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LoftyInc Capital launches third fund at $10M for a more diverse portfolio of African startups – TechCrunch

Lofty Inc CapitalPan-African VC firm today announced the launch of its third fund for African tech startups, the Lofty Inc Afropreneurs Fund 3, for $ 10 million...

The company reached its initial closing price of $ 5.5 million. Limited vehicle partners include the second fund, FBNQuest Funds, Camac, Syndicate of The Green Investment Club, and HNI of multinational companies such as Google, Facebook and ExxonMobil.Undead CEO Jeremy Johnson and others..

So far, Lofty Inc has written checks on more than 20 startups since it started raising funds. They span different industries such as e-commerce, fintech, healthcare, logistics and media in different parts of Africa and abroad...

At Francophone Africa, the company has invested in Afrikrea and Star News Mobile. Then at Omnibiz, RXAll, Sudo Africa, Tech Advance, Aladdin, Flex Finance, Star Kitchens Group, and EPump in West Africa.

Lofty Inc’s portfolio in North Africa includes Odiggo, Illa, Tagaddod, and Instagram. Akiba Digital, Beamm, and Zazu Africa make up Lofty Inc’s portfolio in South Africa, and Cashback and Dash are East African-funded startups. Lofty Inc is also interested in Diaspora for Oja Express and Fit Match.

Lofty Inc operates three funds at the same time.The first formal VC fund, the second fund, focuses primarily on Nigeria.. This third fund, on the other hand, follows the treatise of Lofty Inc’s first fund. Investing in startups across different markets and sectors in Africa and the Diaspora.

The fund says it wants to make big bets on markets other than Big Four, such as Nigeria, Kenya, South Africa and Egypt.

Operates 3 funds

A month ago, TechCrunch Featured on Olumide Soyombo, one of Africa’s most important angel investors.. He is one of the few game giants who is the founder and general partner of Lofty Inc. Idris Bello..

Bello likes to describe a 12-year venture into technology and entrepreneurship as an “Afroplanarity journey.”.. ” While attending a business school in the United States, he realized that the next wave of innovation needed by Africa as a continent was on the shoulders of up-and-coming founders...

With that in mind, Bello started Lofty Inc related partners With other entrepreneurs as a corporate development company..that We have spun off a technology hub called Wennovation Hub, a venture accelerator, and a venture arm called Lofty Inc Capital...

In 2012, the company launched Lofty Inc Afropreneurs Fund 1, the first fund for pre-seed investment. The fund acts like a syndicate or angel group where investors include senior management in key industries across Africa.

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Over 180 business angels are investing through the first fund, collect Over $ 4 Million in Over 40 Startups Across the Continent.. Celebrities of Nigerian and Egyptian origin include the Unicorn Flutterwave, soonicorn Andela, Trella, Chefaa and Koniku...

Five years later, Bello teamed up as a founding partner with Marsha Wulff, a longtime adviser and early investor in the health tech company Teladoc. They launched a second fund Lofty Inc Afropreneurs Fund 2, With Michael Oluwagbemi, who is also the company’s general partner..

From 2017 to 2020, Lofty Inc produced over $ 1.2 million in checks in 9 to 6 rounds. Nigerian Start-ups — Printivo, RelianceHMO, Epump, YouVerify, Shyft Power Solutions, and Flutterwave (Before Series A)..

Flutterwave acted as the first exit for Lofty Inc, and Bello says it has tripled back to LP. It was this successful exit that laid the foundation for the third fund.

“When we closed Flutterwave’s stake in February, LP was so profitable that it wanted to raise another fund to bring it together. At first, it wanted to raise $ 2.5 million. When I inquired from LP, it was 4 million dollars. Final we However We’ve decided to make it $ 10 million so we can invest in more startups, “Bello told TechCrunch.

But when you look at Bello’s situation in Africa’s tech ecosystem and what similar African-focused funds have recently raised, you may be wondering why investors aren’t raising any more. Hmm...

His answer to that:

“I always say this — my approach is very different. I am very organic and it is clear how we moved from the group of angels to LP. Feel When it reaches up to $ 50 to $ 100 million, the problem is well-developed, especially in Africa. And what I’m doing is building a small foundation in the pyramid. That way, when I raise a lot of money, it doesn’t matter how much money I deploy. “

Another point of his relationship is with the limited partners involved. Most of the LPs at this third fund company hold C suites and managerial positions at banks and other multinationals. Bello argues that it’s easy to join a cooperating institution for a larger fund if Fund 3 can fulfill its promise to bring great returns to these individual LPs...

“We want to build an ecosystem of African investors, and then we will start building a system to participate in investment.”

According to Bello, Lofty Inc has a strong trading flow, displaying about 30 decks a week. He says the fund receives so much flow because the founder of the portfolio startup is the company’s strongest source of proprietary transactions... And that’s what he believes will set Lofty Inc apart from other VC firms.

For example, in a brief chat with TechCrunch, Andela CEO Jeremy Johnson said Lofty Inc had already helped him before anyone knew about his startup... And for him, it makes sense to do the same by raising a deal and investing in a fund.

In addition, through its first fund, the company has an extensive investor base from Africa, both inside and outside the African continent. According to Bello, the Angel Network is also the company’s Venturer Scout.

“We usually invest before major investors, hold the hands of new founders, and within a large portfolio of over 65 African startups and a large African-based angel and LP network. Procure the first client in...

“We also provide meaningful referrals to regulators, partners, mentors, top hires and an experienced board of directors... The founders also want us in their deals as we have seen us attract both early and late investors to previous ventures. “

in terms of Lofty Inc’s investment in companies is biased towards large markets with little or no competition, products that users love, and people going to do it...

Like most VC companies out there, Lofty Inc claims to be sector agnostic. However, IoT, FinTech, and Healthtech startups have some affinity, Bello said.

Lofty Inc’s first fund, In many cases Offered by angel investors, it is the most bullish in the pre-seed stage. This year alone, the group has more than 50 pre-seed transactions. For others, the focus is on Series A seeds, with an average ticket size of $ 250,000.

Lofty Inc’s Fund 3 target is $ 10 million, but Bello tells TechCrunch that it hopes to achieve a final result that exceeds that number by the end of the fourth quarter of 2021...

LoftyInc Capital launches third fund at $10M for a more diverse portfolio of African startups – TechCrunch Source link LoftyInc Capital launches third fund at $10M for a more diverse portfolio of African startups – TechCrunch

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