Verod-Kepple Africa Ventures (VKAV), a pan-African venture capital firm, has closed its first fund at $60 million. The fund aims to provide capital and support to growth-stage companies across the continent. VKAV recently received fresh backing from Nigeria’s SCM Capital and became the first non-Japanese investor. Other recent investors include Taiyo Holdings and C2C Global Education Japan. This capital injection comes as the African investment market faces a downturn, and will help provide much-needed capital to series A and B startups. Many local capital pools for growth-stage companies remain limited, so VKAV aims to fill this gap.
The founders of VKAV launched the firm in 2022 as a joint venture between Verod Capital, a private equity firm, and Kepple Africa, a Tokyo-based venture capital firm. The collaboration was formed to provide meaningful hands-on support to portfolio companies, including operational best practices, improved governance structures, and navigating Africa’s complex macroeconomic environment. VKAV noticed that as more startups transitioned from pre-seed and seed stages to series A and B, they required a more institutional approach to succeed in scaling.
VKAV focuses on investing in startups that are building infrastructure for the digital economy, solving inefficiencies encountered by businesses, and creating new markets for the emerging consumer population. The firm invests between $1 million and $3 million per company, with the ability to follow-on invest. So far, VKAV has deployed $17.5 million and invested an average of $1.5 million in 12 companies across Nigeria, Egypt, Kenya, Morocco, Ivory Coast, and South Africa. The investees span various sectors, including fintech, mobility, e-commerce, proptech, deeptech, insurtech, energy, and healthcare. Some notable companies in VKAV’s portfolio include Moove Africa, KOKO Networks, Shuttlers, Cloudline, Chari, and mTek-Services.
While VKAV is sector-agnostic, the firm pays attention to vertical ERP startups, those offering embedded financial services, and players in the future of work space. They are also exploring how the rise of artificial intelligence and Gen AI will impact the production and distribution of tech-enabled businesses. VKAV plans to continue expanding its reach to other ecosystems, such as Angola, Zambia, the Democratic Republic of the Congo, and Tunisia. The fund aims to identify new investment opportunities, particularly in underserved markets.
Ory Okolloh, a partner at VKAV with extensive experience in tech and investment, emphasized the importance of taking a pan-African and sector-agnostic approach. She believes that diversity in the portfolio, including gender representation and market sectors, is crucial for success. VKAV’s collaboration with Japanese institutional investors reflects a growing trend of Japanese investors looking to diversify their risks by investing in African VC funds. Okolloh expressed excitement about learning from and collaborating with investors and partners from different parts of the world, as well as backing exceptional founders in a meaningful way.
In conclusion, Verod-Kepple Africa Ventures (VKAV) has closed its first fund at $60 million. The pan-African venture capital firm aims to provide capital and support to growth-stage companies across the continent. VKAV’s collaboration with Japanese institutional investors reflects a growing trend of Japanese investors seeking investment opportunities in African VC funds. The fund plans to continue expanding its reach and exploring new investment opportunities, particularly in underserved markets. VKAV’s focus on diversity in its portfolio and its sector-agnostic approach will contribute to its success in supporting and scaling African startups.
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