On Wednesday, one of Africa’s oldest venture capital firms, LoftyInc Capital, announced a $43 million first close for its new LoftyInc Alpha Fund. This fund helps late-seed and Series A entrepreneurs in Nigeria, Egypt, Kenya, and Francophone Africa.
LoftyInc Alpha Fund focuses on Series A, late-seed
The LoftyInc Alpha Fund marks a strategic shift from pre-seed and seed investments to focusing on late-seed and Series A startups. This move aims to address the funding gap that many African startups face when transitioning from seed to Series A stages.
Idris Ayo Bello, founder and managing partner of LoftyInc, noted, “We’ve seen many promising startups struggle to bridge the gap between seed and Series A. With this fund, we’re positioning ourselves as the partner that helps them scale and reach their next level of growth”.
The fund has attracted diverse investors, including sovereign wealth funds, development finance institutions (DFIs), US family offices, and regional investment bodies. Notable investors include Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA), Tunisia’s Anava Fund of Funds, FMO, Proparco with FISEA, the International Finance Corporation (IFC), AfricaGrow, and First Close Partners.
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LoftyInc fund targets Africa’s everyday reach
LoftyInc Capital’s new fund will focus on sectors that drive Africa’s “everyday economy,” such as fintech, logistics, health tech, retail, climate tech, and deep tech. The firm has backed notable startups like Moove, Thndr, and OmniRetail. With this fresh capital injection, LoftyInc aims to help more startups survive and thrive in these sectors.
Farid Fezoua, IFC’s Global Director for Disruptive Technologies, highlighted the fund’s potential to strengthen Africa’s venture capital ecosystem and attract later-stage investors to underserved markets like Francophone Africa.
LoftyInc, which has previously sold 14 early investments, including Flutterwave and Reliance Health, is preparing itself for quicker exits to Series A investors by concentrating on late-seed and Series A stages. The firm added Mariam Kamel and Kevin Simmons as general partners to complement its expanding regional emphasis and strategy.