Nairobi-Based Venture Capital Fund Backed By IFC To Finance Local Start Ups

Kenyan start-ups will now have a chance of being financed by institutional investors after a Nairobi based venture capital fund has pooled together investors. Antler East Africa, the venture capital fund, is raising $15 million from institutional investors including the International Finance Corporation (IFC). The funds will be channelled towards boosting local and regional start-ups.

Each selected company by the company’s investment committee receives $100,000 in exchange for a 20 per cent stake. IFC will give Antler a total of $2 million with the rest of the money coming from other investors.

“The fund is seeking to raise $15 million (Sh1.6 billion) in capital commitments. IFC has proposed an equity investment of up to $1.5 million (Sh166 million) … through Catalyst and $0.5 million (Sh55 million) through We-Fi,” IFC said in its investment disclosures.

Women Entrepreneurs Finance Initiative (We-Fi) is designed to launch and grow female-owned companies.

“The blended finance co-investment will contribute to accelerating the fund manager’s support to early-stage women-owned/managed start-ups by setting up women entrepreneurship targets that ensure these start-ups are an ongoing and dedicated focus of the fund,” IFC said.

Just like other top cities in Africa, Nairobi is has a vibrant start-ups ecosystem, bringing together entrepreneurs and investors in fields such as digital payments, entertainment and e-commerce. IFCs monetary support will improve the environment for startups in East Africa.

Antler’s main objective will be to invest in young companies in East Africa.