Don't Be Afraid To Change What You Investors Willing To Invest In Africa

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There are many reasons to invest in Africa, investors should know that the continent will test their patience. The African markets can be unstable and time horizons might not always work. Even the most sophisticated businesses might have to review their business plans, like Nestle did last year in 21 African countries. Many countries also have deficits. These gaps will need to be filled by bold and resourceful investors who can bring greater prosperity to Africa.

The $71 million TLcom Capital's TIDE Africa Fund

The latest venture of TLcom Capital closed at $71 million. The fund's predecessor closed in January of last year. Five million dollars were contributed by Sango Capital, Bio, CDC Group and TLcom. The fund's first investment was in a dozen tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will focus on East African fintech companies. The investment firm has offices in Kenya and Nigeria. TLcom's portfolio comprises Twiga Foods and Andela as along with uLesson and Kobo360. The investment firm invests between $500,000 and $10 million in each company.

TLcom is a Nairobi-based VC firm with more than $200 million in under management. Omobola Johnson is the company's Managing Partner. He has helped create more than a dozen technology companies in Africa, including Twiga Foods, and a logistics company for trucking. Omobola Johnson (a former minister of technology and communication in Nigeria) is part of the investment firm's team.

TIDE Africa is an equity fund that invests into growth-stage tech companies in SSA. It will invest between $500,000 and $10 million in companies that are at the beginning of their development, with an emphasis on Series A and B rounds. While the fund will concentrate on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. In Kenya, for example, TIDE has invested in five digital companies with high growth.

Omidyar Network's $71 million TEEP Fund

The Omidyar Network is a US-based charitable investment firm that hopes to invest between $100-$200 million in India in the next five years. The fund was created by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian businesses since 2010. The firm invests in India's consumer internet, entrepreneurship , as well as financial inclusion. It also invests in property rights, government transparency as well as government transparency companies that have social impact.

The Omidyar Network's TEEP Fund invests in projects that improve access to government information. It seeks to identify non-profit organizations that utilize technology in creating public information portals and tools that are accessible to citizens. The network believes that having access to government information improves public knowledge about government processes and creates an active society that is accountable to government officials. Imaginable Futures will use the funds to invest in non-profit and for-profit organisations that focus on education and healthcare.

Raise

If you're planning to raise money for your African startup, you should consider a firm with an African-centric focus. One of these companies is TLcom Capital, a fund management company based in London. Its African investments have caught the attention of angel investors, and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new fund worth $71 million to invest in 12 startups prior to reaching profitability.

The capital market is becoming increasingly aware of the potential appeal of Africa venture capital. Private investors are increasingly recognizing the potential of Africa's development and don't need to be restricted by institutional investors. This means that raising money is much easier than in the past. Raise helps businesses to close deals in half the time and is also free of the constraints of institutions. There is no single method to raise funds for African investors.

Understanding how investors view African investments is the first step. While YC hype appeals to a lot of investors, it's important that you consider more than the Silicon Valley giant and Agenda 2063 of the African Union. African companies are now searching for the YC signal to reach out to US investors. A Tunisian venture capitalist Kyane Kassiri recently talked about the importance of the YC signal when seeking funds for African investors.

GetEquity

Established in July 2021, GetEquity is an investment platform in Nigeria aimed at democratizing startup funding in Africa. It aims to make funding African startups more accessible to everyone by offering capital raising tools and world-class capital to all startups. The platform has already helped startups raise more than $150,000 from a variety of investors. Additionally, it provides a secondary market that allows investors to purchase other investors' tokens.

Contrary to equity crowdfunding, investing in early-stage companies is a very exclusive activity. It is generally only accessible to the most prominent individual angel investors, capital institutions and syndicates. It isn't often accessible to family and friends. New companies are trying to change this unwelcome arrangement by making it easier to obtain capital for startups in Africa. The platform is accessible on iOS and Android devices and is free to use.

GetEquity's blockchain-based wallet is now accessible to investors. This makes it possible to invest into startups in Africa. Investors can invest as little as $10 in African startups with the help of crypto funds. Although this is a small amount, it's still substantial when compared to traditional equity financing. After the recent withdrawal from Paystack by Spark Capital GetEquity has become a strong ecosystem for investors from Africa looking to invest in Africa.

Bamboo

Bamboo's first hurdle is convincing young Africans to invest in the platform. In the past, investors in Africa were limited to a limited number of options which included foreign direct investments (FDI) and crowdfunding and the legacy finance companies. In fact, only about three-quarters of the population has invested in any platform. The company has announced that it is expanding into other African countries, and plans to launch in Ghana by April 2021. As of this writing more than 50,000 Ghanaians have signed up for the waitlist.

Africans have limited alternatives to save money. With inflation at around 16% the currency is declining against the dollar. It is possible to invest dollars to help safeguard against inflation as well as the possibility of a declining dollar. Bamboo, which has seen rapid growth in the last two business funding years, is a platform that lets Africans invest in U.S. stock options. It plans to launch in Ghana in April 2021, and has more than 50,000 people waiting to be able to access.

Investors can fund their wallets beginning at $20 once they are registered. Funding can be made through credit cards, bank transfer, and credit cards. Then, they can trade ETFs and stocks and receive market updates. Bamboo's platform is bank-level secure and therefore anyone in Africa is able to use it if they have a valid Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisors.

Chaka

There are many reasons why Nigeria is a thriving hub for legitimate investment and business. The film and entertainment industry is among the largest in the world and the country's expanding fintech sector has led to an explosion in startup formation and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's modern trends will ultimately open doors to a brand new group of investors. In addition to the Aboyeji investment, Chaka has also secured seed-funds from the Microtraction fund that is run by Y Combinator CEO Michael Seibel.

The deteriorating US-China relationship has increased Beijing's interest in African investments. Rising anti-China sentiments and the trade war have increased the appeal of investors to invest in African businesses outside of the US. While Africa has many developing economies, the majority of markets are not large enough for venture-sized businesses. African entrepreneurs should be prepared to adopt an expansion mindset and create a coherent expansion story.

The Central Securities Clearing System oversees the Nigerian Stock Exchange, making it a secure and safe platform to invest in African stocks. Chaka is free to join, and you will receive the 0.5 percent commission per trade. Withdrawals of cash available can take up to 12 hours. Withdrawals of sold shares on the other hand can take as long as three days. Both cases are handled locally.

Rise

The rising number of investors eager to invest in Africa is a good thing for Africa. The country's economy is stable and its governance is sound, which draws international investors. This has led to an increase in living standards in Africa. Africa is still a risky investment area. Investors should be cautious and do their due diligence. There are many opportunities to invest in Africa. However Africa needs to improve its offerings to attract foreign capital. In the next few years, African governments should work to create more business-friendly environments and improve the business climate.

The United States is more willing to invest in Africa's economies through foreign direct investment. U.S. governments assisted Senegal in advancing a major health financing facility. The U.S. government also supported investment in new technology in Africa and assisted pharmacies in Nigeria and Kenya have access to high-quality medicines. This investment could lead to jobs and create long-term partnerships between the U.S.A and Africa.

While there are several opportunities available in the African stock market It is essential to understand the market and conduct proper due diligence to make sure that you don't lose money. If you're a smaller investor, it's a good idea to invest in an exchange-traded fund (ETFs) that track a wide range of Sub-Saharan African businesses. American depositary receipts (ADRs) which are issued by the United States, make it easy to trade African stocks on the U.S. stock exchange.