Quick Summary: International Finance Corporation (IFC) has committed $6 million to Ventures Platform Pan-African Fund II (VP II) to support early-stage tech startups in Africa. Managed by Ventures Platform GP Limited, the fund focuses on fintech, health tech, edtech, and other digital sectors. This investment aligns with IFC’s strategy to strengthen Africa’s digital entrepreneurship ecosystem. Ventures Platform continues expanding its footprint across multiple African markets.
International Finance Corporation (IFC) has pledged up to $6 million in equity investment to the Ventures Platform Pan-African Fund II (VP II). This venture capital fund is dedicated to supporting early-stage, technology-enabled startups across Africa. The goal is to improve access to seed-stage financing and provide critical value creation services for digital entrepreneurs.
Fund Management and Investment Focus
Ventures Platform GP Limited, a Nigeria-based firm led by Kola Aina and Dotun Olowoporoku, will manage VP II. While the fund will deploy capital across various African markets, Nigeria remains a primary focus.
This investment aligns with IFC’s broader strategy to strengthen Africa’s digital entrepreneurship ecosystem. Beyond providing capital, the initiative aims to stimulate local venture capital markets through demonstration effects, regulatory support, and capacity-building programs.
Ventures Platform: A Leading Early-Stage VC Firm
Founded in 2016 by Kola Aina, Ventures Platform has emerged as a key player in early-stage venture capital in Africa. The firm successfully closed its first fund (Fund I) at $40 million in December 2021, later expanding to $46 million with contributions from institutional investors, commercial banks, and development finance institutions such as IFC, British International Investment (BII), Proparco, and AfricaGrow.
Investment Sectors and Portfolio Growth
VP II plans to invest in sectors critical to Africa’s digital transformation, including:
- Fintech
- Insurtech
- Health tech
- Edtech
- Agritech
- Enterprise SaaS
- Digital infrastructure
Ventures Platform has positioned itself as a strategic partner for international investors seeking exposure to Africa’s emerging markets. Since inception, it has invested in over 90 companies, including notable startups such as Piggyvest, PayHippo, Mono, SeamlessHR, Tizeti, and Printivo.
The fund primarily supports pre-seed and seed-stage startups, with increasing allocations for Series A rounds. It has also started offering follow-on capital to help portfolio companies scale beyond Series A.
Fund I Performance and Market Strategy
From its $46 million Fund I, Ventures Platform has deployed $19.6 million across multiple startups. The majority of this funding has gone to:
- Pre-seed startups – 51.49%
- Seed-stage startups – 40.84%
- Pre-Series A startups – 7.64%
Sector-wise, fintech has been a major beneficiary, securing $6.8 million in funding, followed by SaaS ($2.8 million), health tech ($2.4 million), and B2B startups ($2 million). Additional investments totaling $7.9 million have been directed towards logistics, autotech, insurtech, and cleantech.
Despite a slowdown in Africa’s venture capital market, Ventures Platform remains optimistic about opportunities in intra-African remittances and startups with strong unit economics. According to Kola Aina, the current market downturn creates an ideal environment for strategic investments by reducing excessive speculation and rewarding businesses with sound fundamentals.
Expanding Beyond Nigeria
Initially focused on Nigerian startups, Ventures Platform has expanded its reach to South Africa, Zambia, and Egypt. The firm is also working to balance the fund’s lifespan with the long-term needs of high-potential startups by providing targeted follow-on funding.
IFC’s Broader Commitment to African Venture Capital
The IFC continues to play a key role in fostering African venture capital growth. Other recent investments include:
- $6 million to Flat6Labs’ $85 million Africa Seed Fund, which supports early-stage companies.
- $6 million in equity to Lofty Alpha, a VC fund targeting early-stage African tech startups.
- $5 million commitment to Equator Africa Fund I, marking IFC’s entry into climate tech venture capital.
- Investment as a limited partner in P1 Ventures’ first institutional fund ($50 million) and Janngo Capital’s second fund (€73 million/$78 million), which focuses on diverse founders and underserved regions.
As global capital markets tighten, the IFC’s investments underscore the increasing importance of local venture capital funds in bridging the funding gap for African startups.
