A London-based venture capital firm focused mainly on Africa, Mustard, has launched a £4 million investment model to help establish African firms with a potential worldwide reach with hopes of generating substantial returns in five years.
The idea-stage investing approach will allow the capital firm to act as both an investor and a builder from the start.
For a clearer understanding of how the process works, the venture capital firm will seek out innovative, experienced, and individuals with significant startup ideas that have a great global audience potential. After that, these proposing startups in sectors like engineering, design and storytelling are being explored and provided with capital funds.
If Mustard believes the company proposal and founders are more practicable, it will invest more funds and expertise to see the venture through the launching and early client traction stage, before seeking an exit in a Series A or B investment.
For African Venture Capitalists, the Mustard investment model appears to be a very realistic concept. Most African venture capital firms employ a 10-year returns method, which is the traditional standard model. These African venture capitalists also invest in early-stage startups with a large number of advisers.
Mustard’s investment model is unique in that it partners with a smaller number of companies (3-4 per year) and aims to attain VC returns in 5 years. It also does require advisors but only like-minded individuals because they will be totally invested in the first stages of the startup.
Africa has the culture, vibrancy and talent needed to make world-class brands, but over the years rhetoric and desire has not been matched by output. Mustard’s narrative-first philosophy, hands-on building and investing approach, and focus on influential founders, might be the change we need to shift the status quo.Thebe Ikalafeng, Founder of Brand Africa and former CMO of Nike Africa
Mustard believes that the African brands can be able to develop, as well as attract and impact global audiences, which will have a significant impact on Africa’s future image. The launch of the £4 million investment vehicle is to build narrative-led technology enterprises from the ground up, with like-minded founders and investors.
Some of these advisors have commended Mustard. They have also expressed their support for the fulfilment of the company’s mission goal.
Mustard’s expertise in venture building at the earliest possible stage coupled with a strong philosophy on brands has resonated with us for quite a while. African startups and their brands need to go out to the world for many reasons, among which include access to broader consumer markets. Mustard’s idea-stage investment approach is uniquely different, and highlights why a mixture of approaches is what a growing startup ecosystem needsEghosa Omoigui, General Partner of EchoVC Partners
In a press release statement, Ndubuisi Kejeh, Mustard’s founder enlisted prominent advisors who have been very generous in the fields of venture capital, growth, brand narratives and talent management.
These include former CEO of the Tony Elumelu Foundation, Parminder Vir OBE, an award-winning film and TV producer, Eunice Chou, of Africa VC firm EchoVC partners, Chris Williamson, MD of Mpesa at Vodacom and Dudu Sarr, long-time friend and manager of Grammy-award winner Youssou N’dour.
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