This brings the firm’s total assets under management (AUM) to $250 million, a commendable achievement for the Washington, D.C.-based investment firm.

Founded in 2016, AAF has built a reputation for identifying early winners in global tech and innovation. The firm has made 138 direct investments and supported 39 emerging managers across 43 fund vintages. 

Its portfolio has already produced five unicorns, Jasper, Current, Flutterwave, Drata, and Hello Heart, alongside 20 successful exits, including TruOptik, MoneyLion, Even Financial, and Portfolium, with a combined enterprise value of $2 billion.

The Axis Fund represents AAF’s fourth vintage and is anchored by Mubadala Capital, as well as a network of family offices spanning the U.S., Europe, the Middle East, and North Africa. 

Other backers include general partners from major U.S.-based asset management firms, a multi-billion-dollar venture capital firm, and a publicly traded company.

What makes The Axis Fund unique is its data-driven strategy. AAF is leveraging its limited partner (LP) relationships with emerging managers to gain access to private market intelligence that isn’t publicly available on platforms like Crunchbase or CB Insights. 

This “data licensing” approach allows AAF to identify promising companies before they hit mainstream visibility.

So far, the fund has already invested in 25 pre-seed and seed funds and made five direct investments into early-stage and growth companies. Collectively, the fund’s underlying managers have exposure to around 800 venture-backed companies formed between 2021 and 2025.

Speaking on the fund’s approach, Kyle Hendrick, general partner and managing director, said: “Over the past decade, we have found that the richest dataset of private market companies at the earliest stages of their formation is accessed only through LP checks in emerging managers.

“With The Axis Fund, we are combining our fund-of-funds investing track record along with our Seed track record under one fund umbrella to generate the best risk-adjusted return for our LPs.”

Omar Darwazah, also general partner and managing director, described the model as both broad and selective: “Our two-pronged investing strategy allows our LPs to access a beta product, through the indexing of emerging managers, and an alpha product, through the picking of companies to back at the early stage.

“This strategy allows us to identify signal from noise and increase our probability of backing outliers – fund returners, 10x cash-on-cash returning companies and Seed to Unicorn investments.”

AAF’s model has earned it deep trust among partners and founders alike. Suzanne Fletcher, founder and general partner of Zelda Ventures, commended the firm’s hands-on partnership style:

“The AAF team has been an exceptional partner to Zelda Ventures, both as an investor in the firm’s Fund 1 and as a collaborative co-investor. They not only supported us early but have also continued to engage meaningfully, from investing alongside us in Okahu to flagging opportunities like Originalis.

“AAF’s approach of backing managers and then investing alongside them truly delivers on their mission to build enduring partnerships.”

Similarly, Zaid Rahman, founder and CEO of Flex, noted AAF’s long-term engagement:

“AAF has been an exceptional partner to us. They began building a relationship with me and the company nearly two years before investing. Flex was originally sourced through their LP check in 305 Ventures, and since then, AAF has participated in our Series A and every subsequent financing round.

“We’re excited to continue working with them as both capital formation and business development partners, leveraging their global LP network and deep connectivity across the MENA region.”

AAF’s earlier funds, a $25 million Fund I (2017), a $39 million Fund II (2021), and a $32 million proprietary fund-of-funds vehicle, have always ranked in the top decile for Net TVPI compared with benchmarks from Cambridge Associates and Carta.

With The Axis Fund focused on early-stage startups, AAF is doubling down on its core belief that access and insight drive performance in private markets. Its blend of fund-of-funds and direct investment strategies will support early-stage capital deployment, encompassing patience, information depth, and genuine partnership.

The post AAF Raises $55 Million to Back Early-Stage Startups, Emerging Fund Managers appeared first on Tech | Business | Economy.

The fund, named Accion Venture Lab Fund II, LP, is managed under Accion Impact Management’s venture strategy, now rebranded as Accion Ventures. 

It is the continuation of a decade-long initiative to back startups providing affordable and inclusive financial tools. Since 2012, the strategy has invested $59.4 million in 76 companies across 39 countries, with 13 successful exits.

The new fund brings in commitments from a mix of old and new investors, including development finance institutions, family offices, asset managers, foundations, and financial service firms. Among them are FMO, Proparco, ImpactAssets, Ford Foundation, MetLife Asset Management, and Mastercard Worldwide.

Some of the first investments under this fresh round have already been made. PaidHR in Nigeria, Foyer in the United States, FinFra in Indonesia, and Flowcart in Kenya are among the startups receiving early backing.

Accion Ventures is focusing on fintech solutions that can make a difference for the 1.6 billion people globally who remain unbanked or underbanked, and the $5.7 trillion annual credit gap faced by small businesses. 

The fund is designed not only to provide capital but also to give startups operational support, governance guidance, and connections to networks that are often closed off to early-stage firms.

Michael Schlein, president and CEO of Accion, explained the rationale behind the move:

“With the huge uptick in mobile technologies in emerging economies, we see a significant opportunity to connect many small businesses and low-income consumers to the digital economy for the first time. Leveraging third-party capital to deliver social and financial objectives is a critical part of Accion’s strategy. 

“This fund seeks to support the growth of early-stage, disruptive companies providing high-quality, affordable financial services that can help reduce poverty and create opportunity for millions of people globally.”

Rahil Rangwala, managing partner, Accion Ventures, emphasised the role of innovation in the fund’s direction:

“We are excited to support the growth of incredible innovators across the globe in early-stage fintech who are using new technology ranging from Gen AI to satellite imagery and embedded finance, leveraging the power of mobile phones and the internet to deliver sustainable financial returns, alongside real world impact for underserved people globally. 

“We have a strong pipeline and team in place and will continue to leverage our networks to deliver quality, affordable financial services for small businesses and consumers globally.”

Managing Partner, Amee Parbhoo, noted how Accion Ventures plans to use the fund:

“With this new funding, we will build on our success to date, finding and scaling some of the world’s most innovative fintech companies that provide a full suite of financial products and services to small businesses globally. 

“Our global portfolio and local approach mean we can spot and respond to trends faster, driving local innovations on a global scale, and share learnings across geographies. We aim to be one of the first institutional checks a company receives and will continue to engage early, while maintaining sufficient reserves to back our winners as they scale.”

Accion Ventures operates across Africa, South and Southeast Asia, Latin America, and the United States. Its strategy is to identify startups with a deep understanding of their local markets, then provide the financial backing and strategic input needed to grow beyond their immediate environment.

Accion fintech fund supports the growing momentum of inclusive fintech as both a social need and a market opportunity. The venture aims to back innovators capable of bolstering financial access on a global scale.

The post Accion Closes $61.6m Fund to Back Early-Stage Fintechs Targeting Underserved Communities appeared first on Tech | Business | Economy.

Having received over 700 applications, with 141 of those meeting the vetting criteria, MIC ultimately narrowed down the applications to a list of top ten finalists, who were invited to pitch their funding request to a panel of business experts.

With the first two investees now successfully funded through MIC Khulisani Ventures, Thato Ntseare offers some advice for other aspirant start-ups on how to set up your start-up business for success in attracting investors.

The idea of venture capital involves investing in early-stage businesses that are premised on being innovative in one form or another, for example by developing bespoke technology, or making use of existing technology in a unique way, or uncovering new markets by creating demand where there once was none

It’s important to realise that when a business is still young, it can be difficult to evaluate. Despite the growth experienced, there remain many unknowns about the future prospects of the business.

The founders of young businesses are protective over them and often place high value on them based on their potential. However, founders need to understand that potential investors will come in, critique and value their business based on what it is currently.

If they are interested and believe in the vision, they will invest in the business in exchange for percentage ownership of the business.

When small fish speak to bigger fish…

Early-stage startups (usually post revenue, but pre-profit) present a higher risk to Venture Capital investors. As a result, the entrepreneur usually must be prepared to offer a higher equity stake for a given funding amount (or less funding). Investors must work on the information they have at hand and what they can reliably test, rather than what could potentially come to fruition in the future.

Therefore, there may be an initial mismatch between the desired amount of investment capital when compared to the amount of money that the burgeoning business is actually able to attract.

It is fair to say that South African investors are typically more conservative than many of their peers elsewhere. Therefore, a young business requesting venture capital must be able to show that it has revenue traction, in other words it needs to be able to prove that it can capture customers monthly and grow the customer base at an accelerating rate.

In short: If an investor, decides to give you the venture capital you require, they need to believe that you have a market, and that you can execute on it.

Why now?

It is also important for the small business to be able to give the investor comfort around the question of: ‘Why now?’ – meaning: what is it about the idea that will work at this precise moment?

For example, ask yourself whether online food delivery services could have operated profitably 15 years ago? What kind devices did we have? How comfortable were we as society with online payments? How fast were our internet speeds to cater for efficient service delivery?

This is an excellent example of how critical the ‘Why now?’ question is: it provides a platform for the young business founder to prove their own beliefs to their potential investors. While there is certainly an element of luck and timing, being able to answer this question allows the founder to show the investor that they understand the market they are trying to enter, and that they are aware of both local and global trends and where market forces are going.

A comfortable response to the ‘Why now?’ shows the potential investor that the founder has applied their mind to the industry and shows critical thinking.

It also signals to the investor that the founder has their finger on the pulse of their industry and can identify far earlier whether the business needs to pivot.

The inevitable admin

Administration around the new business is especially important. Without data and information, the investor is unable to reliably understand where the business is headed, and how to grow it into the future.

The founder must be able to show key performance statistics, and the potential investor will base their critical analysis of the business on these (and other) specific operational metrics.

It is imperative to be able to manage the young business well, and this includes accounting software. Fortunately, a variety of relatively affordable accounting solutions are available. For a potential investor in an early-stage business, the primary focus is around the revenue growth: this shows that the business has customers who have bought into your solution. If it is growing, this means that the business is addressing a market, the size of which may still need to be determined but it is a start.

With regards to income statements, being profitable is not too important particularly for a start-up, as the founder reinvests all revenue back into the business to grow it. Flat growth, yet with increasing costs, represents a red flag.

From a balance sheet perspective, it will be dependent on the type of business. However, as a quick rule of thumb here, investors don’t like to see a complicated shareholder list with a variety of different instruments: it makes it more difficult to determine the ultimate shareholding of the investor, and many complicated instruments increase the risk that it may be diluted in future. As they say: too many cooks spoil the broth!

Investors will also not want to see too many loans. Given the early-stage nature of the business it is likely loans were obtained as growth capital, but often given how risky and early these businesses are these loans would be at high interest rates making them very expensive. Expensive debt burdens a growing business and the terms, depending on what they are can deter potential investment.

Maintaining necessary administration systems and processes is very important as it boosts investor trust and gives confidence that any investment will be administered effectively.

Research the required information

It is imperative to have an ‘investor data room’, meaning a storage space, preferably digital, where companies store information relevant to due diligences and other valuable data. This provides the potential investor with confidence that the business is well managed and reduces the time to approve investment as the information is readily available.

From the perspective of MIC Khulisani Ventures, whenever we are about to embark on a transaction, we ask the management to compile information such as marketing plans, addressable market size, competitor analysis, financial statements, financial forecasts, management accounts, biographies of the founders and so on.

It provides us with evidence that the founder has not only taken the time to understand and disseminate their market but also answered the ‘Why now?’ while building an efficient and robust administrative capability to relay the information.

Aesthetically pleasing

I advise any business to have a professional website that is functional, looks professional, offers a certain amount of information, and inspires confidence. You need to make sure your solution looks the part, even if it is not 100 percent perfect.

Moving forward with African solutions

When Khulisani Investment Ventures was first launched, to extend MIC’s core business of late stage investing and expand our investing mandate into the Venture Capital space, we were extremely pleased at the high number of applications we received, as well as the calibre of the applications.

With the programme being aimed at high-growth potential, innovative Black-owned businesses, it is certainly fair to say that there is significant innovation from Black-led businesses, and we want to give them a chance.

We are excited at being part of the groundswell to create African solutions for our people that are globally scalable and look forward to funding and growing more start-ups in the future.

The post ‘Shark Tank’ Tips: Sharp Advice for Business Startups on Attracting Venture Capital Investment | Thato Ntseare appeared first on Tech | Business | Economy.

This initiative, known as the Africa Ecosystem Catalysts Facility (AECF), is being rolled out in partnership with the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO).

Rather than imposing external models, Village Capital is embedding local entrepreneur support organisations (ESOs) directly into the investment process.

These ESOs, Reach for Change in Ghana, Africa Fintech Foundry and Fate Foundation in Nigeria, and Anza Entrepreneurs and Ennovate Ventures in Tanzania, are now recognised as venture partners under the AECF programme.

“This isn’t just about sourcing deals, it’s about making smarter, more informed investments by working alongside those already building and strengthening their entrepreneurial communities,” said Nathaly Botero, innovations manager at Village Capital.

The model relies heavily on the insider knowledge of these organisations, giving them a central role in identifying, evaluating, and co-investing in startups. By placing ESOs at the core of decision-making, Village Capital aims to overcome one of the biggest barriers African startups face, limited access to early-stage capital.

Less than 3% of global venture capital reaches the African continent, and many promising ventures never scale due to rigid investor frameworks, lack of tailored support, and high perceived risks. The AECF seeks to change that by leveraging local networks to find and support businesses that are often ignored by international funders.

The fund prioritises startups working in agritech, clean energy, the circular economy, and digital finance solutions. These areas are seen as essential for promoting financial inclusion and sustainable development, particularly among women and youth-led ventures.

This isn’t Village Capital’s first investment in Africa. In 2024, it committed $850,000 to two agritech firms, Kenya’s Aquarech and Nigeria’s Coamana, both tackling critical issues in food security and supply chain inefficiencies. Since its founding in 2009, Village Capital has helped over 1,800 startups secure upwards of $7 billion in follow-on capital.

Backing from FMO and RVO strengthens the AECF’s impact ambitions. FMO brings its expertise in market creation and impact investing, while RVO contributes its experience supporting youth entrepreneurship and ecosystem building across emerging markets.

The AECF also builds on Orange Corners Innovation Fund (OCIF), another initiative driving startup growth in Africa since 2020.

What sets this new fund apart is its decentralised approach. In treating local ESOs as co-evaluators and co-investors rather than just beneficiaries, Village Capital is banking on community-driven solutions to catalyse broader change.

The post Village Capital Targets African Startups with $4 Million Africa Ecosystem Catalysts Fund appeared first on Tech | Business | Economy.

The fund aims to support late-seed and early-growth startups in key African markets, including Nigeria, Egypt, Kenya, and Francophone Africa.

With over a decade of experience in venture capital, LoftyInc has built a reputation for backing some of the continent’s most successful startups, including Flutterwave, Andela, Wave Mobile Money, and Moove. 

The latest funding round brings in a diverse group of investors, ranging from African and international sovereign wealth funds to development finance institutions (DFIs), US family offices, and regional investment bodies.

Among the investors are Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA), Tunisia’s Anava Fund of Funds, FMO (the Dutch Entrepreneurial Development Bank), Proparco with FISEA, the International Finance Corporation (IFC), AfricaGrow (advised by DEG Impact GmbH), the Dutch Good Growth Fund (DGGF), and US-based First Close Partners. Additionally, several African high-net-worth individuals (HNIs) have committed capital.

The firm’s leadership comprises investors with a wealth of experience in venture capital and startup growth. Managing Partner Idris Ayodeji Bello has invested in over 100 startups across 25 markets, achieving 14 successful exits. 

General Partner Mariam Kamel brings investment banking and advisory experience, while Kevin Simmons has worked across three continents as an investor, founder, and operator. Together, they lead a skilled team spread across Africa’s major tech hubs.

LoftyInc Alpha Fund is designed to bridge the gap between early traction and scalable growth for startups. 

Beyond providing capital, the firm supports founders in tackling operational hurdles, securing strategic partnerships, and expanding into new markets. This approach is necessary in Africa, where startups find it hard to transition from seed funding to Series A investments.

“At pre-seed and seed, there’s a lot of hype, but by Series A, the questions investors ask are very different,” said Bello. “Our goal is to come in at seed, but our mandate is to help you get to Series A. We want to be the firm that gets startups over that hump.”

With Africa’s tech ecosystem evolving fast, LoftyInc is ensuring high-potential startups do not stall due to funding constraints. The firm plans to focus investments on sectors that drive Africa’s “everyday economy,” including financial services, logistics, health tech, retail, climate, and deep tech.

The venture capital firm has a strong record, with investments in companies like Uber-backed vehicle financing platform Moove, Egypt’s stock trading app Thndr, and B2B e-commerce platform OmniRetail.

With this latest fund, LoftyInc aims to continue impacting Africa’s startup sector, identifying high-growth companies, and creating long-term value for both startups and investors.

The post LoftyInc Closes $43 Million Fund to Back Africa’s Fastest-Growing Startups appeared first on Tech | Business | Economy.

General Partner at Aduna Capital, Surayyah Ahmad, co-managing the fund with Sanusi Ismaila, expressed enthusiasm about this initiative, emphasizing a zeal to identify and nurture exceptional opportunities in the region.

Aduna Capital’s investment strategy allocates 55.5% of its capital to startups in Northern Nigeria, leveraging the projected growth that positions Nigeria as the world’s 4th largest country by 2050. 

While maintaining a strong focus on the North, the fund will also channel investments to outstanding founders across the country and the broader African continent. Notably, the vision encompasses a dedication to achieving 50% female representation among the startups receiving backing.

Surayyah Ahmad, an experienced founder with a successful track record, brings a wealth of knowledge to this venture. Having founded the eCommerce startup YDS Online, which was later acquired in 2022, Ahmad has a deep understanding of the challenges and opportunities within the startup sector.

Her co-founder, Sanusi Ismaila, is a major figure in technology innovation in Northern Nigeria, having established Colab, the region’s largest innovation hub. Colab has been essential in nurturing startups and fostering tech talent, contributing to the emergence of successful ventures like Sudo and Payant.

Aduna Capital aims to redefine the investment space by shifting attention from Lagos, which currently hosts over 80% of Nigerian startups. Recognising the imbalance in investment distribution and the challenges faced by female founders, Aduna Capital aspires to bridge these gaps and be a catalyst for transformation in Northern Nigeria.

The fund will concentrate on pre-seed and seed-stage startups, with plans to invest in over 50 ventures in these early stages. Ahmad disclosed that investments ranging from $50,000 to $200,000 will be the norm, and the firm is open to occasionally writing angel checks to address the angel investing gap in the region.

Acknowledging the scarcity of exits in the market, Aduna Capital intends to exit investments at the Series A stage. However, Ahmad clarified that around 20% of portfolio companies would be retained, with provision for follow-on investments.

While details about the percentage of secured funds remain undisclosed, Ahmad confirmed that a substantial portion is ready for deployment, signaling the fund’s readiness to commence investments. In a unique approach, Aduna Capital will explore alternative models, accommodating regional investors uncomfortable with the traditional VC model, such as profit-sharing arrangements.

Aduna Capital’s ultimate goal is to foster innovation, inclusivity, and economic growth in Nigeria and beyond, creating a lasting impact on the African continent.

The post Aduna Capital Launches $20 million Early Stage Fund to Enhance Innovation in Northern Nigeria appeared first on Tech | Business | Economy.

Early-stage technology startups operating in Ghana, Nigeria, Senegal, Kenya, and South Africa stand a chance to participate in the competition, showcasing innovative businesses and entrepreneurial prowess. 

Benefits

The MEST Africa Challenge offers exceptional benefits to participating startups. The winner will receive a substantial equity investment of $50,000, providing crucial financial support to accelerate their business growth. In addition, the winner and other outstanding participants will gain access to MEST Africa’s global community and networks, unlocking valuable partnerships, mentorship, and investment opportunities. This platform catalyzes startups to unlock the next phase of their business growth and gain global recognition.

Building upon the success of the previous years, the 2022 MEST Africa Challenge crowned Kwely, a B2B e-commerce startup from Senegal, as the winner. Kwely’s groundbreaking solutions stood out among the fierce competition, and their success serves as an inspiration to entrepreneurs across Africa.

This year’s tagline, ‘Unlock Your Startup Potential’, resonates deeply with the vibrant technology landscape we are witnessing in Africa today. With the remarkable advancements in technology innovation and adoption across the continent, this year’s competition is poised to showcase groundbreaking ideas and solutions. I am confident that the MEST Africa Challenge will uncover exceptional startups that will shape the future and drive positive change in Africa and beyond,” said Ashwin Ravichandran, Portfolio Advisor and MEST Africa Challenge Lead.

Over the years, the MEST Africa Challenge pitch competition has garnered thousands of applications from across the continent, attaining global recognition and forging partnerships, while nurturing a thriving community of African tech founders. It has spotlighted and impacted the growth of winning startups such as Tanzania’s Kilimo Fresh, Ghana’s OZE, South Africa’s Snode Technologies, Kenya’s Waya Waya, Nigeria’s Accounteer, and reigning title holder, Kwely from Senegal.

Eligibility 

• Monthly Recurring Revenue (MRR): Your company should be generating a minimum of $5,000 in monthly recurring revenue.
• Funding Raised: Your cumulative funding raised should be $1 million or less.
• Years of Existence: Companies with a history of three years or less are eligible.
• Traction: A prerequisite of at least 6 months of consistent recurring revenue is required to demonstrate traction.
• Founding Team: Your team should consist of at least 2 founding members.
• Registered Location: While not mandatory, being registered in Delaware is preferred.
• Market Traction: It’s important to showcase traction in MAC Markets such as Ghana, Kenya, Nigeria, South Africa, and Senegal.

How to Apply

Are you an early-stage technology startup operational in Ghana, Nigeria, Senegal, Kenya, or South Africa? Then participate in the competition to scale your innovative business. Application deadline is on Monday, October 9, 2023.

The post Apply: $50k Equity for Early-stage Startups in MEST Africa Challenge appeared first on Tech | Business | Economy.