Launch Africa Ventures Fund I closes at over $36m
Early-stage pan-African venture capital fund Launch Africa Ventures announced a US$36.3 million close of its inaugural fund, Launch Africa Ventures Fund 1, with investments from 238 retail and institutional investors in 40 countries.
Following the successful closure, Fund 1 announced its 100th investment at the end of May 2022, with $24 million invested in 108 early-stage tech and tech-enabled companies across 20 African countries.
Launch Africa was established in July 2020, at the height of Covid-19, and had its first close in September 2020. The pandemic created a landscape that encouraged innovation and technological adoption at a speed once thought impossible, triggering business opportunities for African start-ups across technology industry verticals.
As a result, companies in the Launch Africa portfolio saw accelerated revenue growth and network effects during this period with the adoption of digital financial services, open banking, telemedicine, remote learning, data analytics, artificial intelligence (AI), digital identity management, and ecommerce across Africa.
Launch Africa is the brainchild of Zachariah George and Janade du Plessis.
“We assist the African founders of early-stage tech and tech-enabled companies to focus on what the continent needs right now – the rapid growth of businesses solving real-world problems combined with the creation of high-value jobs in sustainable ventures. We are proud to have helped many founders close their seed funding rounds in 4-6 weeks, notably faster than the 4-6 months it typically takes for early-stage founders to close rounds in Africa,” says George.
Launch Africa also facilitates co-investment by its limited partners (LPs) through sharing due diligence, waiving fees and absorbing charges for LPs in the seed and pre-series A investments led by the fund. To date, Launch Africa LPs have co-invested in excess of $14 million in Launch Africa portfolio companies.
“The Launch Africa team works with founders and expert advisors to fast-track exit opportunities for investors,” Du Plessis says. “Providing our exit strategy during these challenging times instills investor confidence and brings significant benefits to the African tech ecosystem.”
CommerzVentures, a German fintech-focused venture capital firm, is one of the lead institutional investors in Launch Africa Ventures Fund 1. As a sector specialist, CommerzVentures offers a comprehensive network of partners, decision-makers and investors within fintech and financial services across the European Union, as well as actionable intelligence and advisory.
“We are pleased to partner with Launch Africa Ventures to invest in some of the most exciting fintech investment opportunities in Africa,” says CommerzVentures managing partner, Patrick Meisberger. “Launch Africa provides a diversification of risk, returns, and impact by offering access to early-stage, post-revenue companies across multiple market verticals and geographic regions.”
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