VC firm TLcom Capital plans to invest in Web3, crypto and DeFi as well as enter Egypt through its new fund, with a capital of 70 million USD raised so far. The news was first reported on Tech Crunch. The total amount to be raised for its second fund is 150 million USD. This will be invested in early stage and late stage startups. The firm, whose portfolio companies are all based in Nigeria or Kenya, is looking to use the fund to branch out to other areas of the continent, with Egypt as one of its prime targets.
While TLcom is focused on start-ups in fintech, mobility, agriculture, healthcare, education and e-commerce, in the interview with TechCrunch they stated it is also interested in venturing into Web3.0 crypto and DeFi (explainer).
As per TechCrunch the firm has reached the first close of $70 million. It’s almost the equivalent of what TLcom Capital raised in the TIDE Africa Fund, its first fund that achieved its first close in 2017 and final close in February 2020.
Maurizio Caio told TechCrunch that the second fund is expected to reach a second close later this year. When closed, it will represent the largest fundraising yet for the two-decade-old firm, which has $350 million AUM across Africa and Europe with offices in Lagos, Nairobi and London. It will also position the investor to become one of the largest independent VC firms fully dedicated to the continent.
The firm has already invested in 11 startups from its first fund. They include Andela, Ajua, Autochek, Ilara Health, Kobo360, Okra, Pula, Shara, Terragon Group, Twiga and uLesson.
TLcom’s average investment per startup is around $6 million.
That said, TLcom–whose team includes Caio, senior partner Omobola Johnson, partners Ido Sum and Andreata Muforo says it wants to add an extra 20 early-stage startups to its portfolio. Ticket sizes in these companies will range from $500,000 to $15 million.