African startups transitioning from Series A to Series B funding rounds will have an opportunity to attract investment this year after VC-firm Verod-Kepple Africa Ventures (VKAV) closed its first fund at US$60 million.
- The Pan-African VC firm has retained investment from key Japanese companies such as SBI Holdings, Toyota Tsusho Company, Sumitomo Mitsui Trust Bank, Japan International Corporation Agency, and the Japan ICT fund.
- This year’s funding has seen fresh investment from the Nigerian company SCM Capital, as well as Taiyo Holdings, and C2C Global Education Japan.
- In March last year, Verod-Kepple Ventures closed its fund at US$43 million, which it invested in an array of startups such as Moove, KOKO Networks, Cloudline, and mTek-Services.
“We felt that there are not enough funds at the growth stage of investing to get these companies to the next level in terms of scale, exits or even being around as sutainable profitable businesses,” said VKAV partner Ory Okolloh.
The VC company was launched in 2022 after two firms, Verod Capital and Kepple Africa, partnered to maximize their capacity in supporting underfunded African startups. The combined firm was among the VCs that helped various startups to navigate the rough waters last year, investing between US$1 million to US$3 million in 12 startups from Kenya, Nigeria, Egypt, Morocco, South Africa, and Ivory Coast.
This year, Verod-Kepple Ventures intends to focus exclusively on startups that will build digital infrastructure across all sectors, while streamlining operations for other businesses. The VC is also exploring opportunities in other African markets such as Angola, Zambia, Tunisia, and DRC – in a concerted effort of dominating the African investment sector which has a few but formidable players.
The Asian Connection
“VKAV has provided real and tangible value-add to KOKO with our Japanese market entry process, and in our African government relations strategy. They are an unusual firm, combining deep insight into African operating realities with an incredible network in Japan,” said Greg Murray, co-founder and CEO of KOKO Networks.
The Venture Capital In Africa Report 2023 states that Asia-Pacific corporations contributed only 9% of funding in the African startup ecosystem, lagging behind its European and American counterparts.
Japan has considered staking more interest in African innovation, with its companies investing in indigenous VCs such as Verod-Kepple Africa Ventures and Novastar Ventures.
“The Japan connection is important and we hope to expand that later on to even a broader Asian connection,” said Ory Okolloh.
