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African VC LoftyInc Capital launches third fund for seed and Series A, reaches$43M first close
LoftyInc Capital has announced the first close of its third fund, LoftyInc Alpha, reaching $43 million. Aiming to support late-seed and Series A startups in Africa, it targets key markets such as Nigeria, Egypt, Kenya, and Francophone Africa. This strategic shift addresses the funding gap in Africa’s tech ecosystem, building on their successful previous funds and partnerships with major investors.
Key points
- LoftyInc Capital launched its third fund at $43 million for seed and Series A investments.
- The fund targets late-seed and Series A startups, unlike previous pre-seed focus.
- This move addresses the low graduation rates from pre-seed to Series A in Africa’s startup ecosystem.
- Diverse investors include sovereign wealth funds, development finance institutions, and high-net-worth individuals.
- LoftyInc aims to provide operational support alongside capital to strengthen startups' growth.
Why it matters
- In 2021, the African tech landscape experienced a unicorn boom, with significant venture capital influx.
- 2022 saw declines in average ticket sizes for Series A and B funding, as reported by Partech.
- LoftyInc’s earlier funds demonstrated successful returns, indicating a potential for revitalizing investment interest.
LoftyInc Capital's new fund represents a strategic shift to fill critical funding gaps in Africa's startup ecosystem, seeking to foster growth and innovation in key sectors while leveraging investor networks for enhanced support.