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This venture capital company plans to increase its SSA footprint with $31mn injection
Africa-focused Venture Capital firm, TLcom has announced that it has secured an additional $31 million for its Sub-Saharan Africa (SSA) focused fund, increasing it to $71 million, so what do they plan to do with it? Founder and Managing Partner at TLcom Capital, Maurizio Caio joins CNBC Africa for more.
Thu, 06 Feb 2020 10:45:35 GMT
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AI Generated Summary
- TLcom Capital secures an additional $31 million for its SSA focused fund, aiming to expand its footprint in key African markets like Nigeria and Egypt.
- Maurizio Caio emphasizes the importance of ambitious business models and understanding market dynamics to attract venture capital funding.
- Strategic acquisitions identified as the preferred exit strategy, with opportunities for growth in stock exchanges and promising markets like Ethiopia.
TLcom Capital, an Africa-focused Venture Capital firm, has made headlines with the announcement of securing an additional $31 million for its Sub-Saharan Africa (SSA) focused fund, increasing it to a total of $71 million. Founder and Managing Partner at TLcom Capital, Maurizio Caio, recently sat down with CNBC Africa to discuss the company's plans for the future and the investment landscape in Africa. The firm is set to increase its presence in Sub-Saharan Africa with a strategic focus on countries like Nigeria and Egypt. The key theme of the conversation revolved around the potential for African entrepreneurs to leverage technology and innovative business models to drive growth and generate significant returns for investors. Caio emphasized the importance of understanding the market and developing ambitious business models to attract venture capital funding. He debunked the myth of high technology risk in Africa, stating that often the challenge lies in the design of the business model rather than the technology itself. TLcom Capital's strategy is to support entrepreneurs who can address fundamental challenges in various sectors by providing capital and expertise. The firm remains region-agnostic but sees opportunities for growth in key African markets like Nigeria and Egypt. Caio highlighted the potential for strategic acquisitions as the preferred exit strategy for successful investments. He also underscored the importance of liquidity and evolution in stock exchanges like the Nairobi Securities Exchange to support the growth of startups in Africa. Ethiopia emerged as a promising market with recent developments opening up opportunities for investment. TLcom Capital's $31 million injection aims to demonstrate that African entrepreneurs can deliver world-class returns and attract more private capital to the continent. The firm aims to dispel the narrative around impact-focused investments and focus on generating value and sustainable growth. Caio encouraged entrepreneurs to look beyond individual stories like Jumia and recognize that success or failure is not determined by geography but by the quality of the business model and execution. TLcom Capital's significant investment signals a vote of confidence in the African startup ecosystem and paves the way for increased innovation and growth in the region.
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