After working at Jumia as a former executive at the Nigeria office and founding executive director of the Ivorian office, Fatoumata Baa veteran of the African tech space, announced that her company Janngo Capital raised 60 million euros (~$63 million) in 2019. The company, seeks to “invest 50% of the proceeds in women-founded, co-founded or beneficial companies”, having received 15 million euros from the European Investment Bank (EIB) as is a fixed investor and plans to close the fund next year.
While things don’t go as planned, the fund’s just-announced first-time closure is remarkable: it take 10.5 million euros from other anchor investors, the African Development Bank Group (AfDB) and Boost Africa last December. Later, other limited partners such as Proparco, Burda Principal Investments (BPI), Muller Medien and a former partner of KKR joined in, reducing the total amount of committed capital by 34 million euros.
The company, in a statement, said, “The Janngo Capital Startup Fund plans to invest in startups that will enable Africans to improve their access to essential goods and services, and small and medium-sized businesses. Africa to improve access to markets and capital – and create decent jobs at scale, with a focus on women and young people. “
Every report, women are better entrepreneurs than men – about 58% of Africa’s self-employed population is women, and they contribute about 13% of the continent’s GDP). However, they face a significant funding gap of around $42 billion, and last year women-only founders received less than 1% of the nearly $5 billion raised by African startups.
Janngo Capital is one of the few female-owned, owned and led private equity and venture capital firms that see a clear investment opportunity in addressing Africa’s gender funding gap by long-term commitment to supporting women-founded and female-led startups. Other funds with identical plays include FirstCheck Africa and The capital city of Alitheia; AfDB and EIB are limited partners of the latter.
However, this four-year-old venture capital firm doesn’t just invest in women-founded and female-led teams. While it plans to invest up to 50% of our new fund in startups that are established, co-founded, or benefit women, it still pursues a “gender equality” approach. , Bâ, the company’s founder and executive chairman, told TechCrunch – the portfolio’s fund is currently 56% founded and led by women. According to her, being a female-founded, female-owned and female-led fund manager means that “gender equality is both an ethics and a business case because of the $42 billion funding gap for venture capitalists.” Women entrepreneurs in Africa create $300 billion in missed opportunities. wise.”
The fund’s thesis is evident in some of the startups it’s backed. To date, Janngo Capital has invested in 11 startups across Africa, including Sabi, a growing B2B e-commerce platform. Sabi with a female executive. Other startups, including fintech Expensya and Ivorian’s online freight marketplace Jexport, all have male founders.
â explains that the fund, which targets 15-30% ownership, is designed to support 25 companies over its lifetime. “The sooner we invest, the more likely our ownership will be as we normally plan to continue,” she said. Janngo Capital invests from angel capital for late stage VC/PE. From concept to pre-seed stage, it offers between €50,000 and €150,000; for seed or pre-Series A, the female-led company cuts checks from €150,000 to €1.5 million. Meanwhile, growth-stage startups seeking Series A to Series B investments can receive between €1.5 million and €5 million from the company.
Like most funds that cut the ticket size in this range, Janngo Capital is field agnostic. But it is particularly interested in innovation across French- and English-speaking Africa, occurring in sectors such as healthcare, logistics, fintech services, retail, food and agriculture , and mobile. Similar sized African companies that have achieved the first close of their various funds in recent months include Launch Africa, The capital city of Oui, Adventure platform, Differential and by Google Africa Investment Fund.
Asked when Janngo hopes to reach the finals, “Announcing a final closing date is not the market norm, so we don’t plan on going public about it; however, the target to 2023 is realistic”.