TLcom Capital, a venture capital firm focused on Africa, has closed its second fund, TIDE Africa II, at $154 million. This makes it the largest early-stage VC fund dedicated to technology startups in Africa.
The fund will invest in seed and Series A companies across various sectors, with a focus on Sub-Saharan Africa and Egypt. TLcom Capital plans to use the funds to support talented entrepreneurs and high-growth startups that are tackling Africa’s biggest challenges.
This new fund doubles the size of TLcom Capital’s first fund and has attracted participation from both new and returning investors.
The firm is focused on providing early-stage funding and supporting portfolio companies throughout their growth journey.
TLcom Capital has a portfolio of African startups, including uLesson, Andela — one of Africa’s six unicorns, Autochek, and Pula. The firm currently has over $300 million under management and is actively expanding its team across Africa.
Maurizio Caio, Founder and Managing Partner at TLcom Capital, says “TLcom now counts among a small number of venture capital firms that have raised multiple substantial funds for technology in Africa. This is a testament to the quality of our team and the trust we’ve established with our limited partners. It’s also a major endorsement of our long-term view on Africa’s massive upside”.
“We are maintaining the same investment strategy for TIDE Africa Fund II as we had for our first fund, which made over 80% 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 realizing 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,” says Ambroise Fayolle, Vice-President 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.
“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 capitalize average on Africa’s considerable economic potential,” says Najada Kumbuli, Vice-President & Head of Investments, Visa Foundation.
“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”.
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.
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