Pan-African Venture Capital Firm Verod and Kepple Closes Its First Fund at $60 Million
In a significant development for the African startup ecosystem, Verod-Kepple Africa Ventures (VKAV), a pan-African venture capital firm, has closed its first fund at $60 million. This milestone marks a major achievement for VKAV, which plans to invest in up to 21 growth-stage companies across the continent.
New Investors Inject Fresh Capital
The latest funding round follows fresh backing from new investors, including Nigeria’s SCM Capital (formerly Sterling Capital Markets Limited), Taiyo Holdings, and C2C Global Education Japan. This influx of capital adds to the fund’s existing commitments from Japanese institutional investors such as SBI Holdings, Toyota Tsusho Corporation, Sumitomo Mitsui Trust Bank, Japan International Corporation Agency, and the Japan ICT Fund.
Addressing a Critical Gap in Growth-Stage Capital
The closing of VKAV’s first fund is significant, given the current investment downturn. As Ory Okolloh, a partner at VKAV, noted, "Over the last few years, we have seen a growth in pre-seed and seed funds, but there are not enough funds at the growth stage of investing to get these companies to the next level." This gap is particularly pronounced for Series A and B startups, which often require more institutional support to scale.
The Verod-Kepple Advantage
VKAV’s unique approach lies in its collaboration between Verod Capital, a private equity firm, and Kepple Africa, a Tokyo-based venture capital firm. This joint venture allows VKAV to offer hands-on support to portfolio companies, including operational best practices, improved governance structures, and guidance on navigating complex macroeconomic environments.
Investment Strategy
VKAV’s investment strategy focuses on backing exceptional founders with meaningful investments that enable them to thrive. The fund targets growth-stage companies across various sectors, with a focus on those demonstrating significant potential for scale.
Learning from Japan’s Economic Transformation
Okolloh emphasized the importance of learning from Japan’s economic transformation and collaborating with investors from a market where they can see economic transformation in their lifetime. "This experience is critical for us to learn, partner, share, and exchange ideas with a different part of the world," she noted.
Africa-Focused Funds Find Their Feet Amid Downturn
Despite the current investment downturn, Africa-focused funds like VKAV are finding their footing. These firms are well-positioned to capitalize on the continent’s growing startup ecosystem, which is driven by innovation and entrepreneurial spirit.
Conclusion
VKAV’s $60 million fund closure marks a significant milestone for the pan-African venture capital firm. With its unique approach and focus on growth-stage companies, VKAV is poised to make a meaningful impact on the African startup ecosystem. As the fund continues to invest in exceptional founders across various sectors, it will be exciting to see the success stories emerge from this partnership.
Related Topics
- Africa
- Startups
- VC Fund
- Venture
About the Author
Annie Njanja is a reporter for TechCrunch, covering startups and tech news in Africa. She has experience in technology, business, and health reporting and has written for multiple outlets including the Thomson Reuters Foundation, East Africa’s economics paper Business Daily, and the Daily Nation.
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Reach out to Annie Njanja via email (annie.techcrunch@gmail.com) with tips or story ideas.
