How do companies apply for funding?
Go to our application link and fill out the form. If there is a fit with our criteria, we’ll engage within 2 weeks of application.
What is your investment focus?
Our early-stage VC fund focuses on investing in innovative startups and entrepreneurs across various sectors in Africa. We invest in companies that have the potential to solve real-world problems, have a strong business model, and are led by exceptional teams.
What is your investment process?
We invest using SAFEs or Convertible Notes. Our investment process starts with an initial screening of potential investment opportunities and a pipeline review to decide which companies to take to due diligence, where we assess the market opportunity, team, product, and financials. We then take those to our Investment Committee for final approval. This process may take up to 8 weeks and sometimes longer depending on the level of due diligence required.
What criteria does LA use in accessing Startups?
We invest our capital, time, intellectual resources, and global networks into leading B2B and B2B2C early-stage, technology-driven startups with strong management teams and scalable solutions. Ideally ready for a $5m+ Series A round within 6-24 months.
That meet the following criteria:
- Typically, must have graduated from a world-class accelerator program (not a hard requirement, but very strongly preferred).
- Doing at least $25k in Net MRR and growing at a minimum of 10% m-o-m. We cannot back ventures that are pre-revenue unless the tech and I.P. are truly transformational.
- Ready to scale outside of their home market within 12 months of our investment? We see a lot of tech ventures that remain in their home markets alone for far too long. We back globally relevant startups that have an international mindset from Day 1.
- We typically only invest in ventures that are incorporated in the U.S., U.K., Singapore, the Netherlands, and other similar investor-friendly jurisdictions. They in turn would have 100% ownership in the respective local African subsidiaries.
- Have successfully done commercial pilots, PoCs and/or are already partnered with relevant corporates like banks, insurers, telcos, retailers, media, and tech companies (we highly prefer B2B or B2B2C business models over B2C).
- Ideally ready for a $5m+ Series A round within 6-18 months.
- Our check size ranges from $250k to $1 million depending on the stage of the business. Our typical ‘entry’ valuation ranges from 5x to 10x Net ARR. ARR is usually calculated as either 12x last month’s Net Revenue or 4x the last 3 months’ Net Revenue. Only in very rare circumstances, would we look at valuations above 10x ARR.
- The core operations and team HAVE to be in an African market
We do make exceptions to these above in certain situations, but as you can see from our 130+ portfolio companies
we try and stick to what we know best from a venture-building and scaling perspective.
What investment instruments do we use?
SAFEs or Convertible Notes
What revenue stage does LA look for before investing in a startup?
We invest in businesses doing at least $25k in Net MRR and growing at a minimum of 10% m-o-m. We cannot back ventures that are pre-revenue unless the tech and I.P. are truly transformational.
$25k MRR is an absolute minimum, our preference is in the $50k MRR range.
What are your check sizes?
We typically invest up to $1M across Pre-Seed, Seed and Pre-Series A with a typical target ownership of between 5% and 20% equity.
What sectors does LA invest in?
We’re sector agnostic. We invest in a range of sectors including but not limited to fintech, edtech, healthcare, e-commerce, agtech and logistics, etc.
What stage of businesses do you invest in?
We invest in businesses that have successfully done commercial pilots, PoCs and/or are already partnered with relevant corporates like banks, insurers, telcos, retailers, media, tech companies (we highly prefer B2B or B2B2C business models over B2C).
Do you have preference in where the startups you invest in are registered/domiciled?
We typically only invest in ventures that are incorporated in the U.S., U.K., Singapore, the Netherlands and other similar investor friendly jurisdictions. They in turn would have 100% ownership in the respective local African subsidiaries.
Do you only invest in African startups?
Yes. The core operations and team of ventures we invest in HAVE to be in an African market
What is your exit strategy?
Our fund lifespan is 7-9 years and we typically exit via secondaries, M&A, trade sales, securitisation and listings.
What kind of support do you offer to portfolio companies beyond funding?
– We’ve built the largest institutional community of founders supporting each other
– Access to Executive Coaching
– Access to courses and scholarships to global business schools
– Financial analysis training