The International Finance Corporation (IFC) has reaffirmed its commitment to Africa’s rapidly growing digital economy by investing up to $6 million in equity into the Ventures Platform Pan-African Fund II (VP II).

This strategic investment is set to empower early-stage technology startups across the continent, promoting innovation, job creation, and economic growth.

Fuelling Africa’s Digital Entrepreneurship

With Africa’s startup ecosystem growing at an unprecedented rate, the need for sustainable funding has become more critical than ever.

Ventures Platform GP Limited, the fund’s managing entity, is positioned to deploy these funds across multiple African markets, with a specific focus on Nigeria.

The firm, co-founded by seasoned investors Kola Aina and Dr. Dotun Olowoporoku, aims to provide both capital and value-creation strategies to enable startups to scale and thrive.

This investment aligns seamlessly with IFC’s broader mission of supporting Africa’s digital transformation. Beyond direct capital infusion, IFC seeks to stimulate the growth of local venture capital markets through enabling frameworks, capacity-building initiatives, and supporting an environment where African startups can attract global investment.

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Ventures Platform’s Rise as a Leading VC in Africa

Founded in 2016 by Kola Aina, Ventures Platform has emerged as a frontrunner in early-stage venture capital investment in Africa.

The firm successfully raised $46 million in its inaugural fund by 2022, attracting high-net-worth individuals, institutional investors, and development finance institutions such as British International Investment (BII), Proparco, AfricaGrow, and IFC.

The second instalment of this fund, VP II, will concentrate its investments on sectors pivotal to Africa’s digital economy. These include fintech, insurtech, health tech, enterprise SaaS, and digital infrastructure—industries that have demonstrated high growth potential and the capacity to drive economic transformation across the continent.

A Proven Investment Strategy

Ventures Platform has already built an impressive portfolio, with investments in over 90 companies. Some of its notable startups include PiggyVest, PayHippo, Mono, SeamlessHR, Tizeti, and Printivo.

The firm primarily focuses on pre-seed and seed-stage investments, with increasing allocations towards Series A rounds to ensure sustained growth for high-potential businesses.

From its $46 million Fund I, Ventures Platform has already deployed $19.6 million into various startups. A significant portion—51.49%—has gone into pre-seed companies, while 40.84% has been allocated to seed-stage businesses.

The remaining 7.64% has supported pre-Series A startups. Sector-wise, fintech has led the way, securing $6.8 million in funding, followed by SaaS ($2.8 million), health tech ($2.4 million), and B2B startups ($2 million).

Additional investments totalling $7.9 million have been directed toward logistics, autotech, insurtech, and cleantech.

IFC’s Growing Role in Africa’s Startup Ecosystem

The IFC’s investment in Ventures Platform is part of a broader initiative to boost Africa’s venture capital landscape. In addition to this $6 million commitment, the IFC has been actively supporting other funds across the continent:

Flat6Labs Africa Seed Fund – IFC committed $6 million to this $85 million fund, which focuses on early-stage companies.
Lofty Alpha VC Fund – Another $6 million equity investment was made into this fund, which is targeting early-stage tech startups across Africa.
Equator Africa Fund I – IFC invested $5 million, marking its strategic entry into Africa’s climate tech venture capital sector.
P1 Ventures and Janngo Capital – The IFC participated as a limited partner in P1 Ventures’ $50 million fund and Janngo Capital’s €73 million ($78 million) second fund, both of which emphasise diverse founders and underserved regions.

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Bridging Africa’s Funding Gap

As global capital markets tighten, IFC’s investments highlight the increasing significance of local venture capital funds in bridging Africa’s early-stage funding gap.

By strengthening the venture capital ecosystem and enabling local investors, the IFC is playing a crucial role in accelerating Africa’s digital transformation and ensuring sustainable growth for its tech-driven future.

Final Thoughts

The $6 million investment in Ventures Platform Fund II is more than just a financial commitment—it’s a statement of confidence in Africa’s startup ecosystem.

As the continent continues to produce world-class startups solving unique challenges, the role of venture capital in nurturing and scaling these businesses cannot be overstated. With strategic investments and partnerships, Africa’s digital future looks brighter than ever.