Exciting News: Japanese VCs Launch $20 Million Fund for African Startups
- A new ¥3 billion (~$20 million) fund has been launched by Japanese venture capital firms to support early-stage African startups in fintech, mobility, agri-tech, logistics, and sustainability.
- More than just providing capital, the fund aims to create strategic connections between African startups and Japanese corporate partners.
- This initiative builds on Japan’s increasing involvement in African venture capital, with notable players like Samurai Incubate Africa, Verod-Kepple, and Sony Ventures already active in the market.
Japanese venture capital firms Uncovered Fund and Monex Ventures have joined forces to establish a new fund worth ¥3 billion (approximately $20 million) to back startups in Africa and the Middle East.
The Uncovered Monex Africa Investment Partnership is focused on investing in startups within key sectors such as fintech, distribution and logistics, mobility, and sustainability, with the potential to invest up to $2 million per startup.
However, the fund’s objective goes beyond financial support. It aims to serve as a strategic link between Africa’s burgeoning tech ecosystem and Japan’s corporate giants, offering African startups access to Japanese markets, expertise, and potential business partnerships.
This collaborative approach signifies a shift in Japan’s engagement with African innovation, with Japanese VCs becoming more active in the continent’s startup scene in recent years.
For example, Samurai Incubate Africa has backed over 20 African startups in sectors like agritech, e-commerce, and financial services since its launch in 2018. Additionally, Verod-Kepple Africa Ventures closed a $60 million fund in 2024, with support from major Japanese institutions, to facilitate partnerships between portfolio companies and Japanese firms.
Corporate VCs like Sony Ventures have also entered the fray, launching a $10 million entertainment fund targeting African startups in gaming, music, and media. This growing interest reflects Japan’s transition from aid-driven to business-driven engagement with Africa.
Africa’s tech ecosystem is increasingly appealing due to its demographic advantage and innovation potential. With a projected population of 2.5 billion by 2050 and a mobile-centric market, sectors like digital finance, sustainable agriculture, and electric mobility present significant opportunities for disruption.
Moreover, there is potential for technological leapfrogging in African markets, creating space for innovations like electric vehicles and battery-as-a-service platforms, where Japanese firms can leverage their expertise.
