The Future Africa fund, launched earlier this year by Iyinoluwa Aboyeji, is now open to co-investors as it bids to back solutions tackling issues associated with the COVID-19 crisis and beyond.
As reported in January Aboyeji, who in the form of Andela and Flutterwave helped to launch two of Africa’s best known and best funded startups, had launched Future Africa alongside Olabinjo Adeniran and Adenike Sheriff.
A key part of the initiative is an early-stage investment fund that aimed to back up to 20 founders with up to US$50,000 of capital each year. Yet with the COVID-19 outbreak and the associated global crisis, Future Africa has adjusted its plans somewhat and is seeking co-investors.
“Before the crisis hit we thought about playing the traditional venture capital game. Hire our own grey-haired investment banker who knows the limited partners. Raise a big fund and sit easy on a pile of fees as we hand over our hard-won judgement and experience to bureaucracy and investment committees far from the madness we are innovating in. We too wanted to settle,” Future Africa said in a post.
“But when the crisis hit, we naturally dove into action supporting our portfolio companies to respond appropriately. As we watched the traditional venture capitalists entrusted with the responsibility of funding the innovators that will get us through this crisis drop the ball on one innovator after another on account of scared Limited Partners and restrictive investment committees, we knew that couldn’t be us. So we decided to focus our energy on innovating a new way to fund innovators through this pivotal moment of crisis and opportunity.”
The organisation has launched the Future Africa Collective, which it says is a “people-powered innovation fund” that allows qualified investors to co-invest with Future Africa on a deal-by-deal basis through investment syndicates.
“While we source and run diligence on innovators, the entire process for each deal is managed on your behalf by a globally renowned and trusted institutional fund partner based in the US.
In exchange for your capital, an annual subscription fee and a reasonable carry for the Future Africa team, you receive an opportunity to invest in groundbreaking innovators building the future today,” Future Africa said.
“We need you, our community, to partner with us as we fund the next Andelas and Flutterwaves through this health and economic crisis. Like you, we believe that especially as far as Africa is concerned, capital is not just a tool for creating and preserving wealth, it is also a weapon of innovation and revolution.”
Applications are open here.