TLcom Capital, an Africa-focused venture capital firm, has announced the first close of its second fund, securing $70 million of its $150 million target. The fund aims to support early- and late-stage startups across the continent, building on the firm’s successful track record with companies like Andela and Twiga.T
he new fund is set to surpass the firm’s inaugural TIDE Africa Fund, which closed in 2020 at $71 million. According to managing partner Maurizio Caio, the second fund is expected to close later this year, marking a significant milestone for the firm, which operates across Lagos, Nairobi, and London.
Scaling Investments in Africa
TLcom plans to invest in 20 early-stage startups, with ticket sizes ranging from $500,000 to $15 million. The firm also intends to allocate capital for follow-on investments in its existing portfolio, ensuring long-term support for its startups. Notably, TLcom has expanded its geographical focus to include Egypt while maintaining a strong presence in East and West Africa.
Since 2017, TLcom has invested in 11 African startups, including Ajua, Ilara Health, Kobo360, Okra, Pula, Terragon Group, and uLesson. The firm’s ability to back high-growth companies from seed to Series B stages has positioned it as a critical player in Africa’s venture ecosystem.
Addressing Growing Demand for Venture Capital
Africa’s venture capital market has experienced significant growth, with startups raising over $4 billion in 2021. This influx of capital has intensified competition among investors, with local and international players vying for promising opportunities. TLcom, however, remains committed to its strategy of supporting startups in traditional sectors like fintech, agriculture, healthcare, education, and e-commerce while exploring emerging fields such as web3, crypto, and decentralized finance (DeFi).
Driving Impact and Growth
TLcom’s portfolio companies have collectively tripled their revenues since receiving investments, with follow-on funding from global investors like SoftBank and Index Ventures. These companies have also seen an average 5x increase in valuation, demonstrating the firm’s ability to identify and nurture high-potential startups.
Encouraging African Entrepreneurs to Dream Big
Reflecting on the evolving venture landscape, Caio emphasized the importance of scale for African entrepreneurs. “We are still in the early stages of African VC. Entrepreneurs should focus on the magnitude of their opportunity and not hesitate to seek the necessary capital to build transformative companies,” he said.
With this new fund, TLcom Capital is poised to deepen its impact on Africa’s startup ecosystem, empowering entrepreneurs to create solutions that drive growth and innovation across the continent.
