According to TechCrunch, Lagos-based Ventures Platform has raised $64 million so far for its second fund, targeting a final close of $75 million. The Nigerian government is investing through its iDICE program, marking the first time the government has ever backed a VC fund. Other limited partners include IFC, British International Investment, and former Y Combinator CEO Michael Seibel. The firm, which launched its first $46 million fund in 2022, will now pursue Series A investments alongside its traditional pre-seed and seed focus. Ventures Platform has already backed over 90 African startups, including notable successes like Moniepoint and Paystack.
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Government betting on homegrown talent
Here’s the thing about Nigeria’s government joining as an LP—it’s way more significant than just another check. This is the same government that watched local unicorns like Flutterwave and Paystack get built, then saw foreign investors reap most of the returns. Now they’re putting skin in the game through the iDICE program, which basically says “we believe in our own ecosystem enough to invest directly.” That’s huge validation for other local institutional investors who’ve been sitting on the sidelines.
Filling the Series A gap
Ventures Platform’s move into Series A couldn’t come at a better time. African startups have been hitting what investors call the “Series A cliff”—plenty of seed funding available, but then crickets when it’s time to scale. Silicon Valley firms pulled back hard over the past couple years, and local funds often lacked the firepower for bigger rounds. Now Ventures Platform can write larger checks and take more meaningful ownership stakes. For founders who’ve been struggling to bridge that gap, this is basically a lifeline.
Why this fund succeeded when others struggled
Let’s be real—fundraising has been brutal for emerging managers globally, and African VCs have faced particular skepticism. So how did Ventures Platform pull this off? Founder Kola Aina says 70% of their first fund investors returned, which is practically unheard of in this climate. They’ve also returned capital from four of their six vintages between 2016 and 2022. When LPs see actual cash coming back rather than just paper valuations, they get a lot more comfortable writing that next check.
The bigger picture for African tech
Aina calls Africa the “purest asymmetric play for non-consensus alpha”—which is venture speak for “massive upside if you’re willing to be patient.” He’s not wrong. By 2050, one in four humans will be African, and GDP growth is double the U.S. rate. But most value creation is still offline. The real opportunity isn’t just copying Western business models—it’s building what Aina calls “painkiller” businesses that solve for non-consumption. Think Moniepoint bringing banking to places traditional banks ignored, or SeamlessHR modernizing employment across the continent.
The timing here is interesting too. As other reports have noted, African tech funding dropped from $5 billion in 2021 to $2 billion last year. But the best funds often raise in downturns. Ventures Platform isn’t just doubling down on Nigeria either—they’re expanding into Francophone West Africa and North Africa. That regional diversification could be key to finding the next breakout companies before everyone else does.
