LoftyInc Capital is a pan-African venture capital firm that launched today its third fund, LoftyInc Africapreneurs Fund 3, at $10 million to support tech startups in Africa.
Firm has closed the first $5.5 million transaction. __S.2__
Since it started raising funds for the fund, LoftyInc a written check to more than 20 startups. __S.4__
Francophone Africa: The company invested in Afrikrea, Star News Mobile and Sudo Africa. Next, in Omnibiz and RXAll. __S.7__
Odiggo and Illa are the North African portfolios of LoftyInc. Tagaddod and Instadiet also make up LoftyInc. LoftyInc’s South Africa portfolio includes Beamm Digital, Zazu Africa and Akiba Digital. Cashback and Dash were funded in East Africa. LoftyInc has Diasporan interests, including in OjaExpress or FitMatch.
LoftyInc manages three funds at once. Its second formal VC fund is primarily focused on Nigeria. This third fund, on the other hand follows LoftyInc’s original thesis: investing in startups in different sectors and markets in Africa and across the diaspora. __S.14__
According to the fund, it is willing to place large bets in markets other than those of the Big Four (Nigeria, South Africa and South Africa)
TechCrunch featured Olumide Soyombo, one of Africa’s top angel investors, a month ago. Olumide Soyombo is one of few greats among a group that also includes LoftyInc founder Idris Belo, general partner.
Bello describes his 12 year journey into technology and entrepreneurship in “Afropreneurship” as the experience of an “Afropreneurship Journey.” He realized while in U.S. business school that Africa needed the support of up-and coming founders for the next generation of innovation.
Bello, along with other entrepreneurs, founded LoftyInc Allied Partners as an enterprise development firm. The venture arm LoftyInc Capital was also created.
The firm created LoftyInc Afropreneurs Fund 1, its first pre-seed stage fund, in 2012. This fund acts more as an angel group or a syndicate, with investors including senior executives from key African industries.
More than 180 business angels have invested via the fund’s first fund.CollectivelyMore than $4 Million was invested in 40+ startups on the continent.There are many big names that hail from Egypt and Nigeria, including the unicorn Flutterwave, soonicorn Andela and Trella. Chefaa and Koniku are also among them..
Bello, five years later, was the founder partner and teamed up Marsha Wulff (a long-time advisor) who was an early investor in Teladoc’s healthtech company. __S.32__ __S.33__
LoftyInc issued checks totaling over $1.2 Million in nine rounds between 2017 and 2020 to six Nigerian startup companies — Printivo (pre-Series A), RelianceHMO. Epump. Shyft Power Solutions. Flutterwave. __S.35__
LoftyInc’s initial exit was Flutterwave, which Bello stated returned three times its LPs. This exit was the catalyst for the creation of the third fund.
Our LPs asked us to create another fund after we had exited Flutterwave. They were pleased with the returns we gave them. We initially wanted to raise $2.5 million, but we were eventually able to get inquiries from LPs to increase the amount to $4 million. Bello told TechCrunch that eventually, we decided to increase it to $10 million so that we could invest more in startups.
However, when one looks at Bello’s position in Africa’s tech ecosystem and the similar Africa-focused funds that are being raised these days, it is easy to wonder why this investor hasn’t raised more. __S.42__
I always repeat this: My approach is quite different. It’s evident that I am very organic, which can be seen in the way we went from an angel group to LPs. __S.46__ What I am doing is building a lower base than a pyramid to make it easier to deploy large funds .”
He also mentions the involvement of limited partners. The majority of the firm’s third-fund LPs hold managerial and C-suite positions at banks and multinationals. __S.50__
We want to create an African investor ecosystem. We’ll then start to build the institutions that will also participate in investing .”
According to Bello, LoftyInc enjoys a strong deal flow and sees about 30 decks per day. __S.54__ He believes that LoftyInc is different from other VC companies because of this.
Jeremy Johnson, CEO of Andela, spoke briefly to TechCrunch about how LoftyInc had backed Johnson before he was even known. It makes perfect sense for him to invest in the fund and source deals.
The firm also boasts a large investor base, both African and non-African, through its first fund. Bello says that this angel network also doubles as venture scouts.
We invest prior to major investors, we hold the hand new founders and source initial clients from our extensive portfolio of 65 African startups, angel network, and LP networks. __S.61__
We also offer meaningful introductions to partners, regulators, mentors, top-hires and experienced board directors. We are also sought after by founders because we have attracted both early-stage and late-stage investors in previous ventures span>
LoftyInc’s criteria for choosing companies to invest in is a preference for those that target a market large enough with no or little competition, have a product users love and are able to execute well.
LoftyInc, like most VC companies out there claims to be sector agnostic. __S.66__ __S.67__
LoftyInc is bullish in the pre-seed stage with its first fund. This was mostly catered for by angel investors. The group has completed over 50 preseed deals this year. The focus of the rest is on Series A and Seed deals, with an average ticket size $250,000. __S.71__
LoftyInc has a target of $10 million for Fund 3, but Bello told TechCrunch the company hopes to close more than that amount before the end Q4 2021. __S.73__
Publiated at Tue 31 August 2021, 09:06:53 (+0000).