Uncap Unveils New $33M African Fund That Offers “Unconventional” Financing
Uncap has launched Unconventional Capital, a new €30 million (USD 33.4 million) fund to provide early-stage African small and medium-sized enterprises (SMEs) with alternative financing.
Backed by major institutions like the Bill & Melinda Gates Foundation and the Bayer Foundation, the fund will focus on high-impact sectors such as agriculture, climate resilience, and financial inclusion, driving economic development across Africa.
A New Approach to Financing
Based in Munich and Nairobi, Uncap has been working to close the capital gap for African businesses since 2019, using a remote, data-driven approach.
The new Unconvential Capital fund offers non-dilutive, revenue-based financing, providing businesses with capital without requiring them to give up equity or ownership.
“Launching Unconventional Capital is a pivotal moment for us,” said Uncap’s Investment Principal, Esther Ndeti, who will lead the fund alongside CEO Franziska Reh. “This fund will address capital gaps for early-stage SMEs as they scale, deepening our impact.”
Global partnerships and new standards
The fund is backed by key global partners, including SAIS, an ag-tech initiative funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), and O-Farms, a circular agriculture program financed by the Ikea Foundation.
These collaborations will help SMEs in critical sectors access the financial resources they need to grow.
Uncap also recently launched a stand-alone SaaS platform, Level, to provide investment management tools for African funders and accelerators. The new Unconventional Capital fund marks a strategic step in separating Uncap’s financial activities from its technology offerings.
“As we launch the fund, we’re not just aiming to support more businesses but to set new standards in the industry for innovation and inclusion,” Ndeti continued. “Here’s to the future – one that’s even brighter and bolder.”
Image credit: Unconventional Capital
