Ventures Platform goes bigger — and broader — with its second Africa fund
Ventures Platform, a Pan-African venture capital firm headquartered in Nigeria, has closed an oversubscribed $83 million second fund, expanding its geographic focus beyond its home market as it responds to a tougher, more selective fundraising environment. The firm will back early-stage founders across fintech, healthcare, SaaS and other sectors, with a particular interest in how artificial intelligence can lower the cost of serving African markets and address labour shortages, according to founding partner Kola Aina.
The new fund follows a $46 million debut fund raised in 2022, which focused mainly on pre-seed and seed rounds in Nigeria; Fund II has already deployed capital to five companies in Kenya, South Africa and Egypt, with cheque sizes of up to $3 million to be invested over three to four years. The 18-month fundraising process reflected greater scrutiny from limited partners, who Aina said are now demanding harder evidence of returns, capital efficiency and governance rather than simply backing pan-African positioning. This caution comes against a broader slowdown in the region, with African startups raising around $930 million across more than 200 deals so far this year, down from $1.16 billion across 447 deals last year.
- Ventures Platform raises $83m oversubscribed second Africa-focused VC fund
- Firm expands beyond Nigeria into Kenya, South Africa and Egypt
- African startup funding has fallen amid tougher, more selective investor market
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Venture capital is investment in young companies that could grow quickly, usually in exchange for a stake in the business. Ventures Platform is a Nigeria-based investment firm that backed early-stage companies mainly in Nigeria through its first fund, raised in 2022.
The firm’s second fund is intended to support founders in several African markets and across areas such as financial services, healthcare and business software. Its founding partner, Kola Aina, has also pointed to possible uses of artificial intelligence, including reducing the cost of providing services and easing labour shortages.
The fund comes as investors have become more cautious about backing start-ups, and African companies have attracted less funding than in the previous year. Investors, known as limited partners, are asking venture firms for clearer evidence that their investments can produce returns and that companies are well run.
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