• Monex Ventures and Uncovered Fund launched a $20 million investment fund for early-stage startups in Africa, the Middle East, and North Africa.

• The fund will target four sectors: finance, logistics, mobility, and sustainable agriculture, with investments up to $2 million per company.

• The move comes as African startup funding shifts, with debt accounting for 31% of the $3.2 billion raised in 2023.

Monex Ventures and Uncovered Fund announced a $20 million joint investment fund to back African startups and strengthen ties between African and Japanese businesses.

The venture capital arm of Japan’s Monex Group partnered with Uncovered Fund, led by CEO Takuma Terakubo, to establish the Uncovered Fund Monex Africa Investment Partnership. Multiple media outlets reported the launch on Friday, August 22, 2025. The fund is valued at 3 billion yen, or roughly $20 million, and will invest up to $2 million in early-stage startups in Africa, as well as in companies in the Middle East and North Africa.

The two Japanese investors want the fund to do more than provide financing. They designed it as a bridge linking African startups with Japanese companies, as Japan searches for growth outside its shrinking and saturated domestic market.

The partnership identified four priority sectors where technology and Japanese expertise can address gaps: finance, logistics and distribution, mobility, and sustainable agriculture.

In finance, the fund will channel capital into fintech, mobile payments, microcredit, and SME-focused accounting and payment services. In logistics, it will target e-commerce platforms, last-mile delivery, and supply chain technologies that can also serve as distribution channels for Japanese goods.

Agriculture is a central focus, as Africa holds 60% of the world’s uncultivated arable land. The fund will prioritize AgriTech, smart irrigation, crop optimization, and sustainability-focused projects. In mobility, the partnership will explore opportunities in used vehicles and electric vehicle development, a fast-growing sector fueled by Africa’s expanding middle classes.

Startup Financing Shifts on the Continent

The fund’s launch comes as Africa’s startup ecosystem experiences major shifts in financing. Until 2022, most capital flowed through equity-based venture investments. But since 2023, equity fundraising slowed while debt and alternative financing expanded.

According to Partech Africa’s 2024 report, debt represented 31% of the $3.2 billion raised by African startups in 2023. Analysts see this as a sign of growing investor appetite for debt instruments. The new Uncovered Monex Africa fund therefore aligns with the continent’s evolving financing landscape.

This article was initially published in French by Chamberline Moko

Edited in English by Ange Jason Quenum