Ventures Platform Secures $64 Million for Second Africa-Focused Fund

Lagos-based Ventures Platform has raised $64 million towards its second fund, aiming for a final close of $75 million, to invest in early-stage startups across the African continent.

This funding round notably includes the first-ever investment in a venture capital fund by the Nigerian government, through its Investment in Digital and Creative Enterprises (iDICE) program, signaling increased local support for the country’s rapidly growing startup ecosystem – which already boasts the largest number of unicorns on the continent. Other limited partners include IFC, British International Investment (BII), Proparco, Standard Bank, MSMEDA, AfricaGrow, Alder Tree Investment, and former Y Combinator CEO Michael Seibel.

Founded in 2016, Ventures Platform has established a reputation for identifying promising startups early on, with previous investments including fintech unicorns Moniepoint and Paystack, demonstrating a track record of backing companies that expand access to financial services. The firm launched its first institutional fund, a $46 million vehicle, in 2022, focusing on pre-seed and seed rounds, and will now also pursue Series A investments, seeking larger ownership stakes as Series A funding becomes more challenging to secure. Ventures Platform has already funded over 90 startups across Africa, concentrating on “painkiller” businesses in sectors like fintech, health tech, agtech, edtech, and AI.

“If you’re a global capital allocator looking for true diversification, Africa is the place,” said Ventures Platform founding partner Kola Aina. “By 2050, one in four humans will be African. Our GDP growth rate is double that of the U.S., and yet most of the value is still offline.” The firm plans to expand its presence in Francophone West Africa and North Africa, building on existing investments in those regions. Ventures Platform expects to continue attracting both local and international investors, citing a strong track record of returns from previous funds, as detailed on the IFC website.

Aina stated the firm will continue to seek opportunities for “non-consensus alpha” in the region, despite a recent slowdown in overall funding for African tech companies.