With plans to invest between US $350,000 and US $1.5 million in 25 companies at the late pre-seed to Series A stages, Sabou Capital, a new investment fund specifically designed to fill funding gaps for SMEs in West and Central Africa, has opened for business.
With an emphasis on Nigeria, Senegal, and Ivory Coast, Sabou Capital was established by seasoned businesswoman Surayyah Ahmad, who has co-founded two prior ventures. The company is intended to assist companies operating in both English- and French-speaking nations.
Agroprocessing, supply chain, logistics, mobility, climate solutions, renewable energy, and agriculture are among the target industries. Sabou Capital markets itself as a “micro-private equity” company that helps companies that enhance their operations and service delivery through technology, even if they are not tech companies in the conventional sense.
Ahmad claimed that different ideas within Aduna Capital, which she co-founded, led to the creation of the fund.
“While we agreed on the purpose and goals, we overlooked how to execute them. That difference in approach made me realise how varied visions of impact can be,” she said.
In contrast to the 10x returns that many VC firms aim for, Sabou Capital is setting more modest return expectations than the typical venture capital model, aiming for returns in the 2x to 3x range. It will give investee businesses money and practical assistance.
“Before we release any funding, we work closely with companies to make sure they’re investment-ready,” Ahmad said.
