Renew Capital, a venture capital firm with a background in private equity, has shifted focus from investing in export-focused businesses in Ethiopia to expanding its investments in West Africa. The firm plans to invest between $50,000 and $500,000 in asset-light and tech-enabled businesses, with a recent investment in a Ghanaian digital bank. Renew Capital operates two funds: a $6 million angel syndicate and a $15 million follow-on fund.
The firm is committed to supporting startups through accelerator programs and providing follow-on funding to those that meet specific metrics. Renew Capital also collaborates with foreign governments to promote investment in Africa, aiming to change the perception of Africa as a place of investment rather than just aid.
The firm’s CEO, Matt Davis, and managing partner, Laura Davis, work together to run the firm. Matt emphasizes the importance of continuous learning in the investment landscape and the significance of trust and integrity in founders when making investment decisions.
Renew Capital’s investment thesis revolves around finding exceptional founders and supporting tech-enabled companies that disrupt industries. The firm follows a structured investment process that includes evaluating founders, engaging with a global network of investors, and conducting due diligence.
When considering investments in Nigeria, Renew Capital acknowledges the country’s economic challenges but sees potential for growth and progress. The firm values transparency, scalability, and trustworthiness in founders, and red flags are raised if these criteria are not met.
Overall, Renew Capital’s approach to investing in African startups focuses on finding innovative founders, supporting scalable and disruptive business models, and maintaining a rigorous investment process to ensure long-term success.