• Dutch Good Growth Fund invests $3 million in First Circle Capital
• FCC backs early-stage African fintech startups continent-wide
• Fintech leads 2025 funding with $769 million raised

The Dutch Good Growth Fund (DGGF), a Dutch public fund that supports local entrepreneurs in developing countries and emerging markets, announced on Sunday a $3 million seed investment in First Circle Capital (FCC).

FCC is a fintech-focused fund led by an all-female team. It invests in African fintech startups at the pre-seed and seed stages through a dedicated pan-African vehicle. The fund backs early-stage companies developing solutions that expand access to financial services for underserved communities and strengthen African financial markets.

Fintech: A Pillar of African Venture Capital

The investment comes amid a shifting sector landscape. According to Partech’s 2025 report on African tech funding, fintech remains the continent’s leading venture capital sector. African fintech companies raised $769 million in 2025, accounting for 25% of total equity funding.

Fintech’s share has declined compared with previous years, but it remains dominant. Other segments are gaining ground. Cleantech raised $550 million, while healthtech attracted $215 million. For the first time since 2022, several non-fintech sectors each exceeded $200 million in equity funding, reflecting a gradual broadening of Africa’s venture capital base.

Against this backdrop, DGGF’s decision to back a fintech-focused fund underscores continued European public-sector support for financial innovation in Africa. Despite growing diversification, digital financial services remain central to the continent’s economic transformation, helping formalize transactions and bring more people into the financial system.

Long-Term Financing

First Circle Capital provides more than capital. The fund supports portfolio companies in strengthening governance, improving data management and preparing for future funding rounds. This approach addresses a structural challenge in African venture capital, where access to follow-on financing remains limited for many startups.

Beyond funding, the initiative highlights the strategic importance of nurturing early-stage fintech firms in African economies. These companies expand access to credit, digital payments and insurance. Early backing allows investors to shape business models and support sustainable growth from the outset.

Chamberline Moko