Lagos-based Ventures Platform, a prominent early-stage investment firm recognized for its strategic foresight within Africa’s dynamic technology landscape, has successfully closed $64 million for its second fund, nearing its target of $75 million. This significant capital infusion underscores a growing confidence in the continent’s burgeoning digital economy, attracting a diverse consortium of investors, including an unprecedented commitment from the Nigerian government, marking a pivotal moment for both the firm and the broader African venture capital ecosystem.

A Landmark Investment in Africa’s Tech Future

The latest funding round represents a substantial endorsement of Ventures Platform’s investment thesis and its proven track record. Founding partner Kola Aina revealed that the capital raise has been met with enthusiastic support from a wide array of limited partners (LPs). Notably, this round includes the Nigerian government, through its innovative Investment in Digital and Creative Enterprises (iDICE) program, marking a historic first for the nation’s government in directly investing in a venture capital fund. This move is particularly impactful given Nigeria’s position as a powerhouse of innovation, boasting the largest concentration of startup unicorns across Africa. The iDICE program, a federal initiative designed to foster growth in Nigeria’s digital and creative industries, aims to empower young entrepreneurs and innovators by providing critical access to finance and mentorship. Its participation signals a strategic governmental recognition of the private sector’s role in driving economic diversification and job creation through technology.

Beyond the domestic landmark, the fund has also attracted a robust international and institutional backing. Among the esteemed LPs are the International Finance Corporation (IFC), British International Investment (BII), Proparco, Standard Bank, MSMEDA, and AfricaGrow. These development finance institutions and commercial banks bring not only capital but also strategic expertise and a long-term view on sustainable development in emerging markets. Further enhancing the fund’s global reach, European family offices, such as Alder Tree Investment, and prominent global figures like Michael Seibel, former CEO of Y Combinator, have also contributed. A testament to Ventures Platform’s sustained performance and trusted relationships, a remarkable 70% of the investors from its preceding fund chose to re-invest, highlighting strong LP satisfaction and belief in the firm’s future trajectory.

Ventures Platform’s Strategic Evolution and Impact

Established in 2016, Ventures Platform quickly carved out a reputation for identifying and nurturing high-potential startups in Nigeria’s competitive tech scene. Its initial institutional fund, a $46 million vehicle launched in 2022, primarily focused on pre-seed and seed-stage investments, laying the groundwork for many of Africa’s future tech leaders. The firm’s deep understanding of local markets and its proactive approach to supporting founders have been central to its success.

With this new fund, Ventures Platform is set to broaden its investment scope, strategically venturing into Series A funding rounds. This expansion is coupled with a renewed commitment to "investing with more conviction" and pursuing larger ownership stakes in its portfolio companies. This strategic shift addresses a critical funding gap in the African tech ecosystem. In recent years, securing Series A funding has become increasingly challenging for African startups, partly due to a global economic slowdown and a noticeable pullback from some Silicon Valley-based firms that had previously been active investors in the region. By stepping up its Series A participation, Ventures Platform is poised to provide essential follow-on capital, enabling promising startups to scale their operations, expand their market reach, and further solidify their product-market fit. This move is a lifeline for many founders who might otherwise struggle to bridge the gap between early-stage development and sustainable growth.

Ventures Platform’s investment philosophy centers on identifying "painkiller" businesses—companies that address fundamental needs and solve pervasive problems for non-consumption. These are ventures that create markets where services were previously inaccessible or inadequate, fundamentally improving people’s lives and driving economic inclusion. This strategy is particularly relevant in Africa, where significant opportunities exist across various sectors due to large, underserved populations and nascent digital infrastructure. The firm targets sectors such as fintech, healthtech, agritech, edtech, and artificial intelligence, focusing on innovations that bridge critical service gaps and unlock new value.

Expanding Horizons: A Pan-African Vision

While its roots are firmly planted in Nigeria, Ventures Platform has always harbored a pan-African ambition. The firm has already begun to establish a presence and make strategic investments in other key regions, including Francophone West Africa and North Africa. These regions, often overlooked by some international investors, present unique market dynamics and significant untapped potential. By moving into these areas, Ventures Platform aims to gain earlier access to promising deals, leveraging its expertise in local market navigation and its network to identify and support the next generation of African innovators. This geographic diversification not only expands the firm’s reach but also contributes to the broader development of a more interconnected and resilient African tech ecosystem. The move into Francophone West Africa, for example, opens doors to markets with distinct regulatory environments and cultural nuances, requiring a nuanced approach to investment and localized support for startups. Similarly, North Africa, with its strong ties to European and Middle Eastern markets, offers different pathways for growth and cross-border collaboration.

The firm’s portfolio showcases its commitment to impactful innovation, featuring over 90 startups across the continent. Prominent examples include Moniepoint, a Visa-backed unicorn that has revolutionized small business banking and agent networks, driving financial inclusion to the most remote parts of Nigeria. Another success story is Paystack, acquired by Stripe, which transformed online payments for countless small businesses, enabling them to transact digitally beyond their immediate vicinities. Kola Aina emphasizes the market-creating innovation these companies represent, stating, "Many small businesses couldn’t sell beyond their immediate vicinity before Paystack because they couldn’t accept online payments. Moniepoint, on the other hand, has driven financial inclusion to the nooks and crannies of this country. That’s market creating innovation."

Other notable companies within Ventures Platform’s portfolio include LemFi, a Left Lane-backed remittance app facilitating cross-border payments; SeamlessHR, supported by the Gates Foundation, which is streamlining human resources for African businesses; OmniRetail, a Norfund-backed platform shaking up Africa’s B2B e-commerce market; Raenest, a QED-backed fintech innovating financial services; and Remedial Health, a healthtech company improving pharmaceutical supply chains. These diverse investments collectively illustrate the firm’s strategy of addressing fundamental market inefficiencies and building scalable solutions for millions of Africans.

Navigating Headwinds and Charting a Long-Term Course

Despite the accelerating pace of innovation, the African tech ecosystem faces ongoing challenges, particularly concerning liquidity events and exits. While over $10 billion has been invested in African tech since 2015, stakeholders are increasingly vocal about the relative scarcity of successful exits, which are crucial for returning capital to LPs and demonstrating the viability of the ecosystem. This reality, coupled with a tough global fundraising climate over the past two years, has made securing capital particularly difficult for many emerging venture capital managers across the continent. Africa’s funding landscape has seen a significant contraction, dropping from approximately $5 billion in 2021 to around $2 billion last year, reflecting broader market corrections and increased investor caution.

Against this backdrop, Ventures Platform’s ability to attract both local and international LPs for its second fund is a testament to its robust performance and strategic communication. Kola Aina attributes this success to a deep understanding among LPs of how venture ecosystems mature over time. "We have LPs who understand how venture ecosystems in other markets have developed and know we’ll get there in the long term," Aina explains. Furthermore, the firm’s practice of "recycling capital from our prior syndicates" has played a crucial role. Ventures Platform has demonstrated an impressive track record of returning capital, having done so for four out of its six vintages, including five angel syndicates between 2016 and 2022. This ability to generate early returns provides tangible evidence of performance, which is highly valued by investors. The firm also asserts that its first fund stands among the top global performers for its vintage year based on key metrics like Total Value to Paid-In Capital (TVPI) and Internal Rate of Return (IRR), further cementing its credibility.

Aina remains steadfast in his conviction about Africa’s long-term potential, despite current market fluctuations. He characterizes the continent as the "purest asymmetric play for non-consensus alpha," a venture capital term signifying high-risk, high-reward opportunities that are not yet widely recognized by the broader market. This perspective underscores the belief that patient capital, combined with deep local context, can unlock extraordinary returns in Africa. He passionately argues for Africa’s strategic importance for global capital allocators seeking true diversification. "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 opportunity is huge if you have the patience and the local context," Aina asserts. This demographic dividend, coupled with accelerating urbanization and increasing digital penetration, paints a compelling picture of future growth.

A Beacon for Future Investment

Ventures Platform’s successful $64 million fundraise is more than just a financial milestone; it is a powerful signal to the global investment community about the enduring promise of Africa’s tech sector. By attracting a diverse group of investors, including the Nigerian government’s pioneering involvement, the firm is not only securing capital for the next wave of innovators but also contributing to the institutionalization and maturation of the continent’s venture capital landscape. As Ventures Platform expands its reach and deepens its investment strategy, it reinforces its position as a critical enabler of economic growth and digital transformation across Africa. The firm’s commitment to addressing fundamental societal challenges through technology, coupled with its proven ability to generate returns, positions it as a key player in shaping the continent’s vibrant and increasingly influential digital future.