Africa’s venture capital landscape is gaining momentum as Janngo Capital, a prominent VC firm known for its commitment to gender equality, recently closed its second fund with a strong showing of €73 million (approximately $78 million), surpassing its original target by 20%. Launched in 2022 with an initial €26 million, the fund has attracted a range of reputable investors, including anchor backers like the African Development Bank (AfDB) and the European Investment Bank (EIB). These core investors were later joined by other major institutions with a focus on African growth, including the Mastercard Foundation Africa Growth Fund, ANAVA, and Ashesi University’s endowment fund. International organizations, like the U.S. International Development Finance Corporation (DFC) and the World Bank’s International Finance Corporation (IFC), have also invested.
The infusion of global capital highlights the strategic significance of Janngo Capital’s vision for Africa’s startup ecosystem. Janngo’s efforts to engage local investors amid an investment landscape largely supported by international development finance institutions showcase its influence in cultivating investor confidence across both local and international platforms.
Africa’s Share of Global VC Funding: The Push for Parity
Despite Africa representing 17% of the global population, it currently receives a minimal 1-2% of global venture capital funding, which has largely remained static over recent years despite notable growth—from $150 million ten years ago to between $4 billion and $5 billion today. Fatoumata Bâ, founder of Janngo Capital, explained, “If we believe tech is crucial to economic development in Africa, we should ensure proportional access to venture capital. For us, exceeding the funding target wasn’t just about the numbers; it was about bringing private investors, especially from within Africa, on board.”
This commitment is particularly relevant to Janngo’s philosophy, as the VC firm operates under a “gender-equal” investment thesis. Women-founded or women-led companies represent a significant portion—56%—of Janngo Capital’s investment portfolio, underscoring its dedication to bridging the gender gap in venture capital. Nigerian B2B e-commerce company Sabi, helmed by a female CEO, exemplifies the firm’s focus on female leadership in its portfolio companies.
Janngo’s Investment Strategy: Beyond Fintech and Supporting Female Entrepreneurship
Fatoumata Bâ’s vision has remained focused on driving economic development through diversified investments beyond the fintech sector. “Africa has the highest rate of female entrepreneurship globally, yet only a tiny fraction of global VC funds reach women founders,” Bâ remarked. “We’ve built our thesis on directing capital towards diverse founders, early-stage companies, and underfunded sectors to demonstrate that high-impact investments can achieve successful outcomes.”
Janngo’s “gender-equal” approach is not just a social stance but also a proven investment model, with successful exits from companies like Expensya, which Janngo backed from its earliest stages. As a female-founded, female-led, and predominantly female-owned VC, Janngo remains steadfast in fostering inclusive growth within Africa’s tech ecosystem.
Expanded Portfolio Goals and Funding Scope
Janngo Capital originally aimed to support 25 startups with its second fund but now plans to invest in an additional 10 to 15 companies over the next five years. This would bring its total portfolio size to around 40 companies, all focusing on early-stage to Series B funding. Janngo typically takes a 15% to 30% ownership stake in its investments, aligning with its strategy to nurture sustainable growth.
Since its establishment in 2018, Janngo Capital has deployed investments in more than 30 projects across 21 companies, sometimes participating in Series B rounds to reinforce its early commitments. In its first fund, Janngo managed $10 million, which enabled it to seed 11 startups, including notable ventures like Expensya and Sabi. The second fund allowed Janngo to further support these companies during their Series B fundraising rounds.
Sectors of Focus: Building a Diverse Investment Portfolio
Janngo’s investments are strategically spread across essential sectors that directly impact Africa’s economic landscape, such as healthcare, logistics, financial services, retail, agritech, mobility, and the creator economy. Its wide-ranging sector focus reflects the firm’s goal of supporting a diverse array of industries that contribute to socio-economic development. By targeting sectors crucial to Africa’s needs, Janngo ensures its investments drive impact, creating a lasting and transformative effect.
The firm maintains its presence with offices in Abidjan, Mauritius, Tunis, and Paris, underscoring its extensive reach and capability to manage investments across multiple African regions and beyond.
The Broader Impact of Janngo Capital’s Gender-Equal VC Model
Janngo Capital’s approach to “gender-equal” venture capital signals an impactful shift within the African tech and startup ecosystem. In a continent where female entrepreneurship is notably high, yet women-led startups receive minimal venture funding, Janngo’s focus on gender inclusion sets a precedent for future investment strategies in Africa. By successfully raising a significant fund and consistently prioritizing gender-diverse leadership in its portfolio, Janngo provides a roadmap for investors looking to drive equitable economic growth on the continent.
In collaboration with international finance bodies like the IFC, DFC, AfDB, and others, Janngo Capital highlights the role of development finance in strengthening Africa’s venture capital infrastructure. Moreover, its efforts to attract local investors serve as a beacon of confidence, signaling to international investors that Africa’s emerging markets are ripe for sustained capital inflow.
Final Thoughts: Janngo’s Vision for an Inclusive VC Ecosystem in Africa
As Janngo Capital forges ahead with its second fund, its investment in startups founded or led by women stands out as both a testament to its values and a core aspect of its investment thesis. By championing gender equality and supporting high-impact sectors, Janngo sets itself apart as a key player in the African venture capital scene. With an eye on inclusive growth and a firm commitment to empowering women entrepreneurs, Janngo Capital is leading the way toward a future where African innovation and talent can flourish with robust and gender-balanced backing.
As Africa’s startup ecosystem continues to grow, Janngo Capital’s latest funding round affirms its position as a trailblazer for gender-equal venture capital in Africa, promising a more diverse and dynamic future for the continent’s tech industry.
