OpenseedVC, a new early-stage venture capital firm founded in 2024 by Maria Rotilu, a seasoned operator and investor, has closed its first fund at over $10 million.
Targeting tech startups across Africa and Europe, OpenseedVC focuses on investing in experienced operators and domain experts highlighting the role of founder experience in the success of startups.
The firm aims to be the first believer in experienced operators who are transitioning to become founders, providing early-stage investments of up to $150,000. This fund targets startups within sectors such as B2B software, artificial intelligence (AI), fintech, digital health, and the future of work.
Rotilu sees the importance of founder-market fit, asserting that operators who have been involved in the day-to-day operations of startups possess an almost unfair advantage in understanding and navigating their chosen markets.
The launch of OpenseedVC comes at a time when fundraising for African startups has become increasingly challenging. In 2023, funding for African startups fell by 33% compared to the previous year, totalling approximately $3.2 billion.
Despite these difficulties, Rotilu believes that strong companies are often born during tough economic times. “We want to be the first believers in these experienced operators, providing them with the capital and support they need from the start to the launch of their technology companies,” she said.
OpenseedVC is not just about providing capital; it also brings a network of over 50 seasoned operators to support new founders. These operators, who have extensive experience in areas such as software engineering, product development, and market strategy, will offer invaluable guidance to startups.
This network aims to address common challenges faced by new technology companies, ensuring they have the necessary resources and expertise to succeed.
The fund’s investment strategy is designed to create a diversified portfolio across geography, industry, and gender. Rotilu noted the importance of supporting female-led startups and achieving a balanced co-founding team composition.
This approach aims to enhance the overall impact and returns of the portfolio by tapping into a wide range of perspectives and expertise.
So far, OpenseedVC has made two investments: one in a stealth AI-enabled supplier dispute resolution software based in the UK, and another in Intron, a speech-to-text transcription model tailored for underserved accents in Africa.
Over the next five years, the fund plans to back at least 60 startups, operating with an open application process that allows founders to apply without needing an introduction.
Rotilu’s background as an operator and investor gives her a unique perspective on the needs of early-stage startups. Before founding OpenseedVC, she held key roles at Uber and Branch in Nigeria, scaled tech companies to millions of users, and managed the Oxford Seed Fund.
Her vision for OpenseedVC is to leverage this experience to support operators in Africa and Europe, helping them build successful, scalable businesses.
With its first close well into the millions, OpenseedVC continues to fundraise and aims to reach the final close within a year.
Comments 1