$43 M first close of new pan-African seed fund announced by LoftyInc Capital
The new LoftyInc Alpha Fund, a late-seed focused investment vehicle that will propel growth for Africa’s most promising tech startups across key geographies like Nigeria, Egypt, Kenya, and Francophone Africa, has seen its first close of US$43 million, according to leading early-stage African venture capital firm LoftyInc Capital Management.
In 2017, LoftyInc Allied Partners Limited (LAPL) and Marsha Wulff co-founded LoftyInc Capital, a pan-African venture capital firm. By founding regional tech hubs and angel investment networks like the Lagos Angel Network and the Afropreneur Angel Group (AAG), the company has taken the lead in Africa’s tech startup scene.
LoftyInc has funded hundreds of startups through its prior funds, and with its new Alpha Fund, the company will expand throughout Africa, carrying out its goal of empowering creative startups and securing Africa’s place in the world of technology.
The goal of the Alpha Fund is to expand on the knowledge gained from earlier funds. It will concentrate on seed investments that help business owners create robust enterprises and attain scalable expansion. In order to reflect the variety of opportunities found throughout the African continent, the fund will give priority to industries like financial services, retail enablement, logistics, healthcare, climate technology, and artificial intelligence.
A wide range of strategic investors were drawn to the Alpha Fund’s initial close, including commitments from sovereign wealth funds in the Middle East and Africa, including the Anava Fund of Funds in Tunisia and the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) in Egypt.
The Dutch Entrepreneurial Development Bank (FMO), the Dutch Good Growth Fund (DGGF), Proparco with FISEA, AfricaGrow, a fund of funds managed by Allianz Global Investors and advised by DEG Impact GmbH, and the International Finance Corporation (IFC) are examples of development finance institution (DFI) investors.
Recurring limited partners like First Close Partners, a US-based family office that makes investments in high-performing venture funds run by underrepresented managers worldwide, also contribute to the Fund’s gains. Additionally, a number of European family offices and high-net-worth Africans joined, demonstrating a strong alignment of regional and international investors who have a similar goal of accelerating Africa’s tech ecosystem.
“Our previous funds were backed primarily by African professionals and experienced entrepreneurs who not only provided capital but also leveraged their networks and industry expertise to help startups thrive – establishing the foundation for institutionalising our investment approach,” said LoftyInc managing partner Idris Ayodeji Bello.
“In an exceptionally challenging fundraising climate, we are thrilled to have surpassed our first-close target, attracting new institutional investors while reaffirming the commitment of our existing backers. This latest raise positions us to scale our vision: empowering Afropreneurs who build transformative, tech-driven solutions for Africa’s everyday economy.”
