African venture capital firm LoftyInc Capital (LoftyInc) announced the first close of $43m for its new fund. The fund is called the Alpha Fund.
In a statement, the VC firm says the fund will be aimed at tech startups in the late-seed funding stage and will focus on various African countries including Nigeria, Egypt, Kenya, and Francophone Africa.
Also, the fund which is part of LoftyInc’s Startup Catalyst and ScaleX programmes, will prioritise startups in sectors such as financial services, retail enablement, logistics, healthcare, climate tech and artificial intelligence (AI).
Managing Partner at LoftyInc Idris Bello says, “In a challenging fundraising climate, we are thrilled to have surpassed our first-close target, attracting new institutional investors while reaffirming the commitment of our existing backers.”
The first close of the Alpha Fund attracted various investors, including Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA), Tunisia’s Anava Fund of Funds, and others.
Additionally, the development financial institutions of the fund are FMO (the Dutch Entrepreneurial Development Bank), the Dutch Good Growth Fund (DGGF), Proparco with FISEA, and AfricaGrow, a Fund of Funds managed by Allianz Global Investors and advised by DEG Impact GmbH, as well as the International Finance Corporation (IFC).
“This investment will provide seed-stage equity financing to tech startups across Africa, including nascent markets such as Francophone Africa,” said Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC.
With the establishment of the Alpha Fund, LoftyInc says it looks to empower and invest in startups across the African continent.
General Partner Mariam Kamel concluded by saying “This fund is a testament to our dedication to backing startups across the continent. Backed by investors who have confidence in our mission and ability to identify category leaders that will drive innovation and impact while delivering strong returns.”
Editor of Tech Africa. With a degree in Media Studies and Communication from the University of the Free State, I bring a wealth of experience in journalism and copywriting.
