Uncap, a leading venture capital firm with a strong presence in Africa, has launched a groundbreaking $33 million fund to support the growth of early-stage small and medium-sized enterprises (SMEs) across the continent. This new fund, named Unconventional Capital, introduces a revolutionary non-dilutive financing model that provides crucial support to businesses without requiring them to relinquish equity.
Recognizing the unique challenges faced by African SMEs in accessing capital, Uncap has designed this fund to offer a more flexible and equitable financing solution. Unlike traditional venture capital models, which often require founders to give up significant ownership stakes, Unconventional Capital provides funding in exchange for a share of the company’s future revenue. This innovative approach empowers entrepreneurs to maintain control over their businesses while accessing the capital they need to thrive.
Led by Esther Ndeti and Franziska Reh, Uncap’s seasoned investment professionals, the fund will collaborate with key partners, including O-Farms and SAIS, to unlock new growth opportunities for African SMEs, particularly in high-impact sectors such as agriculture and technology. Furthermore, the fund has garnered support from prominent global institutions, including the Bill & Melinda Gates Foundation and the Bayer Foundation, underscoring its significance and potential impact.
Uncap has a proven track record of supporting African businesses, having invested in 87 companies across seven countries in sub-Saharan Africa. With this new fund, Uncap aims to further strengthen its commitment to empowering African SMEs and fostering sustainable economic growth across the continent.
