TLcom Capital raises $154M for second fund to support early-stage startups in Africa

TLcom Capital, a prominent African venture capital firm, has successfully closed its second fund, TIDE Africa Fund II, with a total of $154 million raised. This achievement solidifies TLcom Capital’s position as the largest investor in Africa focusing on seed and Series A startups.

The oversubscribed fund attracted over 20 limited partners, including notable investors such as the European Investment Bank, Visa Foundation, Bertelsmann, and AfricaGrow. This successful fundraising effort comes after two years of hard work, with TLcom Capital initially targeting $150 million for the fund.

Managing partner Maurizio Caio attributes the firm’s success to an improved understanding and acceptance of venture capital in Africa among limited partners. TLcom Capital’s consistent strategy of prioritizing early-stage opportunities, particularly at the seed and Series A stages, has also played a crucial role in garnering investor confidence and support.

The firm’s portfolio of companies exemplifying its investment strategy has been instrumental in attracting investors. TLcom Capital has already backed six companies from its new fund, with initial investments ranging from $1 million to $3 million. These investments include startups like SeamlessHR, FairMoney, Zone, and Vendease, as well as expanding its portfolio to include companies in Egypt and South Africa.

As TLcom Capital and other venture capital firms in Africa continue to raise significant funds to support startups across various stages of growth, the focus will now shift to exit opportunities and tangible returns for investors. Caio emphasizes the importance of generating returns in the African tech ecosystem to attract global capital and drive further growth and innovation in the region.