Launch Africa has been actively investing in African startups since 2020 and has successfully invested in numerous startups across various countries and sectors. The firm is now deploying its second fund, focusing on B2B and B2B2C early-stage startups with cheques ranging from $250,000 to $500,000. Launch Africa’s investment approach emphasizes sustainable growth and clear paths to profitability.
The firm is currently raising its third fund, which will follow a mezzanine structure, offering a hybrid of debt and equity financing. This approach aims to provide working capital for startups while maintaining meaningful ownership stakes and positioning for higher valuations.
Launch Africa’s investment strategy focuses on bridging the gap between seed-stage funding and Series A rounds in Africa’s startup ecosystem. The firm provides strategic and operational support to founders, leveraging its network to connect startups with corporate partners and later-stage investors.
The firm maintains a sector-agnostic approach but shows interest in sectors such as fintech, cleantech, agritech, and AI/big data. Their investment decision is based on team strength, market opportunity, traction, and alignment with investment criteria.
Launch Africa’s approach to cheque sizes has evolved over time, with a focus on achieving target ownership percentages for better returns. The firm also emphasizes portfolio construction in terms of stage, geography, and sector distribution to balance risk and opportunity.
Lessons learned from previous funds have influenced the structuring and positioning of the upcoming third fund, focusing on ownership percentages, sector focus, geographic distribution, and co-investor quality. The firm aims to deliver top-quartile returns to LPs while contributing to Africa’s wider socio-economic development.
Success for Launch Africa in ten years includes financial returns, ecosystem impact, and lasting institutional impact. The firm aims to build category-defining companies, transform industries, and develop African investment talent while contributing to Africa’s development.