An African-led venture capital firmConstant Ventures, which aims to catalyze the growth of Africa’s largest economy, is launching a $100 million venture capital investment fund for digital businesses, focused on financial inclusion, education and Health care.
From helping to set up businesses in its venture capital studio to pre-seed participation to Series A, Capital Ventures has been an angel investor in African entrepreneurs and a supporter of the development of the African tech ecosystem.
So far, Capital Ventures has invested over US$3.2 million in nine Nigerian start-ups including Halo, gokada, Application area, Tingtel, Heal, Sabiroa, CreditClan, FIG. and Omnibiz yielding a 5.6x return and a 15x return after the next round of funding.
Technology was always going to provide the answer to so many critical issues facing millions of people across Africa today. We are now on the cusp of a paradigm shift, with recent advances in information technology presenting a unique investment window. We looked at what worked in other geographies. Now, refined and optimized for Africa, we have modeled a fund to invest in businesses that will both improve the lives of millions and deliver exceptional returns to investors.
Ike Echeruo, Chairman of Constant Group and Co-Founder and Managing Partner of Constant Ventures
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How does Constant Ventures work?
Constant Ventures funding has a very unique framework for determining who benefits from its investment strategy. The company mainly invests in exceptional entrepreneurs and intriguing start-ups. She also invests through her own venture capital studio, which is a strong community force for entrepreneurs with unique ideas and capital to build businesses quickly.
This $100 million investment, however, is aimed specifically at fintech platforms and start-ups in the market. These start-ups must also be active in goods, infrastructure and services that provide underserved people with access to loans, savings and investments, as well as platforms or marketplaces for information trading, of products or services.
Additionally, the funds available for each eligible start-up range between $50,000 and $15 million, with each company receiving a maximum of 15% of the fund.
The companies receiving this fundraising will be based in Nigeria and Ghana initially, as Constant Ventures aims to expand funding to the rest of West Africa later.
About Capital Ventures
Constant Ventures and Constant Capital are part of the Constant group. The Constant Group was founded by Ike Echeruo and Chinedu Echeruo in 2006. Constant Ventures is a venture capital firm focused on investing in technology companies in the banking, healthcare and logistics sectors in Africa.
The objective is to provide instruments of wealth creation and to create a financial education space for companies and entrepreneurs. It also aims to support African entrepreneurs and achieve gender parity in business financing.
Venture Capital Funding in West Africa
The success, expansion and development of most African tech ecosystems and entrepreneurs in Africa have been aided by venture capital funding. This is mainly because the tech ecosystem is highly sought after and can deliver huge hits.
According to a Magnitt survey, some West African countries like Nigeria, South Africa and Kenya have been able to raise over 90% of all venture capital funding in the region by 2021.
Angel investors and venture capital funding initiatives have provided substantial support and investment sponsorship to startups across West Africa over time. This has contributed to the growth of the entrepreneurial sector, as the ecosystem of tech start-ups in this part of Africa has grown rapidly, transforming Africa into a future tech giant.
Interested start-ups and entrepreneurs should contact [email protected]t.ventures for more information on fund ratings.
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