By Jonathan Ntege Lubwama
- Africa-focused VC firm, Enza Capital, closed two funds worth $58M to back early stage startups
- In the first half of 2023 Africa’s venture capital ecosystem saw a staggering $1.4B decrease in funding
Enza Capital, a venture capital firm with a keen focus on nurturing African startups, has successfully closed two funds, amassing a total of $58 million. The successful fundraising by Enza Capital is particularly significant in light of the recent downturn in Africa’s venture capital market. The first half of 2023 saw a staggering $1.4 billion decrease in funding, a development that has sent shockwaves through the continent’s startup ecosystem.
Why This Matters: The firm, which began its venture capital journey in 2019, launched an early-stage fund with the primary objective of identifying, supporting, and fostering startups with the potential to revolutionize their respective sectors. Enza Capital’s investment portfolio is diverse, spanning fintech, logistics, health, human capital, and climate tech. Notable investments include Guidewheel, a Kenyan climate tech startup, Shara, a Kenyan fintech company, and co-led Series A investments in Ivorian fintech, Djamo, and Kenyan insur-tech Turaco.
This is a much needed bright spot in Africa’s hard hit venture capital ecosystem. Between January and June of this year, only 263 venture capital deals were executed, collectively accounting for $2.1 billion. This represents a 40% decline in deal volume and total funding compared to the previous year’s figures, which amounted to $3.5 billion during the same period. Concerns have been raised about the future of entrepreneurship and innovation in the region, making Enza Capital’s successful fundraising a beacon of hope in an otherwise challenging landscape.
What’s Next: Enza Capital’s successful fundraising could potentially signal a turning point. The firm’s ability to raise significant funds amidst economic uncertainties and market fluctuations demonstrates resilience and adaptability. It also underscores the continued interest and faith in African startups, despite the broader funding challenges.
Moving forward, Enza Capital’s success could inspire other venture capital firms to explore innovative fundraising strategies and continue supporting African startups. It also serves as a testament to the potential of African startups, reinforcing the notion that with the right support and investment, they can thrive even in the face of adversity.
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