Oui Capital, an early-stage venture capital firm with operations in Lagos and Massachusetts, has achieved the first close of its $30 million second fund. The firm, which launched in 2019, aims to expand its reach in Africa and strengthen its support for startups across the continent.
Having started with a $5 million debut fund, Oui Capital has since invested in 18 startups spanning fintech, logistics, healthcare, e-commerce, and enterprise software. Notable investments include TeamApt, MVX, Akiba Digital, Duplo, and Pharmacy Marts. The new fund reflects the firm’s ambition to maintain its pace of investment, particularly in pre-seed and seed-stage startups across sub-Saharan Africa.With the first close of the fund surpassing $11 million, Oui Capital anticipates completing the final round by the end of 2022. According to Managing Partner Olu Oyinsan, the first fund achieved a strong multiple on invested capital (MOIC) exceeding 7x. This success stems from the firm’s disciplined approach to identifying startups, focusing on teams, markets, and technology with strong customer engagement.
Tailored Support for Startups
Oui Capital goes beyond financial investments by actively supporting startups through partnerships, recruitment, and additional funding when needed. The firm maintains a relatively small portfolio, allowing it to dedicate substantial resources to each company. Oyinsan emphasized the importance of balancing optimism with responsibility, ensuring resources are strategically allocated to maximize returns for investors.
With the venture capital landscape facing global challenges, Oui Capital is adapting by focusing on companies with solid fundamentals, robust unit economics, and disciplined valuations. The firm plans to use its new fund to increase its role in bridge rounds, addressing funding gaps for startups in the pre-Series A stage.
Expanding Investments and Geographic Reach
Oui Capital’s second fund aims to provide initial investments of up to $750,000, a significant increase from the first fund’s ticket size. The fund also reserves capital for follow-on investments. With a strong network of individual and institutional investors supporting the fund, Oui Capital is poised to amplify its impact across Africa.
The firm’s strategy involves identifying and supporting startups in emerging sectors and regions, with investments already made in countries like Nigeria, Kenya, Senegal, Egypt, and South Africa. Oui Capital plans to expand further into North and Francophone Africa, regions that have seen significant growth in tech investments.
Success Stories Driving Pan-African Strategy
TeamApt, one of Africa’s largest fintech companies by revenue, has been a standout success from Oui Capital’s portfolio. The firm invested in TeamApt early, well before it gained widespread attention, and the company is now valued as one of the continent’s leading fintech innovators.
The success of TeamApt has inspired Oui Capital’s commitment to a pan-African investment approach. By focusing on startups with the potential to lead in their respective markets, the firm continues to position itself as a key player in Africa’s tech ecosystem.As the fund expands its investments across the continent, Oui Capital remains focused on providing critical support to startups, driving innovation, and contributing to the growth of Africa’s tech industry.
