3IF Ventures reaches first close for insurance fund
The fund is co-anchored by FSD Africa Investments and ZEP-RE, a pan-African reinsurer.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
3IF Ventures, a venture capital fund dedicated to Africa’s insurance startup ecosystem, has announced the first close of the Inclusive Insurance Investment Fund at $12 million. The fund is co-anchored by FSD Africa Investments (FSDAi) and ZEP-RE, a pan-African reinsurer. The fund will provide equity capital from pre-seed to Series B to early-stage businesses across Africa.
The fund, which targets a final close of $30 million, plans approximately 15-20 portfolio investments. 3IF Ventures will also operate a technical assistance facility sized at approximately 20% of total fund commitments.
“Reaching first close with FSD Africa Investments and ZEP-RE on the same cap table is a market signal: impact and private capital are now investing in the same insurance technology pioneers. Africa’s protection gap is the most under-served commercial opportunity of the decade, closing it requires patient capital, local risk capacity and industry-grade portfolio support, working in concert. With a pre-qualified pipeline of 15 insurance ventures across 10 African markets, we are ready to deploy capital and look forward to engaging with strategic private and public partners as we enter the next stage of our growth,” Anthony Chaillet and Mario Wilhelm, general partners of 3IF Ventures, said in a joint statement.
“FSDAi’s investment in 3IF Ventures reflects our conviction that the insurtech sector is ready to scale – built on a pipeline of 135 early-stage businesses supported through BimaLab. As the first investment vehicle dedicated to inclusive insurance in Africa, 3IF Ventures brings institutional rigour to a segment that has long lacked it. This first close proves that when sector expertise, the right capital structure and the right partners align, the protection gap becomes an investable proposition,” commented Anne-Marie Chidzero, chief investment officer of FSD Africa Investments.
“The fund aligns with our mission to deliver sustainable and innovative (re)insurance solutions through collaboration with private, public and development sector partners to close the protection gap and promote economic growth. The fund will assist in bringing together like-minded partners and capital providers to support technology enabled insurance businesses that help in closing the protection gap across Africa. Beyond the capital injection, ZEP-RE will offer further support to the investee companies through its technical experience in the (re)insurance ecosystem such as product design and leverage off its existing networks among primary insurers and regulators to provide underwriting capacity and an enabling regulatory environment for investees to achieve shared success across the continent,” said Hope Murera, managing director and Group CEO of ZEP-RE.
Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. The Dealmaker’s Log is available to all Premium subscribers, with the latest edition delivered immediately upon subscribing – subscribe now.