Venture Capitalist firm focused on Africa’s smart and innovative startups, TLcom Capital, has announced the first close of its $150,000,000 for its second pan-African tech fund to be invested across 20 African seed and series A startups.
The first close of $70,000,000 is almost the equivalent of the TIDE Africa Fund raised by TLcom Capital, its first fund used to achieve its first close in 2017 and final close in February 2020.
The second fund, projected to be the largest fundraising yet for the two-decade-old firm, which has $350,000,000 AUM across Africa and Europe with offices in Lagos, Nairobi and London, is expected to reach a second close later this year. It will also position the investor to become one of the largest independent VC firms fully dedicated to the continent.
Following TLcom Capital’s $71,000,000 TIDE Africa Fund raised in 2020, invested in 12 African startups; seed to Series B stages, the firm was only able to invest in 11 startups including Andela, Ajua, Autochek, Ilara Health, Kobo360, Okra, Pula, Shara, Terragon Group, Twiga and uLesson.
TLcom Capital’s average investment per startup is around $6, 000,000; but this number varies according to investments made in its portfolio companies. Andela’s $40 million Series C was TLCom’s first African investment. This was way before its first fund closed in 2020, and is the latest stage at which TLcom invested; Twiga’s $20 million Series B in 2019 is another.
Imminently, TLCom Capital targets adding an extra 20 early-stage startups to its portfolio, with investments ranging from $500,000 to $15,000,000.
The firm will most likely tailor its fund structure like its first: part of the capital for early-stage startups, while the rest will be for new or follow-on rounds of companies at growth and late stage. Its first check from the second fund was a lead investment in SeamlessHR.
So far, the 12 companies invested in by TLcom Capital are based in Nigeria or Kenya. The Venture Capitalist firm will expand focus to Egypt while making more investments across East and West Africa, with the new fund.
TLCom Capital focuses on sectors such as the fintech, mobility, agriculture, healthcare, education and e-commerce sectors, but is willing to invest in startups venturing into web3, crypto and DeFi, as well as newer industries which include African startups playing in the same field as other regions.