who’ve been offline or underserved. Ventures Platform’s investments reflect a belief that true innovation often means creating entirely new markets, not just competing in existing ones.
Navigating Funding Slowdowns
Africa’s tech funding took a hit, dropping from $5 billion in 2021 to about $2 billion recently. That’s a cold shower for many startups and VCs alike. Yet, Ventures Platform managed to attract both local and international limited partners despite this chill.
How? Partly through a track record of returning capital—four out of six investment cycles since 2016 have yielded returns. This performance ranks among the top globally for its vintage year, a rare feat in emerging markets. Investors see Ventures Platform as a steady ship amid turbulent seas.
This resilience debunks the myth that African venture capital is too risky or immature. Instead, it highlights the importance of patience, local knowledge, and disciplined investing. Ventures Platform’s ability to recycle capital and maintain investor confidence is a blueprint for others navigating the continent’s funding ebbs and flows.
Africa’s Long-Term Promise
Here’s the big picture: by 2050, one in four people on Earth will be African. The continent’s GDP growth rate is double that of the U.S., yet much of its economic value remains offline. This gap is a playground for investors seeking asymmetric returns—high risk, yes, but with outsized potential rewards.
Kola Aina calls Africa the “purest asymmetric play for non-consensus alpha.” In plain English, it means betting on Africa is like spotting a diamond in the rough before the world catches on. For global capital allocators craving true diversification, Africa offers a unique chance to tap into growth that’s both demographic and economic.
But it’s not a sprint. Success demands patience and deep local context. Ventures Platform’s journey exemplifies this long game, blending global capital with homegrown insight to unlock Africa’s startup future, one investment at a time.
Long Story Short
Ventures Platform’s $64 million raise is a vivid testament to Africa’s rising stature in the global venture capital arena. By securing backing from both local heavyweights like the Nigerian government and international players such as IFC and former Y Combinator CEO Michael Seibel, the firm is bridging worlds and capital flows. This blend of local insight and global trust is crucial in a market where exits remain scarce and funding has tightened. For founders, the fund’s pivot to Series A rounds offers a lifeline amid a global pullback, promising deeper pockets and stronger partnerships. For investors, Ventures Platform’s track record of returning capital and top-tier fund performance offers reassurance amid uncertainty. Africa’s story is one of patience and vision. With a booming population and GDP growth outpacing the U.S., the continent remains a “purest asymmetric play” for those willing to look beyond the usual markets. Ventures Platform is not just investing in startups—it’s investing in Africa’s future, one breakthrough at a time.