5 Ways To Investors Willing To Invest In Africa Persuasively

There are many good reasons to invest in Africa investors should be aware that the region will test their patience. The African markets are unstable, and time horizons don't always work. Even sophisticated businesses may need to revise their business plans, like Nestle did in 21 African countries last year. Many countries also have deficits. It will require the courage and determination of investors to fill in these gaps and bring more prosperity to Africans.

TLcom Capital's $71 million TIDE Africa Fund

The latest venture by TLcom Capital was closed at $71 million. The predecessor fund closed in January last year. Five million dollars were donated by Sango Capital, Bio, CDC Group and TLcom. The first fund invested in tech companies in Kenya and Nigeria. TIDE Africa II will focus on fintech companies in East Africa. The investment firm has offices in Kenya and Nigeria. TLcom's portfolio includes Twiga Foods, Andela, uLesson, and Kobo360. The investment company makes between $500,000 and $10 million for each of the companies.

TLcom, a Nairobi-based VC company is home to more than $200 million under management. The firm's Managing Partner, Omobola Johnson, has helped establish more than dozen tech-related companies across the continent, including Twiga Foods and a trucking logistics company. Omobola Johnson (a former minister of technology and communication in Nigeria) is part of the team of the investment firm.

TIDE Africa is an equity investment fund which invests in growth stage tech companies in SSA. It will invest between $500,000 and $10 million in early-stage companies, with a focus on Series A and II rounds. Although the fund will focus on Anglophone Africa, it plans to invest in Eastern and Southern African countries, too. TIDE, for instance, has invested in five high-growth digital companies in Kenya.

Omidyar Network's $71 million TEEP Fund

The Omidyar Network, a US-based investment firm that invests in philanthropy, has set out to invest $100-$200 millions in India over five years. The fund was started by eBay co-founder Pierre Omidyar and has invested $113 million in 35 Indian companies since 2010. The firm invests in the Indian consumer internet, entrepreneurship and financial inclusion. It also invests in property rights, government transparency and transparency in government as well as companies that have a social impact.

The Omidyar Network's TEEP Fund makes investments that are designed to increase access to government information. It is a way to identify non-profits using technology in creating public information portals and tools to citizens. The network believes that having open access to government information improves the public's understanding of government processes, which results in a more active society that holds government officials accountable. Imaginable Futures will invest the funds into nonprofit and investors looking for entrepreneurs for-profit organisations that focus on education and health.

Raise

If you're planning to raise money for your African business, you must look for a business with an African-centric focus. TLcom Capital, a fund manager located in London is one of these companies. Angel investors have been drawn to its African investments, and the team has also raised funds in Nigeria and Kenya. TLcom recently announced the launch of a new $71 million fund that intends to invest in 12 startups before they reach revenue.

The capital market is becoming aware of the potential appeal of Africa venture capital. Private investors are becoming increasingly aware of the potential for growth in Africa and aren't limited by institutional investors. This means that raising funds is much less difficult than in the past. Raise allows businesses to close deals in half the time, and is free from the restrictions of institutions. There isn't a single way to raise money for African investors.

The first step is to comprehend the mindset of investors regarding African investments. While many investors are drawn to YC hype, it's vital to consider the bigger picture of this Silicon Valley giant and the Agenda 2063 of the African Union. In the end, African startups are looking for the YC signal before approaching US investors. A Tunisian venture capitalist Kyane Kassiri recently spoke out about the importance of the YC sign when raising funds for African investors.

GetEquity

GetEquity, an investment platform based in Nigeria, was founded in July 2021. It aims to bring about democratization of the funding of startups in Africa. It aims to make funding African startups accessible how to get funding for a business; https://www.5mfunding.com/, all through the provision of capital raising tools and world-class capital for all startups. The platform has already helped startups raise more than $150,000 from a wide range of investors. In addition, it also offers a secondary market for investors to buy other investors' tokens.

Unlike equity crowdfunding, investing in early-stage companies is a very exclusive business that is usually only available to the top individual capital institutions and angel investors as well as syndicates. It is not usually available to family members or friends. However, How To Get Funding For A Business new companies are making an effort to change this privilege by opening up access to startup capital in Africa. The platform is available on iOS and Android devices and is free to use.

With the launch of its wallet that is based on blockchain technology, GetEquity is making startup investing in Africa possible for everyday investors. With the help of crypto-based funds, investors can invest in African startups starting at just $10. Although it's a small amount, it's still significant money compared to traditional equity financing. After the recent withdrawal from Paystack by Spark Capital GetEquity has become an ideal platform for African investors looking to invest in Africa.

Bamboo

Bamboo's first challenge is convincing young Africans to invest on the platform. In the past, investors in Africa were restricted to a few options including foreign direct investment (FDI), crowdfunding, and traditional finance companies. A mere third of the African population has invested on any platform. The company has announced that it is expanding into other countries in Africa, with plans to launch in Ghana in April 2021. As of this writing more than 50,000 Ghanaians have signed up for the waitlist.

Africans do not have many options for saving money. The currency is losing value against the dollar due inflation of more than 16%. It is beneficial to invest in dollars to hedge against the effects of inflation and a declining currency. Bamboo has experienced rapid growth over the last two years, is a platform that allows Africans to invest in U.S. stock options. Bamboo will begin operations in Ghana in April 2021. It has already surpassed 50k users waiting to access.

Investors can fund their wallets as early at $20 after they have been registered. Funding can be made through credit cards, bank transfers, and credit cards. They can then trade stocks and ETFs and receive market updates. Bamboo's platform is bank-level secured which means that anyone in Africa can use it if they have a valid Nigerian Bank Verification number. Bamboo's services can also be used by professional investment advisers.

Chaka

There are a number of reasons why Nigeria is a hotbed for legitimate business and investment. The Nigerian film and entertainment industry is among the biggest in Africa. The country's growing fintech ecosystem has led to an increase in startup formations and VC activity. One of the most prominent backers of Chaka, Iyinoluwa Aboyeji, said to TechCrunch that the country's modern trends will eventually open doors to a whole new set of investors. In addition to Aboyeji's investment, Chaka has also secured seed-funds from the Microtraction fund which is headed by Y Combinator CEO Michael Seibel.

Beijing has been more interested in African investments due to the weakening relationship between the US and China. The trade war, along with the rising anti-China sentiment has made it more attractive for investors to consider investing outside of the US to invest in African companies. The African continent has large, emerging economies but most markets are too small to support venture-sized businesses. The owners of businesses in Africa should be prepared to adopt an expansion mindset and lock in a cohesive expansion narrative.

The Nigerian Stock Exchange is overseen by the Central Securities Clearing System, which makes it a secure and secure location to invest in African stocks. Chaka is free to join and has an 0.5 percent commission for each trade. Withdrawals of cash available can take up 12 hours. The withdrawal of shares that have been sold, on the other hand can take up to three days. Both cases are handled locally.

Rise

Africa is seeing positive news due to the increasing number of investors willing to invest. The country's economy is stable and its governance is sound, which draws foreign investors. This growth has increased the standard of living in Africa. Africa is still a risky investment spot. Investors should exercise caution and do their research. There are numerous opportunities to invest in Africa. However the continent needs to make improvements to draw foreign capital. African governments must collaborate to create a more hospitable environment for business and improve the business climate in the coming years.

The United States is increasingly willing to aid African economies through foreign direct investment. U.S. governments assisted Senegal in advancing a major healthcare financing facility. The U.S. government also supported the development of new technologies in Africa and helped pharmacies in Nigeria and Kenya provide high-quality medication. This investment could create jobs and create long-term partnerships between the U.S.A and Africa.

While there are numerous opportunities available in the African stock market, it is vital to understand the market and do due diligence to ensure you don't lose money. If you are a small investor it is a good idea to invest in an exchange-traded fund (ETFs) which track an array of Sub-Saharan African businesses. American depositary receipts (ADRs) that are issued by the United America, allow you to trade African stocks on the U.S. stock exchange.