TLcom Capital Raises $154 Million for Seed and Series A Startups in Africa

TLcom Africa, an African-focused Venture Capital, has raised $154 million to support and invest in African Startups. The company recently concluded its fundraising for its second fund, Tide Africa Fund II. The fundraising event positioned TLcom as Africa’s largest investor across seed and Series A.

The Tide Africa Fund II was previously targeted at $150 million but it attracted more notable participants such as the European Investment Bank (EIB) and Visa Foundation. Additionally, Bertelsmann, and AfricaGrow, a joint venture between Allianz and DEG Impact, were involved.

TLcom Capital Aims To Expand Further With The Fund II

The Fund II may offer some ease to African technology and startup firms after VC inflows plummeted last year. According to a recent report by the London-based African Private Capital Association, they fell 31% in 2023 to $4.5 billion from a year earlier.

The report attributed the decrease to economic headwinds, including inefficient currencies and high inflation, which prompted foreign investors to pull back from African economies.

Ambroise Fayolle, Vice-president at the EIB, said in the statement, “Across Africa, access to capital remains limited, especially early-stage startups. Africa’s startup ecosystem has the potential to drive inclusive economic growth and foster positive social change, which the EIB is happy to support.”

TLcom Capital To Venture Into North African Countries

TLcom will use Fund II to expand into Egypt and other African countries with relevant early start-ups. The company has been investing in the Sub-Saharan Africa region. This proposed expansion will highlight the firm’s dedication and reliability in the cultivation of early African start-ups. Two investments have already been made from this Fund II into South African fintech, littlefish, and Egyptian logistics startup, ILLA.

Maurizio Caio, Founder and Managing Partner, said in a statement, “We are maintaining the same investment strategy for TIDE Africa Fund II as we had for our first fund. Fund I made over 80% of its investments at seed or Series A. Finally, with this final close, we’re thrilled that TLcom is in an even stronger position to continue to partner with Africa’s most talented entrepreneurs from early in their company-building journeys.”

TLcom Africa Invests In Female Focused Startups

Additionally, TLcom is investing in female-focused startups, one of which is FirstCheck. The firm invested $2 million in the startup in 2022 to boost its efficiency. The act encouraged Eloho Omame, co-founder of FirstCheck alongside PiggyVest co-founder, Odunayo Eweniyi, to join TLcom as a Partner.

TLcom hopes to do more to increase the number of female founders in its portfolio.

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