Cape Town-based venture capital company 4Di Capital is launching its third venture fund to invest in promising African entrepreneurs from seed to Series A.
4Di Capital, founded in 2009, is a leading venture capital firm in Southern and Eastern Africa. The organisation is noted for its entrepreneurial leadership team, which has built companies.
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Successful Startups Backed by 4Di Capital
In 2011, the venture capital company opened its first angel fund. In 2016, it opened its first legal venture fund. The SA SME Fund gave a lot of money to the second venture fund, which started in 2019. This fund has been funding a variety of South African and other African startups, making 4Di more focused on early-stage businesses.
Many South African companies, such as Snapt, LifeQ, Sensor Networks, Aerobotics, Lumkani, Zoona, InvestSure, and Tagmarshal, have received large amounts of money from 4Di Capital over the years. In addition, the company has grown its reach in East Africa by investing in Kenyan businesses like Wasoko and Flare.
Co-founder general partner Justin Stanford discussed 4Di’s strategy on a media podcast. In addition to offering the first institutional investment, 4Di advises and mediates entrepreneurs.
Stanford recommended one or two additional investments before the second venture fund commits after 10 firms. FourthDi Capital may raise another venture fund.
Stanford is optimistic about the fundraising environment, pointing out that it has improved slightly since last year despite the global “funding winter” affecting the investment atmosphere. Although he admitted problems, he was sure the market would slowly open again.
As investment models in Africa become more popular with investors around the world, 4Di Capital plans to investigate more foreign fundraising possibilities. The company mostly used local sources in the past, but now it is seeing more interest from buyers outside the country.
Stanford thinks Limited Partners (LPs) will be interested in 4Di’s well-known image and track record with the 2016 and 2019 funds, which show good performance and well-known client companies. To raise money for its planned third venture fund, the company will likely use its track record of helping businesses succeed to its advantage.
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More info on 4Di Capital
South African venture capital firm 4Di Capital invests in early-stage software firms. It supports innovative entrepreneurs in fintech, health tech, agritech, and education technology.
Through its extensive network, the business helps entrepreneurs expand by providing funding and strategic advice. 4Di Capital consistently finds high-potential startups, helping Africa’s innovation sector develop.
Its investing strategy promotes sustainable growth and meaningful solutions through technology innovation to boost economic progress. AI-driven agritech startup and health data analytics firm LifeQ are among the firm’s investments. 4Di Capital’s financial backing and hands-on mentoring help entrepreneurs develop and fulfil their potential.