By Adedapo Adesanya
Africa-focused venture capital firm, TLcom Capital, has announced the final close of TIDE Africa Fund II, its second fund for technology in Africa, valued at $154 million.
The oversubscribed round confirms the firm’s status as Africa’s largest Seed and Series A investor and accelerates the firm’s mission to partner with elite founders to tackle Africa’s biggest and most complex challenges with innovative solutions that will unlock massive value in the continent’s critical sectors.
The fund at more than twice the size of TLcom Capital’s first fund saw participation from several new, high-profile LPs alongside returning LPs from the firm’s first Africa- focused fund, TIDE Africa Fund I, closed in 2020. These include the European Investment Bank (EIB), Allianz and DEG Impact’s joint venture, AfricaGrow, Visa Foundation and Bertelsmann.
TLcom Capital will also maintain its early-stage, multi-sector focus and expand its mandate beyond Sub-Saharan Africa to Egypt.
With its new fund, TLcom Capital plans to deploy significant additional capital into female-founded African tech startups, building on the firm’s June 2022 co-investment commitment of $2 million to FirstCheck Africa, a female-focused pre-seed fund. TLcom Capital’s commitment to gender balance is reflected in its majority-female partnership and investment committee.
According to a statement shared with Business Post, the fund has already made its first investments in South Africa and Egypt with LittleFish, a software company enabling payments and banking products for retail-focused SMBs, headquartered in Cape Town, and ILLA, a middle-mile logistics platform headquartered in Cairo.
Speaking on the development, Mr Maurizio Caio, Founder and Managing Partner at TLcom Capital, said there will be no core changes to its investment strategy as it will make initial investments of $1 million to $3 million, maintaining significant follow-on capacity to support strong portfolio performers into their growth stages, where the fund continues to see massive upside potential.
“We are maintaining the same investment strategy for TIDE Africa Fund II as we had for our first fund, which made over 80 per cent of its investments at Seed or Series A. With this final close, we’re thrilled that TLcom is in an even stronger position to continue to partner with Africa’s most talented entrepreneurs from early in their company-building journeys. We’re also excited to spend more time in the Egyptian ecosystem, co-investing alongside the most active local funds. TLcom is well on its way to realising our ambition of becoming Africa’s most sought-after early-stage VC and a truly pan-African firm.”
Since TLcom Capital announced TIDE Africa Fund II’s first close in January 2022, the firm has also significantly expanded its team, adding investment and operational capacity by doubling its headcount to 15 employees, including new investment professionals in Nigeria and Kenya.
“Across Africa, access to capital remains limited, especially for early-stage startups,” said Mr Ambroise Fayolle, Vice President and Head of Investments at the European Investment Bank. “At the same time, a young, technology-savvy population provides fertile ground for young companies. Africa’s startup ecosystem has the potential to drive inclusive economic growth and foster positive social change, which the EIB is happy to support. Through our investment in TLcom’s TIDE Africa II Fund, we expect to build and expand on the success and impact of the first TIDE Africa Fund, delivering much-needed capital to the most promising high-growth companies.”
Adding her input for Visa Foundation, Ms Najada Kumbuli, Vice President & Head of Investments, Visa Foundation said, “Our investment in TIDE Africa Fund II demonstrates our dedication to helping build strong economies where businesses can prosper and generate substantial financial and impact returns. We are impressed by TLcom’s track record of supporting visionary entrepreneurs in developing high-growth business models that can capitalise on Africa’s considerable economic potential.
“The firm’s alignment with Visa Foundation’s mission reinforces our confidence that, through this partnership, our capital will help create the next generation of successful and diverse entrepreneurs that will shape the future of the continent.”
Modupe Gbadeyanka