A Venture Capital firm is a firm that funds or invests in a business or startup that has promising market acceptance and growth in exchange for equity.
This simply means that the money venture capital firms give to a startup is to buy a certain percentage of ownership of that business.
These investments by venture capital firms are really important to startups around the globe, in Africa, there are venture capital firms that are quite outstanding.
Listed below are some of the top venture capital firms in Africa;
Here are top Venture Capital firms in Africa:
Kalon Venture Partners
This firm invests in the growth capital of business innovations with high growth rates in the form of equity. They build the portfolio of these startups before existing.
Kalon Venture Partners invests mostly in businesses in South Africa first and helps them break into the international market. They provide hands-on support and have some criteria before they can invest in a business.
Some of these criteria include, the business must have a strong management team, scalable business model, high gross margins and potential for recurring revenue, a strong competitive position within their targeted sector and a unique product offering.
This is a venture capital firm that is devoted to supporting startups with innovative and creative business models.
Novastar operates as a venture capital manager, they guide the entrepreneurs on how to generate returns.
Novastar supplies funds and assets to innovative startups They have supported business around the globe, Africa, Asia, and even the United States of America.
In providing this support, Novastar moves efficiently as they have proven over time.
This Venture Capital firm provides rounds of Capital funding required for each growth phase of a startup.
Providing up to $250,000 for startups in their initial stage and constantly providing capital as growth continues.
The Vantage Capital firm was founded in 2001, so far, they have invested in over twenty-five businesses and have exited from six of such companies.
The firm has various divisions under its umbrella that work almost independently, theirs the mezzanine division and GreenX division.
The Mezzanine division of Vantage Capital since 2006 has made up to thirty investments in various funds and the GreenX division of Vantage Capital has invested in more than twelve senior investments.
Vantage Capital also trains and mentors people who were formerly disadvantaged and communities who are underprivileged. The firm has previously sent donations to homes for children too.
This venture capital was founded in 2001 and has its headquarters in Johannesburg, South Africa.
Convergence Partners have three areas of focus in their investment management plans.
These areas are telecommunications, media and technology. Convergence Partners are one of the top tech investors in Africa as they invest in any innovative startup around tech such as Health Tech, Industrial Tech.
Convergence Partners also impacts the startup with skills, experience and provides funds to aid the acceleration of infrastructural development in ICT, access to broadband internet services and communications access.
IDF Capital Partners
This venture capital firm is owned and mainly run by women and is an associate of Identity partners.
IDF Capital was founded in 2008 with the mission of providing both funds and enabling products to support entrepreneurial Small and Medium Enterprises.
This aid enables the business to grow both operationally and financially thereby strengthening sustainability.
There are still other Venture Capital Firms in Africa doing amazing feats in helping businesses grow and becoming financially independent.
About the Author
Chibuzor Elizabeth Chijioke a graduate of Abia State University is a Nigerian-based entrepreneur and content writer. She trained as a digital marketer at Innovation Growth Hub. She is committed to teaching people how to apply technology to better their lives and businesses. She spends her leisure reading sci-fi and fantasy novels.
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