by Capria Ventures, a prominent venture capital firm, actively seeks to invest in African Series A startups with funding ranging from $1 to $3 million. This move underscores Capria’s commitment to supporting early-growth startups in emerging markets, particularly in Africa. Capria VC, a worldwide venture firm with $207 million in assets under management, uses a novel approach to investing in emerging economies, backing companies and local fund managers. In addition to actively investing in only 41 startups, it has invested in 17 fund managers worldwide, providing indirect exposure to around 400 portfolio firms.
Capria focuses on African Series A startups to empower companies that have demonstrated product-market fit and are ready to scale.
Capria’s Investment Strategy
Capria’s investment strategy involves collaborating with local fund managers and mentoring startups. This approach allows them to tap into a broad network of market insights, benefiting both Capria and its portfolio companies. The firm has already invested in several African Series A startups, including Moniepoint and Seamless HR, showcasing its preference for sectors like fintech, agtech, and HRtech.
Related: Raenest Secures $11M Series A to Boost African Businesses
Responding to questions from TechCabal on how local partnerships operate, and how they can choose which ones to invest in, da Silva, the Africa partner at Capria, said that in the four areas where they invest, Capria has a network of fund managers. These are the funds that they invest with while supporting businesses; they are their primary investment partners. In addition, they have connections with other ecosystem investors that they trust and whose approaches coincide with their own. They periodically co-invest with them even though they haven’t directly invested in their funds.
They employ this co-investment strategy because local fund managers offer significant benefits. They are physically present in the marketplaces, have more profound knowledge of the ecosystem, and have robust networks. For these reasons, it makes sense to invest alongside them.
Related: ORA Technologies Secures $1.9M in Pre-Series A Funding
Focus on Key Sectors
Capria is particularly interested in African Series A startups operating in fintech, agtech, job tech, and B2B SaaS. These sectors are crucial for driving large-scale impact and innovation in emerging markets. Additionally, rather than focusing solely on AI-native companies, Capria looks for startups that effectively use AI to enhance their business models.
Series A funding is pivotal for startups looking to scale their operations. It typically involves more significant investments than seed funding, ranging from $5 to $20 million. For African Series A startups, securing this funding is crucial for expanding into new markets, building teams, and improving operational systems. Capria’s focus on this stage reflects its belief in the potential of these startups to achieve significant growth.
Related: South African Agri-Tech Startup Khula Secures $6.8M in Series A Funding
Capria’s Unique Support Model
Beyond financial investment, Capria offers a unique support structure. The firm has an in-house AI team available to its portfolio companies, assisting with AI implementation challenges. This resource is particularly valuable for African Series A startups looking to leverage AI for business transformation.
The African startup ecosystem has seen a surge in investments, crossing the $1 billion mark in 2024. This trend indicates growing investor confidence in Africa’s potential for innovation and growth. For African Series A startups, this environment presents opportunities for securing significant funding and scaling their operations.
Related: Oze Lands Funding from Visa and DEG
Conclusion
Capria Ventures’ plan to invest $1 to $3 million in more African Series A startups highlights its commitment to fostering growth in the continent’s tech ecosystem. Capria is well-positioned to empower the next generation of transformative startups in Africa by focusing on key sectors and providing comprehensive support.
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Related: Moniepoint secures a strategic investment from Visa.
