Uncap, a venture capital firm with operations in Munich and Nairobi, has introduced a $33 million fund to support small and medium-sized enterprises (SMEs) across Africa. Officially launched on September 18, 2024, the fund, named Unconventional Capital, adopts a revenue-based financing model that provides early-stage businesses with funding without requiring equity dilution.The fund is co-led by Esther Ndeti, Uncap’s Investment Principal, and Franziska Reh, CEO of Uncap. It aims to provide African SMEs with growth capital while allowing founders to retain full control over their operations. Key collaborators include O-Farms, a circular agriculture initiative by Bopinc funded by the Ikea Foundation, and SAIS, an agritech program supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ. These partnerships will focus on unlocking growth opportunities in impactful sectors like agriculture and technology.
Support from Global Foundations
Major global institutions such as the Bill & Melinda Gates Foundation and the Bayer Foundation have extended their backing to the fund. This financial support aligns with the fund’s mission to create a more inclusive financing model for African businesses.
Transforming SME Financing
Traditional venture capital models often require founders to relinquish equity for funding, a challenge for many SMEs in Africa. Unconventional Capital’s revenue-based financing offers an alternative by allowing businesses to access between $22,000 and $112,000 in funding while retaining full ownership.Uncap has already invested in 87 companies across seven countries in sub-Saharan Africa, spanning eight sectors, including agriculture, education, food & beverages, and media & entertainment. This fund aims to provide further support to SMEs, particularly those in underserved regions.
Eligibility Criteria
The fund is open to SMEs that meet the following requirements:
Registered limited companies in Kenya, Rwanda, Uganda, or Nigeria.
A minimum of two years in operation.
Annual revenue of at least $89,000 in the past 12 months.
Operational Expansion
In addition to the fund launch, Uncap has separated its financial operations from Level, a standalone SaaS platform designed to simplify investment management for funders and accelerators in Africa.Uncap’s innovative financing approach and strategic partnerships position it as a key player in empowering African SMEs, which account for about 90% of businesses on the continent. With a focus on sustainable growth and operational control, the fund offers a transformative model for early-stage business support in Africa.
