Notes

Eight Reasons Why You Can’t Investors Willing To Invest In Africa Without Social Media
There are many good reasons to invest in Africa however, investors must be aware that the continent will test their patience. The African markets aren't always stable and time horizons may not always be a good idea. Even the most sophisticated businesses might have to review their business plans, just as Nestle did last year in 21 African countries. Many countries also have deficits. It will require strong and resourceful investors to bridge these gaps and bring greater prosperity to Africans.


The $71 Million TLcom Capital's TIDE Africa Fund

The latest venture by TLcom Capital been closed at an estimated $71 million. The predecessor fund closed in January of last year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in 12 tech companies in Kenya, Nigeria, and South Africa. TIDE Africa II will concentrate on fintech companies in East Africa. The investment firm also has offices in Nigeria and Kenya. TLcom's portfolio comprises Twiga Foods and Andela as well as uLesson and Kobo360. Each company is worth between $500,000 to $10 million.

TLcom is a Nairobi-based VC firm with more than $200 million under management. The firm's Managing Partner, Omobola Johnson, has helped establish more than dozen tech companies across the continent, including Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of technology and communication in Nigeria) is part of the investment firm's team.

TIDE Africa is an equity investment fund that invests in growth tech companies in SSA. It will invest between $500,000 to $10 million in early-stage companies with a particular focus on Series A and II rounds. While the fund is focusing on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. TIDE for instance, has invested in five high growth digital companies in Kenya.

Omidyar Network's $71M TEEP Fund

The Omidyar Network is a US-based philanthropic investment firm that aims to invest between $100-$200 million in India in the next five years. investors looking for entrepreneurs , co-founder of eBay was the fund's founder and has invested $113 Million in 35 Indian companies. In India the fund invests in consumer internet, entrepreneurship, financial inclusion, transparency in government, property rights, and businesses that have social impact.

The Omidyar Network's TEEP Fund invests in projects that increase access to government information. Its mission is to identify nonprofits using technology to develop public information portals and tools for citizens. The network believes that having open access to government data increases citizens' awareness of the government's processes, which will result in a more engaged society that holds officials accountable. Imaginable Futures will use the funds to invest in non-profit and for-profit organizations that focus on education and healthcare.

Raise

If you're looking to raise money for your African startup, you should choose a company that has an emphasis on Africa. TLcom Capital, a fund manager based in London is one of these companies. Its African investments have attracted the attention of angel investors, and the team has raised funds in Nigeria and Kenya. TLcom recently announced the launch of a brand new $71 million fund aiming to invest in 12 startups prior to them reaching revenue.

The appeal of Africa venture capital is increasingly being recognized by the capital markets. More private investors are realizing the potential of Africa to grow and don't have the constraints of institutional investors. This means that raising money has never been simpler. Raise allows businesses to close deals in half the time, and is free from the restrictions of institutions. There is no one way to raise funds for African investors.

The first step is to understand the mindset of investors regarding African investments. While YC hype is appealing to many investors It is crucial to think beyond the Silicon Valley giant and Agenda 2063 of the African Union. This is why African entrepreneurs are seeking the YC signal before approaching US investors. Kyane Kassiri, a Tunisian venture capitalist, has recently spoke on the importance of the YC signal when it comes to 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 is aiming to make funding African startups accessible to all by providing capital raising tools and world-class capital for all startups. The platform has already helped startups raise over $150,000 from a variety of investors. It also provides secondary markets for investors to purchase tokens from other investors.

In contrast to equity crowdfunding, investing into companies in the early stages can be an extremely exclusive venture. It is usually only accessible to the most renowned individual angel investors, capital institutions and syndicates. It is rarely available to family members and friends. New startups are seeking to change this unwelcome arrangement by making it easier to get funding for startups in Africa. The platform is accessible on iOS and Android devices and is free to use.

With the launch of its cryptocurrency-based wallet, GetEquity is making startup investing in Africa feasible for all investors. With the aid of crypto funds investors can invest in African startups starting at just $10. While this may seem a small amount in comparison to traditional equity funding however, it's an impressive amount of money. And with the recent exit of Paystack by Spark Capital, GetEquity has transformed into a robust ecosystem for investors who are willing to invest in Africa.

Bamboo

Bamboo's first hurdle is convincing young Africans to invest on the platform. Until now investors in Africa were limited to a handful of options: foreign direct investment (FDI) or crowdfunding and traditional finance companies. In actuality, only 1/3 of the population has invested in any platform. The company now says it is expanding into other African countries, with plans to launch in Ghana by the end of April 2021. As of this writing, more than 50,000 Ghanaians have signed up on the waitlist.

Africans don't have many options for saving money. The currency is losing value against the dollar because of an inflation of nearly 16%. A dollar investment can help hedge against inflation and the decline of the dollar. Bamboo has experienced rapid growth in the past two years, is a platform that allows Africans to invest in U.S. stock options. It plans to launch in Ghana in April 2021, and has more than 500 users who are waiting to get access.

Investors can fund their wallets as early at just $20 once they're registered. Funding can be done through credit cards, bank transfer, and payment cards. They can then trade ETFs, stocks, and stocks and receive market updates. As Bamboo's platform is secure at the bank level, it can be used by anyone within Africa who has an official Nigerian Bank Verification Number. Professional investment advisors may also use Bamboo's services.

Chaka

There are a few reasons for why Nigeria is a hub for legitimate business and investment. Nigeria's film and entertainment industry is one of the largest in Africa. The country's expanding fintech ecosystem has resulted in an explosion in the number of startups and VC activity. TechCrunch spoke with Iyinoluwa Abodeji, one Chaka's most prominent investors. She said that the nation's progressive tendencies will eventually lead to investors from a new class. In addition to the investment of Aboyeji, Chaka has also secured seed-funds from the Microtraction fund which is headed by Y Combinator CEO Michael Seibel.

Beijing has been more interested in African investments due to the declining relationship between the US and China. The trade conflict, as well as increasing anti-China sentiments has made it more attractive for investors to consider investing outside of the US to invest in African companies. The African continent is home to large, developing economies, but most markets are too small to support venture-sized companies. The owners of businesses in Africa should be prepared to take on an expansionist mindset and be locked in a cohesive expansion narrative.

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

Rise

Africa is experiencing positive news due to the rise in investors looking to invest. The economy is stable and its governance is sound, which is why it is a popular destination for international investors. This has led to a rise in living standards in Africa. Africa is still a risky investment destination. Investors must be cautious and conduct their own study. There are numerous opportunities to invest in Africa however, the continent must improve its infrastructure to attract foreign capital. African governments must collaborate to create a more conducive business environment and improve the business environment in the coming years.

The United States is increasingly willing to help African economies through foreign direct investment. In 2013, U.S. governments helped to develop a major healthcare financing facility in Senegal. The U.S. government also supported investment in new technology in Africa and also helped pharmacies in Nigeria and Kenya stock high-quality medicine. These investments can create jobs and help build long-term partnerships between the U.S. and Africa.

There are many opportunities in the African stock exchange. However, it is important to understand the market and perform your due diligence to avoid losing money. If you are a small investor, it's best to invest in exchange-traded funds (ETFs) which are funds that track a wide selection 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.

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