The investment vehicle will focus primarily on fintech, healthtech, and edtech startups. In its initial stage, it will make direct and indirect equity commitments in startups in Nigeria and Ghana.
VC fund Constant Ventures announced, Monday (May 30), a US$100 venture capital fund for investment in West African tech startups. The new investment vehicle will initially focus on startups specializing in financial inclusion, education, and health, primarily in Nigeria and Ghana.
“We are very excited to be announcing this fund today. It has been a decade in the making, the result of deep-dive research and due diligence in anticipation of this moment when we knew that advances in information technology would enable start-ups across West Africa to commercially address real societal needs,” indicated Ike Echeruo, co-founder and Managing Partner of Constant Ventures.
“We have looked at what has worked in other geographies. Now, refined and optimized for Africa, we have modeled a fund to invest in businesses that will both improve the lives of millions of people and deliver outstanding returns for investors,” he added.
Recent progress in the tech and the digital sectors offer an opportunity to develop and scale solutions that address the everyday challenges faced by most Africans. Constant Ventures intends to support West African startups are addressing those challenges with direct or indirect equity participation.
In its release announcing the new investment vehicle, Constant Ventures indicates that it targets a return on investment (ROI) of 5 to 10 times the capital invested. However, the amounts that will be committed to each startup were not stated, nor were the number of beneficiaries.
To date, Constant Ventures claims to have invested US$3.2 million in 9 startups in Nigeria. Its choice of West Africa as the beneficiary region is not fortuitous. In 2021, the region attracted the highest volume of venture capital deals in Africa. It was also the second region with the highest share of VC deals by value, according to the Venture Capital in Africa Report published in April 2022, by the African private equity and venture capital association (AVCA).
Chamberline MOKO
• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...
In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...
• BOAD releases CFA10 billion ($17.8 million) to support Boungou and Wahgnion gold mines.• Burkina F...
Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...
• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo • License award comes on stream as part of the...
• The International Monetary Fund (IMF) has authorized a $262.3 million disbursement for Ethiopia, taking total payments under Extended Credit...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boosting regional trade and investment• Part of broader...
• IFAD initiates a program worth $358.26 million to bolster dairy sector in Kenya, Rwanda, Tanzania, and Uganda • The program, called DaIMA, aims...
The Gerewol tradition is a fascinating ritual celebrated by the Bororo Fulani, a nomadic community primarily located in Chad and Niger. This annual...
In northern Ethiopia, in the Tigray region, lies Axum (also spelled Aksum), an ancient city that once stood at the heart of one of Africa’s most powerful...