Startups receive angel investment at an early stage in exchange for equity or any other convertible debt. Either an individual or an organization may make this investment.
Many people in Africa have business starting ideas, but a lack of funding prevents them from launching their enterprise that will address societal issues.
When investing in companies that are new to the market and have not yet established themselves, angel investors take measured risks. Although it usually works out well, there have been some documented failures and losses.
If you have a challenge starting a company because of funds, you may reach out to any of these ventures to help you. However, you should understand that you must have a solid business setup to receive funding. We recommend that you present a good financial statement and a great business that can solve problems in the continent.
We must let you know that not every business would get a chunk of the money that these ventures offer. This does not mean that you should not take a leap in fighting for this type of support.
Below is a list of some of the best Angel Investors in Africa in no particular order:
- eVentures Africa Fund(eVA Fund)
With the goal of investing in businesses and disseminating knowledge that would improve company survival, this fund was established in 2010.
The eVA fund focuses its investments in small and medium-sized businesses in Africa that are involved in the internet and industries associated to it.
They offer all-around assistance, access to tested ideas and networks, information, and resources.
Before applications for investment are considered by the eVentures Africa Fund, certain requirements must be met, including that the company is in sub-Saharan Africa, operates on the internet or a field related to it, have a successful business model, and have funding requirements between $100,000 and $1,000,000.
2. TBL Mirror Fund
This fund serves as a private equity fund for SMEs in Nigeria and all of Eastern Africa. The TBL Mirror Fund’s investors are knowledgeable and experienced individuals who come from many different walks of life.
The TBL Mirror Fund invests in industries that have an impressive pace of growth, and when combined with the knowledge and network, scalability for startups is guaranteed.
3. East Africa Capital Fund
The East Africa Capital Fund is an angel investment firm with a background in investment advisory and business facilitation.
When making investments, the East Africa Capital Fund concentrates on the media, telecommunications, and technology sectors. However, they also fund any creative start-up in any other industry.
4. Adlevo Capital
Adlevo Capital is a private equity fund with a Mauritius base and an investor network. Investments by Adlevo Capital are spread across several African nations.
Adlevo Capital is primarily concerned with promoting development in sub-Saharan African regions, and they hold the view that technology applications across all industries will successfully bring about the needed progress.
Adlevo Capital invests in companies and initiatives like clean technology startups, computer software, and hardware ventures, and essentially any firm that is supported by technology.
5. Angel Investment Network
One of the largest investment firms in Africa is the Angel Investment Network. However, this firm invests mostly in South Africa.
This firm focuses on helping entrepreneurs obtain both local and foreign investors for their businesses while still assisting them to remain in the market.
Additionally, they serve as platforms for those looking to invest and effectively channel these funds to entrepreneurs in need.
6. Africa Media Ventures Fund
As its name implies, Africa Media Ventures Fund is an investment firm that is aimed at growing the African media by investing in skilled media entrepreneurs who are seeking to grow and expand their abilities and art.
In addition to using their broad network and knowledge, Africa Media Venture Funds provides up to $200,000 in funding to support media entrepreneurs in Africa.
As it helps both the receiver and the investors, investment as a business model is growing in strength in Africa. Consequently, there are a lot more networks and organizations that make angel investments.
While these venture funds can transform your business, you should understand that when you receive them, you are losing some controlling power to your financial supporters. Finally, ensure that you know what you are getting into when you read the agreement.