TLcom Capital, a venture capital firm with a focus on Africa, has announced the completion of TIDE Africa Fund II, a $154 million fund established to support seed and Series A startups on the continent.
For its second fund, the company had originally aimed to raise $150 million, but it surpassed that amount.
It was announced two years ago that the TIDE Africa Fund II had closed for the first time, with the return of LPs IFC and CDC Group joining Nigerian investment bank FBNQuest. The European Investment Bank (EIB), AfricaGrow, Visa Foundation, and Bertelsmann also joined as LPs after the fund was closed.
TLcom has made investments in Sub-Saharan Africa in the past, but it is now shifting its attention to North Africa, starting with Egypt. This fund has already been used to invest in two startups: ILLA, an Egyptian logistics company, and Littlefish, a South African fintech.
“We are maintaining the same investment strategy for TIDE Africa Fund II as we had for our first fund, which made over 80% of its investments at seed or Series A. 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,” Maurizio Caio, Founder and Managing Partner, said in a statement.
Although it has been challenging for African businesses to raise money over the past two years, Caio emphasises that since TLcom raised its first investment, venture capital in Africa has advanced significantly.
With more than $300 million in funds under management, TLcom has backed 17 startups, including Andela, a unicorn. TLcom intends to expand the number of female founders in its portfolio as it has more capital to invest.
During its initial investment, Kobo360, Vendease, Twiga Foods, Terragon, Okra, and Ilara Health were among the startups that it supported. Additionally, it supported Grant Brooke, Etop Ikpe, and Sim Shagaya, the repeat creators.
Between $1 and $3 million will be the first investments made by TLcom, and the company will set aside funds for other investments.
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