August 1, 2022

Black-Owned VC Closes Its $300M Second Fund For African Startups

Africa-focused VC, Oui Capital, closed its $300 million second fund, Capital Mentors Fund II, targeted at supporting pre-seed and seed stage businesses. 

The funding round included investors, D Global ventures, Angur Nagpal’s Vibe Capital, One Way Ventures, and Ground Squirrel Ventures. 

Oui Capital, founded by Olu Oyinsan and Francesco Andreoli, launched its first $10 million fund in 2018. The investment firm aims to bridge the gap between high-growth technology startups in sub-Saharan Africa. It is on a mission to become the first “yeses” entrepreneurs hear as they embark on their startup journey. 

“We go the extra mile with founders whom we partner with, and this is why we maintain a relatively smaller portfolio compared to many seed funds. There is a critical distinction between the responsibilities of a VC as an investor and as a fund manager,” Olu Oyinsan, managing partner of Olu Capital, in an interview with TechCrunch. 

“Being an effect fund manager puts the fiduciary responsibility on you to know when to stop devoting scare resources to problems that might prove too difficult to fix and dedicate these resources to higher-performing companies in your portfolio to minimize losses and maximize investor value,” 

The early-stage venture capital firm closing its second fund will enable the company to enhance further its ability to invest and support African businesses. The firm has made 18 investments in African companies, including TeamApt, MVX, Akiba Digital, Duplo, Ndov, Intelligra, Aifluence, and Pharmacy Marts. Each company dominates different sectors, including fintech, e-commerce, healthcare, enterprise software, and logistics.

According to the outlet, Oui Capital hopes to use the new fund to invest up to $750,000 in businesses to help expand its current portfolio. The firm also aims to go beyond its targeted goals by leading more deals across the ecosystem. 

Kumba Kpakima

Kumba Kpakima is a reporter at POCIT. A documentary about the knife crime epidemic in the UK got her a nomination for the UK's #30toWatch Young Journalists of the Year.