German venture capitalist (VC) firm, GreenTec Capital Partners is expanding its presence on the African continent. The Frankfurt-based VC firm recently announced it is opening a new Africa base of operations in Nigeria. According to the company, the new base signals its second step of African expansion strategy.
— Pauline Koelbl (@PaulineKoelbl) September 8, 2018
GreenTec Capital is one of the venture firms recently ‘invading’ Africa and bolstering the African startup space. Its first ever Africa investment dates back to November 2017, when it backed Uganda’s health startup, Wazi Vision’s $800,000 funding round. The venture firm also has investments in two other African startups, Bismart Insurance and Parcel-It. It also recently closed a deal with Namibian startup PEBL.
GreenTec Capital’s expansion into Nigeria does not come as a shocker though. The firm shared earlier this month that it plans to make more investments in Africa by opening several new local offices. The company believes local presence enhances GreenTec’s market access and its ability to spot new potentials. The Nigerian office adds to its other African offices in South Africa and Ethiopia.
Earlier this month, GreenTec Capital Partners Thomas Festerling attended SUSCO Budapest 2018 to participate as a panelist on the “Barriers and Solutions: Looking for a way out? Or a way of living?” panel. Read more on our site: https://t.co/UG8pnSl3mA pic.twitter.com/msiIEiBQy5
— GreenTec Capital (@GreenTecCapital) October 19, 2018
And of course, GreenTec Capital is somewhat on a clock. The VC firm has an agenda to support over 50 African startups by 2023. It has already amassed a portfolio of 12 companies so far which is impressive because it still has four more years to achieve its target.
Africa-based Venture Capitalist Firms are on the Rise
Interestingly, GreenTec is not the only VC firm making a move into Africa. Alta Global, an American based firm has announced the appointment of Victor Asemota as the head of its new Africa division. While the information is still fresh, it appears the new division may operate from Accra, Ghana.
Asemota, a reputable Nigerian tech entrepreneur, has been at the forefront of African tech innovations for over a decade. He is the founder of the SwiftaCorp, a global tech company with operations in Nigeria and Ghana. He is also an important advisor to different African tech hubs as well as tech companies.
— ARED GROUP (@AREDRwanda) September 4, 2018
His appointment to Alta Global not only affirms the company’s plans for Africa but also signifies high trust in African managers to oversee VC funding. This trend is what TechCrunch’s Jake Bright admits is on the rise.
According to data pulled from Crunchbase, there are 51 venture firms operating in Africa with seven or more startups in their respective portfolios. 22 of these firms are actually based in Africa and managed by Africans. This represents a notable improvement for Africa.
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