African VC firm Enza Capital raises $58 million, launches “Founder Partner” program

Enza Capital, a venture capital firm that focuses on supporting African startups, has closed two funds, raising a total of $58 million according to a TechCrunch report. The fund is aimed at startups bridging the gap between offline and online experiences while also digitizing key industries in Africa.

Enza Capital embarked on its venture capital journey in 2019 by launching an early-stage fund. This fund was designed to identify, support, and help build startups that had the potential to redefine their respective categories.

The African VC firm primarily targeted seed, pre-seed and seed-stage startups, and its first fund is still actively involved in this space. Over the years, it has invested in a diverse range of industries including fintech, logistics, health, human capital, and climate tech.

Some of Enza Capital’s major investments include Guidewheel, a Kenyan climate tech startup, Shara, a Kenyan fintech company, also received support from the VC company in its pre-seed stage. The company has also co-led Series A investments in Ivorian fintech, Djamo, and Kenyan insurtech Turaco.

Speaking on how Enza Capital investment vehicles function, the co-founder and managing partner, Mike Mompi said,

We have sufficient capital to write meaningful checks. Sometimes, we’re going in early and also follow-on in our companies. Then we have the growth fund, which is mostly a later-stage vehicle, where we can invest at any stage and co-invest with the core funds in existing portfolio companies, thereby staying with our companies for a long time.

Autochek, Jumba, Craydel, Cloudline, and SeamlessHR are also among Enza Capital’s portfolio firms that have received investments ranging from $250,000 to $5 million. Furthermore, these companies may be eligible for follow-on investments from Enza Growth Capital’s later-stage investment vehicle that can contribute up to $20 million per company.

Now in its second fund, which was introduced this year, Enza Capital’s growth as an investor is clear. Due to its expanded participation in follow-on investments, notably in Series B rounds, the company now views itself as a multi-stage investor.

Although The African VC firm continues to be committed to the same industries that have been its focus since the beginning notwithstanding this change.

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About Enza Capital

Enza Capital has made 48 investments in 31 companies across 10 African markets since its inception. These markets include Kenya, Uganda, Rwanda, Nigeria, Ghana, Ivory Coast, Senegal, Morocco, Egypt, and South Africa. Its presence spans the African continent, making it a key player in fostering innovation and economic growth

For future plans, The African VC firm is expanding its reach. Although it’s based in Nairobi, it has an eight-person remote team in Nairobi, Johannesburg, London, and New York. The firm intends to strengthen its presence in Lagos as well as in at least one Francophone-African city to better support its portfolio companies.

To achieve this, they plan to hire more talented individuals to work closely with startups in different departments. Enza Capital is also introducing its founder-partner program. This unique initiative enables founders and leadership teams from portfolio companies to become co-owners of the company.

Enza Capital will allocate 10% of its carry pool back to these founders, underlining its commitment to building long-lasting, mutually beneficial partnerships that go beyond the usual venture capital arrangements.

The distribution of this carry pool among founders will depend on several factors, including referrals and the size of their initial and follow-on investments. This initiative aims to create a stronger bond between Enza Capital and the founders it supports, fostering a spirit of collaboration and shared success.