Lagos-based Ventures Platform, one of Africa’s most active early-stage venture capital firms, has secured $64 million toward its second fund—aiming for a final close of $75 million. The move underscores growing confidence in Africa’s startup ecosystem, even as global venture capital cools.
Nigeria’s First Government Investment in Venture Capital
Among the backers is the Nigerian government, participating through its Investment in Digital and Creative Enterprises (iDICE) program. This marks the first-ever direct government investment in a Nigerian VC fund—a historic step for Africa’s largest startup economy.
Other notable investors include IFC, British International Investment (BII), Proparco, Standard Bank, MSMEDA, and AfricaGrow. The fund also drew backing from prominent European family offices such as Alder Tree Investment and global tech leaders like Michael Seibel, former CEO of Y Combinator. Notably, 70% of investors from the firm’s previous fund returned—signaling strong trust and performance.
From Early Bets to Bigger Stakes
Since its founding in 2016 by Kola Aina, Ventures Platform has earned a reputation for identifying and nurturing high-potential African startups early on. After closing its first institutional fund of $46 million in 2022, the firm is now moving beyond pre-seed and seed investments to include Series A rounds—aiming for larger ownership stakes and deeper impact.
“We’re investing with more conviction,” said Aina, noting that Series A capital has become scarce as global venture funding contracts. This strategy could bring much-needed growth-stage funding to African founders navigating tighter capital markets.
Expanding Beyond Nigeria’s Borders
While Ventures Platform continues to anchor its activities in Nigeria, it’s increasingly setting its sights on Francophone West Africa and North Africa. The firm has already made initial investments in these regions to gain early access to promising startups—part of a broader effort to build a pan-African innovation network.
Backing Africa’s “Painkiller” Startups
To date, Ventures Platform has backed over 90 startups across Africa, targeting what Aina calls “painkiller businesses”—companies solving for non-consumption, or unmet demand in underserved markets. Its portfolio includes some of Africa’s most transformative tech companies:
- Moniepoint – A Visa-backed fintech driving deep financial inclusion across Nigeria.
- Paystack – Acquired by Stripe, it unlocked online payments for thousands of small businesses.
- LemFi – A remittance platform backed by Left Lane Capital.
- SeamlessHR – Backed by the Gates Foundation, streamlining HR operations for African enterprises.
- OmniRetail, Raenest, and Remedial Health – Addressing retail digitization, fintech accessibility, and healthcare logistics, respectively.
“Before Paystack, many small businesses couldn’t sell beyond their immediate area because they couldn’t accept online payments,” Aina explained. “Moniepoint, on the other hand, has driven financial inclusion to the nooks and crannies of this country. That’s market-creating innovation.”
Weathering Africa’s Venture Capital Slowdown
While Africa’s tech ecosystem has attracted over $12 billion since 2015, many investors have raised concerns about the lack of liquidity and exit opportunities. The funding slowdown—from $5 billion in 2021 to $2 billion in 2023—has made it harder for emerging fund managers to raise capital.
Ventures Platform, however, stands out as an exception. Despite the downturn, it successfully raised two major funds by recycling capital from earlier syndicates and maintaining strong returns. The firm claims that its first fund ranks among the top global performers in its vintage year, based on TVPI and IRR.
Why Global Investors Still Believe in Africa
Even amid market uncertainty, Aina remains optimistic about Africa’s long-term potential. “If you’re a global capital allocator looking for true diversification, Africa is the place,” he said. “By 2050, one in four humans will be African. Our GDP growth rate is double that of the U.S., and yet most of the value is still offline. The opportunity is huge if you have patience and local context.”
In other words, Ventures Platform and its backers are betting that Africa’s startup ecosystem will deliver high-risk, high-reward alpha over the next decade—especially as digital infrastructure and fintech adoption accelerate across the continent.
The Bigger Picture: Africa’s New Investment Momentum
Ventures Platform’s milestone follows a broader trend of resurgent venture activity in Africa, with increasing participation from local institutions, development finance bodies, and diaspora investors. As the continent pushes toward more homegrown funding, government participation through programs like iDICE could signal a turning point for sustainable ecosystem growth.
What’s Next? As Ventures Platform sharpens its regional focus and scales up investments, the firm’s progress could serve as a roadmap for other African VCs navigating the global downturn. The big question: will Africa’s next unicorn emerge from this new $64 million bet?
What do you think—will Africa’s next wave of billion-dollar startups come from government-backed innovation funds like iDICE? Share your thoughts below.
