Notes

Time-tested Ways To Investors Willing To Invest In Africa Your Customers
There are many good reasons to invest in Africa however, investors must be aware that the continent will test their patience. The African markets are volatile and time horizons do not always work. Even the most sophisticated companies might have to review their business plans, as Nestle did last year in 21 African countries. Many countries also face deficits. It will take strong and resourceful investors to fill in these gaps and bring more prosperity to Africans.

The $71 million investment by TLcom Capital TIDE Africa Fund

The latest venture from TLcom Capital has been closed at an estimated $71 million. The fund's predecessor shut down in January of last 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 concentrate on fintech companies located in East Africa. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom includes Twiga Foods, Andela, uLesson, and Kobo360. The investment company makes between $500,000 and $10 million in each company.

TLcom is an Nairobi-based VC company with more than $200 million under control. Omobola Johnson is the managing partner of the company. He has helped start more than a dozen tech companies on the continent, such as Twiga Foods, and a trucking logistics company. The team of the investment firm includes Omobola Johnson, a former Nigerian minister of communication technology.

TIDE Africa is an equity investment fund that invests in growth stage tech companies in SSA. It will invest between $500,000 and $10 million in companies that are at the beginning of their development 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. TIDE for instance has invested in five high growth digital companies in Kenya.

Omidyar Network's $71 million TEEP Fund

The Omidyar Network is a US-based foundation that invests in philanthropy and aims to invest between $100 and $200 million in India over the next five years. The fund was created by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since the year 2010. The fund invests in the Indian consumer internet, entrepreneurship , and financial inclusion. It also has investments in property rights, transparency in government, government transparency, and companies with social impact.

The Omidyar Network's TEEP Fund makes investments that are designed to improve access and accessibility to government information. It seeks to identify non-profits that make use of technology in creating public information portals and tools to citizens. The network believes that open access to government information increases the public's awareness of government processes, and in turn leads to a more engaged society that holds officials accountable. Imaginable Futures will invest the funds into nonprofit and for-profit organisations that focus on education and health.

Raise

If you're looking to raise money for your African start-up, you need to look for a business with an emphasis on Africa. TLcom Capital, a fund manager located in London, is one such company. 5m+ have attracted the attention of angel investors, and the company has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund that intends to invest in 12 startups before they achieve revenue.

The capital market is becoming more aware of the potential appeal of Africa venture capital. Private investors are increasingly realizing the potential for growth in Africa and aren't limited by institutional investors. This means that raising funds is much less difficult than in the past. Raise allows businesses to close deals in half the time and is devoid of institutional constraints. But there's no one right way to raise funds for African investors.

Understanding how investors perceive African investments is the first step. Although many investors are attracted to YC hype, it's essential to think beyond this Silicon Valley giant and the African Union's agenda 2063. African startups are now looking for the YC signal to make contact with US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke about the importance of the YC signal when seeking funds for African investors.

GetEquity


In July 2021, GetEquity is an investment platform in Nigeria aimed to make it easier for startups to access funding in Africa. It hopes to make funding African startups accessible to the common man by bringing the best capital raising tools available to any startup. It has already helped a number of startups raise more than $150,000 from investors of all kinds. In addition, it also offers a secondary market for investors to buy other people's tokens.

Like equity crowdfunding, investing in early-stage companies can be an extremely exclusive business. It is typically only accessible to the most well-known individual angel investors, capital institutions and syndicates. It is not accessible to family and friends. New startups are trying to change this traditional arrangement by making it easier to access financing for startups in Africa. The platform is accessible on iOS and Android devices and is completely free to use.

The GetEquity's wallet based on blockchain is now open to investors. This allows investors to invest in the development of startups in Africa. Investors can invest as little as $10 in African startups using crypto funds. Although it's a small amount, it's still a significant amount of money compared to traditional equity financing. In the wake of the recent demise of Paystack by Spark Capital, GetEquity has developed into a thriving ecosystem for investors looking to invest in Africa.

Bamboo

The first hurdle for Bamboo is convincing young Africans to invest on the platform. Up until now, investors in Africa were restricted to a handful of options: foreign direct investment (FDI) or crowdfunding and the legacy finance companies. A mere third of the African population has been able to invest on any platform. However the company has announced that it is expanding into other parts of Africa, with plans to launch in Ghana in April 2021. More than 50.000 Ghanaians are on the waitlist at the time of writing.

Africans have few alternatives for saving money. The currency is losing value against the dollar due to inflation that is close to 16 percent. The investment of dollars can help you protect yourself from inflation and the possibility of a declining dollar. Bamboo has seen rapid growth over the past two years, is a platform that lets Africans invest in U.S. stock options. Bamboo will launch in Ghana in April 2021. It has already surpassed 100,000 users who are waiting to be granted access.

Investors can fund their wallets starting at just $20 once they're registered. You can fund your wallet with credit cards, bank transfers, or payment cards. In the future, users can exchange ETFs and stocks and receive regular market updates. Bamboo's platform, which is bank-level secure and dependable, it can be utilized by anyone within Africa who can provide an official Nigerian Bank Verification Number. Bamboo's services can also be utilized by professional investment advisors.

Chaka

Nigeria is a major hub for legitimate investment and business. Nigeria's film and entertainment industry is among the biggest in Africa. The country's growing fintech industry has led to an explosion in the number of startups and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's modern developments will eventually open doors to a new class of investors. Chaka also received seed-funds from Microtraction, which is managed by Michael Seibel, CEO of Y Combinator.

The deteriorating US-China relationship has accelerated Beijing's interest in African investments. An increase in anti-China sentiment as well as the trade war have made it more appealing to investors to invest in African companies that aren't in the US. The African continent is a large, emerging economies, however, the majority of markets are too small to support venture-sized companies. The entrepreneurs of companies in Africa must be ready to adopt an expansion mindset and to lock in a coherent expansion narrative.

The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure investment in African stocks. Chaka is free to join, and you'll receive a 0.5 percent commission for each trade. Withdrawals of cash available can take up to 12 hours. On the other hand, withdrawals of sold shares can take up to three days. Both are handled locally.

Rise

Africa is enjoying positive developments from the increased number of investors looking to invest. Its economy is stable and its governance is sound, which attracts foreign investors. This has led to a rise in living standards in Africa. Africa is still a risky investment area. Investors should exercise caution and do their study. There are plenty of opportunities to invest in Africa, but the continent must make improvements to draw foreign capital. In the next few years, African governments should work to create more conducive environments for business and enhance the business environment.

The United States is more willing to invest in the economies of Africa via foreign direct investments. In 2013, U.S. governments helped develop a major financing for healthcare facility in Senegal. The U.S. government also supported investments in new technologies in Africa and helped pharmacies in Nigeria and Kenya have access to high-quality medicines. These investments can create jobs and foster a long-term partnership between the U.S. and Africa.

There are many opportunities on the African stock exchange. However, it is important to understand the market and to do your due diligence to avoid losing money. If you're a modest investor, it's a smart idea to invest in an exchange traded fund (ETFs), which tracks various Sub-Saharan African businesses. For U.S. investors, American depositary receipts (ADRs) are a convenient option to trade African stocks in the U.S. stock market.

Homepage: https://www.5mfunding.com/