LoftyInc Capital, a leading venture capital firm, has successfully reached the first close of its third and largest fund, LoftyInc Alpha. The fund aims to support late seed and Series A startups across Africa, marking a strategic shift in the firm’s investment focus. LoftyInc has previously invested in high-growth companies such as Flutterwave, Moove, Reliance Health, TalentQL, OmniRetail, and Thndr.
Institutional Backing and Investment Mandate
LoftyInc Alpha has received significant backing from prominent development finance institutions, including Proparco, the International Finance Corporation (IFC), Dutch development bank FMO, AfricaGrow, and First Close Partners. Other notable limited partners include Anava Funds of Funds, Egypt’s MSMEDA, European family offices, and African high-net-worth individuals.
Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC, emphasized the importance of the fund in strengthening Africa’s venture capital ecosystem. “This investment will provide seed-stage equity financing to tech startups across Africa, including nascent markets such as Francophone Africa. The Alpha Fund will help develop the venture capital ecosystem across Africa and create a pipeline of investment projects that can attract later-stage investors to the region, which is underserved by global venture capital,” he stated.
Bridging the Funding Gap to Series A
Historically, LoftyInc has focused on pre-seed and seed-stage startups. However, with African startups struggling to secure Series A funding, the firm is stepping in to bridge this gap.
“At pre-seed and seed, there’s a lot of hype, but by Series A, the questions investors ask are very different. Our goal is to come in at seed, but our mandate is to help you get to Series A. We want to be the firm that gets startups over that hump,” said Idris Ayodeji Bello, Founder and Managing Partner at LoftyInc Capital, in an interview with TechCrunch.
The strategic shift comes amid a broader decline in funding for African startups, aligning with a global slowdown in venture capital activity. By focusing on this crucial stage, LoftyInc also positions itself for quicker exits to Series A investors such as TLCom and Partech. The firm has already achieved 14 exits from early bets, including companies like Flutterwave, Appruve, and Reliance Health.
Expansion and Sector Focus
LoftyInc has steadily expanded its investment scope beyond Nigeria to a pan-African approach. At least 30% of the new fund will be deployed in East Africa, North Africa, and Francophone Africa, where it already has portfolio companies such as Ejara, Chefaa, and Gahez Market. The firm will maintain a sector-agnostic strategy, with a particular focus on healthtech, retail, deep tech, and artificial intelligence.
Strengthened Leadership and Future Outlook
To support its growing ambitions, LoftyInc has expanded its leadership team, adding Mariam Kamel and Kevin Simmons as general partners, both of whom bring extensive investment banking and venture capital expertise. Meanwhile, Marsha Wulff and Michael Oluwagbemi will continue managing LoftyInc’s previous fund.
Reflecting on the firm’s journey, Bello highlighted the role of African professionals and experienced entrepreneurs in LoftyInc’s early funds. “Our previous funds were backed primarily by African professionals and experienced entrepreneurs who not only provided capital but also leveraged their networks and industry expertise to help startups thrive—establishing the foundation for institutionalizing our investment approach.”
Despite a challenging fundraising climate, LoftyInc has surpassed its first-close target, attracting new institutional investors while maintaining the commitment of its existing backers. “This latest raise positions us to scale our vision: empowering Afropreneurs who build transformative, tech-driven solutions for Africa’s everyday economy,” Bello concluded.
