There are many reasons to invest, however investors should be aware that Africa can test their patience. The African markets are volatile and time horizons don't always work. Even highly sophisticated companies might have to adjust their business plans as Nestle did in 21 African countries in the last year. Many countries also have deficits. These gaps will need to be filled by resourceful and bold investors who will bring more prosperity to Africa.
TLcom Capital's $71 Million TIDE Africa Fund
The latest venture from TLcom Capital ended at $71 million. The fund's predecessor was shut in January of this year. TLcom, Bio, CDC Group, and Sango Capital contributed five million dollars. The first fund was invested in tech companies in Kenya and Nigeria. TIDE Africa II will be focusing on East African fintech companies. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom is comprised of Twiga Foods and Andela as well as uLesson and Kobo360. The investment firm invests between $500,000 and $10 million in each of the companies.
TLcom is a Nairobi-based VC company is home to more than $200 million under management. Omobola Johnson is the company's Managing Partner. He has assisted in the start more than a dozen tech businesses in Africa, investors looking for entrepreneurs including Twiga Foods, and a logistical trucking business. The investment firm's team includes Omobola Johnson, who was the former Nigerian minister of communication technology.
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 in the early stages and will focus on Series A and B rounds. The fund will be focused on Anglophone Africa but it plans to invest in Eastern and Southern African countries. In Kenya for instance, TIDE has invested in five companies that are growing rapidly in the digital sector.
Omidyar Network's $71 million TEEP Fund
The Omidyar Network is a US-based charitable investment firm that hopes to invest between $100 and $200 million in India over the next five years. Pierre Omidyar, co-founder of eBay created the fund and has invested $113 million in 35 Indian companies. The fund invests in India's consumer internet, entrepreneurship , and financial inclusion. It also has investments in property rights, Investors Willing To Invest In Africa government transparency, transparency of the government, and companies that have social impact.
The Omidyar Network's TEEP Fund makes investments that are designed to increase access to government information. Its aim is to find nonprofits that use technology to develop public information portals and tools for citizens. The network believes that having open access to government data increases the public's awareness of government processes, and in turn will result in a more engaged society that holds officials accountable. Imaginable Futures will invest the funds in non-profit and for-profit organizations focusing on education and health.
Raise
You should pick a business that is Africa-centric if you want to raise funds for your African startup. TLcom Capital, a fund manager with its headquarters in London is one of these companies. Angel investors have been attracted to its African investments and the company has raised money in Nigeria and Kenya. TLcom has announced the launch a new fund of $71 million, which will invest in 12 startups prior to reaching profitability.
The capital market is becoming increasingly aware of the potential of Africa venture capital. Private investors are increasingly seeing the potential of Africa's development and don't have to be limited by institutional investors. This means that raising funds is never easier. Raise helps businesses to close deals in a fraction of the time and is also free of institutional restrictions. There's no single best method of raising funds for African investors.
The first step is to learn what investors think about African investments. While YC hype is appealing to a large number of investors It is crucial to take a look beyond the Silicon Valley giant and Agenda 2063 of the African Union. African startups are now looking for the YC signal to engage with US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke about the importance of the YC sign when raising funds for African investors.
GetEquity
Founded in July 2021, GetEquity is a Nigeria-based investment platform aimed to make it easier for startups to access funding in Africa. It aims to make the process of funding African startups accessible to everyone by providing world-class capital raising tools to any startup. The platform has already helped startups raise more than $150,000 from a variety of Investors Willing To Invest In Africa (Https://Www.5Mfunding.Com). In addition, it also provides a secondary market that allows investors to buy other investors' tokens.
In contrast to equity crowdfunding, investing into early-stage companies is an extremely exclusive venture. It is usually only available to the most renowned individual angel investors, capital institutions and syndicates. It's not typically accessible to family members or friends. New companies are trying to change this unwelcome arrangement by making it easier to get capital for startups in Africa. The platform is available on iOS and Android devices and is completely free to use.
GetEquity's blockchain-based wallet is now accessible to investors. This makes it possible to invest in startups from Africa. Investors can invest as low as $10 in African startups using crypto funds. While this may seem like an insignificant amount in comparison to traditional equity funding but it's still an impressive amount of money. After the recent withdrawal from Paystack by Spark Capital GetEquity has become a strong ecosystem for investors from Africa who want to invest in Africa.
Bamboo
Bamboo's first obstacle is convincing young Africans to invest in the platform. Investors in Africa had few options before the present the crowdfunding platform, foreign direct investment (FDI) and traditional finance companies. Only about a third have invested in any platform. The company says it is expanding into other countries in Africa, where to find investors in south africa with plans to launch in Ghana in April 2021. More than 50, 000 Ghanaians are on the waiting list as of this writing.
Africans have limited options for saving money. The currency is losing value against the dollar due to inflation of more than 16%. Investing dollars can help you to protect yourself against inflation and falling dollar. One platform that allows Africans to invest in U.S. stocks is Bamboo which has seen rapid growth in the past two years. Bamboo will begin operations in Ghana in April 2021. Bamboo already has more than 100,000 users who are waiting to access.
Once registered, investors are able to fund their accounts with just $20. You can fund your wallet using credit cards, bank transfers, or payment cards. Then, they can exchange ETFs and stocks and receive regular market updates. Bamboo's platform is secured at the bank level which means that anyone in Africa can use it if they have an authentic Nigerian Bank Verification number. Professional investment advisors can make use of Bamboo's services.
Chaka
Nigeria is a center for investors willing to invest In africa legitimate investment and business. Its film and entertainment industry is among the top in the world and the country's growing fintech industry has resulted in a boom in startup formation and VC activity. TechCrunch spoke with Iyinoluwa Abodeji, one of Chaka's most prominent backers. She stated that the country's progressive tendencies could eventually open doors to a new class investors. In addition to Aboyeji's investment, Chaka has also secured seed-funds from the Microtraction fund, which is led by Y Combinator CEO Michael Seibel.
The deteriorating relationship between China and the US has accelerated Beijing's interest in African investments. An increase in anti-China sentiment as well as the trade war have made it more attractive to investors to invest in African companies outside of the US. Although the continent of Africa is home to many emerging economies, the majority of these are not large enough for venture-sized companies. The owners of businesses in Africa must be ready to take on an expansionist mindset and lock into a coherent expansion narrative.
The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a safe and secure investment in African stocks. Chaka is free to join and provides the possibility of earning a 0.5% commission on every trade. Cash withdrawals of cash available can take up to 12 hours. In the case of withdrawals of shares sold, on the other hand can take as long as three days. Both are handled locally.
Rise
Africa is seeing positive news from the increase in investors looking to invest. The country's economy is stable and its governance is sound, which draws international investors. This has led to a rise in the standard of living in Africa. Africa is still a risky investment destination. Investors should be cautious and conduct their own studies. There are plenty of opportunities to invest in Africa, but the continent needs to improve its infrastructure to attract foreign capital. In the coming years, African governments should work to create more business-friendly environments and enhance the business environment.
The United States is increasingly willing to aid African economies through direct foreign investment. U.S. governments assisted Senegal in advancing a significant healthcare financing facility. The U.S. government also supported the development of new technologies in Africa and also helped pharmacies in Nigeria and Kenya provide high-quality medication. This investment can help create jobs and help build long-term partnerships between the U.S.A and Africa.
There are many opportunities available in the African market for stocks, it is vital to understand the market and perform due diligence to make sure that you don't lose money. If you're a smaller investor, it is best to invest in exchange-traded funds (ETFs) which are funds that track a broad basket of Sub-Saharan African companies. For U.S. investors, American depositary receipts (ADRs) are an easy way to trade African stocks in the U.S. stock market.