Janngo Capital’s first close of €60m fund to support African women
Pan-African Venture Capital (VC) company, Janngo Capital Startup Fund (JCSF), second investment vehicle of the management company has announced the first close of its €60m ($63 million) capital commitments at €34m ($36 million). This was after VC Investor, Founder & Executive Chair of Janngo Capital, Fatoumata Ba announced in 2019 that the firm was raising a €60m ($63 million) fund.
Janngo Capital’s latest fund will invest 50% of its proceeds in companies founded, co-founded, or benefiting women. Backed by global financial institutions as well as leading private corporations, “the fund management company plans to invest in startups leveraging technology to leapfrog development and achieve SDGs in Africa.”
The fund is also set to provide up to EUR5 million seed and growth investments to early-stage tech and tech-enabled startups that enable Africans to improve their access to essential goods and services such as healthcare, education or financial services; enable African SMEs to improve their access to market & capital and, or; create sustainable jobs at scale, with a focus on women & youth.
Proparco, Burda Principal Investments, Muller Medien & asset management veterans joined anchor investors such as European Investment Bank (EIB), African Developmental Bank (AfDB) & Boost Africa.
The company received €15m from EIB, €10.5m from AfDB and €34m from Proparco, Burda Principal Investments, Muller Medien, among others.
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More women and an opportunity for francophone startups
“We are proud to lead Africa’s largest gender equal tech VC fund and see major global investors rally around our vision to back entrepreneurs building digital champions across Africa. We have built a strong track record in the region through our first fund with investments in 11 tech & tech-enabled startups, including the soonicorn, Sabi, Expensya or Jexport”, said Fatoumata Ba.
“Our current portfolio companies are 56% women-led, 54% francophone and provide strong evidence of how these technology champions can positively contribute in solving key market failures and creating jobs in healthcare, logistics, financial services, retail, food & agro mobility or the creative industry. Janngo Capital Startup Fund will play a critical role in improving access to early-stage capital for tech entrepreneurs in a more equal way, on a continent still attracting less than 2% of the global VC fund”, she added.
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What are anchor investors saying?
Commenting on the partnership with JCSF, European Investment Bank Vice President, Ambroise Fayolle said “Africa has some of the world’s fastest-growing economies and a young, fast-growing population. We believe we can improve its living standards and social progress by supporting entrepreneurship and innovation. That is why we are pleased to partner again with Janngo Capital Startup Fund through our Boost Africa Initiative.”
As for Stefan Nalletamby, the African Development Bank’s Director for Financial Sector Development, he said “the Janngo Fund can drive the transformation from a more traditional business ecosystem into a dynamic, youth-driven, and technology-focused entrepreneurial community. Africa is experiencing rapid mobile penetration with Android and other platforms. Janngo Start-up Fund provides huge opportunities to develop innovative and high-growth-driven start-ups and SMEs and our investment under the Boost Africa Program will help fill the severe scarcity of risk capital for the new and upcoming first generation of venture capital funds targeting early-stage businesses.”
“With its investment in Janngo Capital Start-up Fund, PROPARCO, via FISEA +, the AFD Group facility advised by Proparco and part of the Choose Africa initiative, is partnering with a fund manager that can bring both essential financing and strong mentoring to early-stage businesses in Africa with a rare focus on the Francophone West African region,” Jérémie Ceyrac, Head of Private Equity at Proparco stated.
“Proparco is strongly committed to supporting the new generation of entrepreneurs in Francophone Africa, where investment for start-ups lags behind their peers in other parts of the continent. Janngo’s innovative approach of operating a start-up studio was also a key convincing factor, presenting a unique way to incubate businesses that can overcome gaps in the current local market. Last but not least, we are proud to partner with a female-led fund manager that seeks to contribute to diminishing the existing gender gap in terms of start-up financing,” he added.