Notes

Smart People Investors Willing To Invest In Africa To Get Ahead
There are many good reasons to invest in Africa, investors should know that the region will test their patience. The African markets can be volatile and time horizons may not always be effective. Even the most sophisticated companies might need to re-evaluate their business plans, just as Nestle did in 21 African countries in the last year. Many countries also face deficits. These gaps must be filled by resourceful and bold investors who can bring more prosperity to Africa.

The $71 Million TLcom Capital's TIDE Africa Fund

TLcom Capital's latest venture has closed at a reported $71 million. The fund's predecessor closed in January of this year. TLcom, Bio, CDC Group and Sango Capital contributed five million dollars. The fund's first investment was in 12 tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will focus on fintech companies located in East Africa. The investment firm also has offices in Nigeria and Kenya. The portfolio of TLcom comprises Twiga Foods, Andela, uLesson, and Kobo360. The investment firm makes between the amount of $500,000 to $10 million for each of the companies.

TLcom is a Nairobi-based VC firm with more than $200 million in under management. The company's managing partner, Omobola Johnson, has helped launch over dozen tech-related companies across the continent including Twiga Foods and a trucking logistics company. The investment firm's team is comprised of Omobola Johnson, who was a former Nigerian minister of technology and communication.

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 early-stage companies that are focusing on Series A and II rounds. The fund will be primarily focused on Anglophone Africa but it plans to invest in Eastern, and Southern African countries. TIDE is one example. It has invested in five high-growth digital companies in Kenya.

Omidyar Network's $71 million TEEP Fund

The Omidyar Network, a US-based philanthropic investing firm, aims to invest $100-$200 millions in India over five years. The fund was founded by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian businesses since 2010. The fund invests in India's consumer internet, entrepreneurship , as well as financial inclusion. It also has investments in property rights, government transparency, transparency of the government, and companies that have a social impact.

The Omidyar Network's TEEP Fund makes investments that are designed to improve access to government information. Its objective is to identify non-profit organizations that make use of technology to create public information portals and tools for citizens. The group believes that access to government information improves public knowledge about government processes and leads to an active society that is accountable to government officials. Imaginable Futures will invest the funds in non-profit and for-profit organisations that focus on education and health.

Raise

You should select a company with a focus on Africa if are looking to raise capital for your African startup. One of these companies is TLcom Capital, a fund management firm with its headquarters in London. Angel investors have been drawn to its African investments, and the team has raised funds in Nigeria and Kenya. TLcom has just announced the launch a new fund of $71 million to invest in 12 startups before they reach profitability.


The capital market is becoming more aware of the benefits of Africa venture capital. investors willing to invest in africa are becoming more aware of the potential of Africa for growth and don't face the restrictions of institutional investors. This means that raising money is never easier. Raise allows businesses to close deals in half the time and is devoid of the constraints of institutions. There's no perfect way to raise funds for African investors.

The first step is to understand what investors think about African investments. While many investors are drawn to YC hype, it's essential to be aware of the broader implications of this Silicon Valley giant and the African Union's agenda 2063. This is why African entrepreneurs are seeking the YC signal before they approach US investors. Kyane Kassiri, an Tunisian venture capitalist, recently talked about the importance the YC signal when it comes to raising funds for African investors.

GetEquity

GetEquity, a Nigeria-based investment platform, was launched in July 2021. It aims to democratize startup funding in Africa. It wants to make the process of funding African startups accessible to everyone and provide top capital raising tools for any startup. The platform has already helped startups raise over $150,000 from a wide range of investors. It also has secondary markets for investors to purchase tokens from other investors.

Like equity crowdfunding, investing in companies in the early stages can be a very exclusive activity. It is usually only available to the most well-known individual angel investors, capital institutions and syndicates. It is not accessible to family and friends. New startups are attempting to change this unwelcome arrangement by making it easier for entrepreneurs to access financing for startups in Africa. The platform is available on iOS and Android devices and is free to use.

The GetEquity's cryptocurrency-based wallet is available for investors. This allows investors to invest in the development of startups in Africa. With the assistance of crypto funds, investors can invest in African startups for as little as $10. While this may seem like a small amount as compared to traditional equity financing, it is still an enormous amount of money. After the recent withdrawal from Paystack by Spark Capital GetEquity has become a strong ecosystem for investors from Africa looking to invest in Africa.

Bamboo

Bamboo's first hurdle is convincing young Africans to invest on the platform. Investors in Africa had limited options prior to the present including crowdfunding as well as foreign direct investment (FDI) as well as legacy finance companies. In fact, less than a third of the population has made a purchase in any platform. However the company claims it's expanding into other parts of Africa and plans to launch in Ghana in April 2021. More than 50.000 Ghanaians are on the waiting list as of this writing.

Africans don't have many options to save money. The value of the currency is declining against the dollar due inflation that is close to 16 percent. It is possible to invest dollars to help to protect yourself against inflation and a falling dollar. Bamboo has seen rapid growth over the past two years, is a platform that lets Africans to invest in U.S. stock options. It plans to launch in Ghana in April 2021 and has more than 50,000 users waiting for access.

Investors can fund their accounts starting at $20 once they are registered. The funding process can be accomplished through credit cards, bank transfer, and credit cards. Then, they can trade stocks and ETFs, and receive regular market updates. Bamboo's platform, which is secure at the bank level it is accessible by anyone within Africa who has an official Nigerian Bank Verification Number. Professional investment advisors may also benefit from Bamboo's services.

Chaka

There are a number of reasons why Nigeria is a hotspot for legitimate business and investment. Nigeria's entertainment and film industry is one of the largest in Africa. The country's growing fintech ecosystem has led to an increase in the number of startup companies and VC activity. One of the most prominent supporters of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's progressive 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 relationship between China and the US has accelerated Beijing's interest in African investments. Rising anti-China sentiments and the trade war have increased the appeal of investors to invest in African companies that aren't in the US. The African continent has large, emerging economies however, most markets are too small to support venture-sized companies. African entrepreneurs should be prepared to adopt an expansion-minded mindset and craft a coherent expansion story.

The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure place to invest in African stocks. Chaka is free to join, and you will receive the 0.5 percent commission per trade. Cash 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 cases are handled locally.

Rise

The increase in investors willing to invest in Africa is a positive sign for Africa. The country's economy is stable and its governance is solid, which attracts foreign investors. This growth has increased the standard of living in Africa. Africa is still a risky investment area. Investors should be cautious and do their due diligence. There are many opportunities to invest in Africa. However the continent needs to improve its infrastructure to attract foreign capital. African governments must collaborate to create a more conducive business environment and improve the business climate in the near future.

The United States is more willing to invest in the economies of Africa through foreign direct investment. U.S. governments assisted Senegal in advancing a major healthcare financing facility. The U.S. government also helped to secure investments in new technologies in Africa and also assisted pharmacies in Kenya and Nigeria supply high-quality medications. This type of investment could create jobs and create an ongoing relationship between the U.S. and Africa.

There are many opportunities on the African stock exchange. However, it's important to know the market and conduct your due diligence to avoid losing money. If you're a modest investor it is a good idea to invest in exchange-traded fund (ETFs) which track an array of Sub-Saharan African businesses. American depositary receipts (ADRs) which are issued by the United America, allow you to trade African stocks on the U.S. stock exchange.

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