In the latest episode of our Labari Media podcast, we spoke with Damilola Teidi, Head of Platform and Network at Ventures Platform, about the firm’s mission, their investment approach, and the current landscape for venture capital in Africa.
Ventures Platform Fund, known for its commitment to fostering technology-driven innovations across Africa, is navigating unique challenges and opportunities on the continent. Here’s a summary of the conversation.
Mission and Investment Strategy
Ventures Platform is dedicated to supporting what it calls “market-creating innovations”—innovations that either expand existing markets or establish new ones, often by making solutions more affordable or accessible. This approach enables the fund to reach underserved populations, whether by reducing costs or introducing essential products and services.
The fund invests across multiple stages, from pre-seed to Series A, with a portfolio of over 90 companies in seven countries. Sectors of particular interest include infrastructure, logistics, and areas that bridge critical access gaps, such as healthcare, finance, and climate tech.
As Dami emphasized, Ventures Platform is keen on innovations that address infrastructural challenges and catalyze growth in markets often overlooked by traditional investors.
Scouting and Due Diligence
Ventures Platform employs both inbound and outbound approaches in scouting promising startups. Entrepreneurs frequently pitch their ideas directly, while the fund also proactively seeks companies that align with its investment thesis.
The due diligence process at Ventures Platform is comprehensive, covering legal, financial, and team evaluations. Dami highlighted the importance of Environmental, Social, and Governance (ESG) criteria in assessing potential investments, especially given the fund’s mission to democratize prosperity across Africa.
Challenges and Trends in the African VC Landscape
The conversation also touched on current trends in African venture capital, including the global funding slowdown, known as the “funding winter.” Despite this, African startups have demonstrated resilience, with notable interest from European, U.S., Asian, and Middle Eastern investors.
Specific areas like climate tech, creative industries, and artificial intelligence (AI) are gaining traction, given their potential impact on both the economy and the environment.
Dami noted that while Africa may not contribute significantly to global carbon emissions, it stands to be disproportionately affected by climate change. Consequently, Ventures Platform is increasingly interested in climate-focused startups, especially those targeting sustainable agriculture and electric mobility.
Building Local Ecosystems through Partnerships
Ventures Platform actively collaborates with various stakeholders to strengthen local ecosystems. Relationships with government bodies, universities, and industry experts play a pivotal role.
Dami emphasized that no ecosystem can thrive in isolation and highlighted Ventures Platform’s contribution to the Nigerian Startup Act as an example of effective collaboration with policymakers.
Supporting Underrepresented Groups
Gender diversity and inclusivity are priorities at Ventures Platform, particularly regarding female-founded startups. Recognizing that women face unique barriers in the tech industry, Ventures Platform has committed to investing in female entrepreneurs.
Dami pointed out the importance of intentionality, such as ensuring that promotional materials are inclusive and making outreach efforts that directly target underrepresented groups.
Advice for Aspiring Entrepreneurs and Investors
Dami encouraged both entrepreneurs and investors to adopt a long-term perspective when investing in Africa. While economic challenges like currency devaluation and inflation present obstacles, Ventures Platform believes in the continent’s potential.
