By Milcah Tanimu
Ventures Platform, a leading African venture capital firm, has announced that it has achieved returns on four out of its six investment cohorts. Established as a major player in the continent’s VC space, Ventures Platform has invested in over 90 companies since its inception.
In 2021, Ventures Platform launched its $40 million Ventures Platform Fund I, targeting startups in sectors such as Fintech, Logistics, Healthtech, and Cleantech. This initial funding round saw contributions from notable investors including Paystack CEO Shola Akinlade, the Nigeria Sovereign Investment Authority (NSIA), and global figures like Y Combinator CEO Michael Seibel and Adam Draper. The fund was subsequently increased to $46 million in 2022.
The VC firm has invested $19.6 million from this fund into various startups across Africa, according to its 2023 impact report. Of this, over half was directed towards pre-seed (51.49%) and seed stage startups (40.84%), with a smaller portion allocated to Pre-Series A startups (7.64%).
Ventures Platform focuses on startups addressing critical issues faced by low-income populations, such as limited access to healthcare, education, and financial services. The fund allocated $6.8 million to fintech startups, with notable investments also in SaaS ($2.8 million), B2B ($2 million), and Healthtech ($2.4 million). An additional $7.9 million was invested in sectors including logistics, autotech, insurtech, and cleantech.
Kola Aina, founding partner at Ventures Platform, highlighted the firm’s ongoing focus on fintech, citing opportunities in intra-African remittances. Despite a general downturn in Africa’s startup funding landscape, Aina believes the current environment presents a strategic advantage, allowing for a focus on strong unit economics rather than reliance on follow-on funding.
The firm has faced challenges related to the alignment of the fund’s lifespan with the long-term needs of its portfolio companies. To address this, Ventures Platform has provided follow-on funding and relies on data-driven decisions for investment strategies.
In July 2024, Ventures Platform reiterated its commitment to pan-African investment, having previously invested in startups outside Nigeria, such as Notto in Ghana, Union54 in Zambia, and Karcel in Egypt. Dotun Olowoporoku, managing partner at Ventures Platform, affirmed the firm’s aim to be a significant pan-African investor, despite its origins in Nigeria.
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