A Nostalgic Walk Along Memory Lane: How Far Have We Come Since The First All-Female Investors Panel At The Angel Fair Africa?

By Kanini Mutooni, Africa Managing Director, DRK Basis

I keep in mind the primary all-female investor panel at Angel Honest Africa 2016 prefer it was yesterday. At that time limit, the one feminine fund supervisor I used to be even conscious of was the wonderful Sapna Shah, Common Accomplice (GP) at Novastar. The time period “feminine fund supervisor” was nonetheless thought-about a misnomer on the time. Sapna and I sat on the panel collectively and talked about early-stage enterprise capital, and though I can’t recall the small print of our dialog, what stood out in my thoughts was our need to vary the equation within the ecosystem. I needed to discover a approach to assist extra feminine buyers just because extra feminine buyers would sometimes imply extra feminine entrepreneurs, in the end resulting in larger wealth- creation throughout the continent Africa. 

Reflecting alone entrepreneurial journey, probably the most vivid reminiscence I’ve was one loneliness. As a Black feminine founder in Berlin, working a SaaS tech platform with no tech expertise—however with a kick-ass MBA and about 9 years of funding banking expertise within the metropolis of  London—I believed I had the credentials to make issues a bit bit simpler as a founder. Nonetheless, it was extremely difficult to boost ample capital, scale my firm, construct a sustainable product, and attain profitability (all whereas elevating my three kids, all aged three and beneath). I finally bought the corporate after a 5- yr run and that have has turn into the first motive I do the work I do at the moment, supporting and investing in entrepreneurs as a feminine investor. I totally perceive the trials they face as I’ve lived them.

The Progress of Feminine Fund Managers in Africa

After my foray in entrepreneuship reached its conclusion by means of a small exit, I launched into a brand new function as an impression investor, beginning off by Chairing the International Innovation Fund, a $300m impression fund and one of many first impression automobiles established by 5 G7 nations. Across the similar time, I additionally had the chance to hitch the inaugral funding committee of the Africa Enterprise Fund, a $200m car offering financing to agribusiness corporations throughout Africa.

It was by means of these experiences, serving as an investor, with the facility to deploy capital, on the opposite facet of the desk that I noticed how necessary it was to have a girls really seated on the funding desk, making important capital deployment selections.

Feminine fund managers and buyers at the moment are rising as key gamers in Africa’s monetary ecosystem, driving investments in sectors equivalent to fintech, healthcare, and agribusiness. These girls are altering the face of the funding trade by adopting a gender-lens method that prioritizes women-led companies and firms that empower underserved communities. Their impression helps to foster inclusive progress and prolong funding alternatives into areas that have been beforehand neglected by mainstream capital.

Regardless of their rising profile, feminine fund managers and buyers nonetheless face a number of challenges:

1. Entry to Networks: Many feminine fund managers and buyers wrestle to interrupt into the male-dominated networks that management entry to institutional capital.
2. Bias in Fundraising: Gender bias results in skepticism across the talents of feminine fund managers to supervise large-scale funds, which might decelerate the fundraising course of.
3. Observe Report and Institutional Backing: With out in depth observe data, many feminine fund managers discover it tough to safe large-scale investments from institutional gamers.
4. Non-Conventional Fund Constructions: Feminine fund managers are sometimes extra more likely to undertake revolutionary fund constructions, equivalent to native forex funds, which can not at all times align with conventional investor expectations.

Regardless of these challenges, a number of feminine fund managers have succeeded in constructing corporations and driving impactful investments over the past 10 years. Under are a couple of that stand out with revolutionary approaches to their fund construction and fundraising course of.

Tokunboh Ishmael – Alitheia Capital

• Notable Investments: Alitheia IDF Fund has made key investments in corporations equivalent to Pula, a microinsurance agency for smallholder farmers, and Lifestores Healthcare, a healthtech firm bettering entry to drugs.
• Exits: Whereas Alitheia IDF Fund remains to be rising, its investments are anticipated to result in long-term successes.

Maya Horgan Famodu – Ingressive Capital

• Notable Investments: Ingressive Capital has invested in high-growth tech corporations like Paystack, acquired by Stripe for $200 million, and Tizeti, an web service supplier.
• Exits: Paystack’s acquisition stands as a landmark exit for the agency.

The record ought to be for much longer and  to be honest, there are numerous feminine buyers within the ecosystem however these feminine buyers are notable for his or her exits and the businesses that they selected to again which have been vastly profitable.

There are gamers who’re attempting to create change within the investor ecosystem and The Mastercard Basis Africa Progress Fund (MFAGF) is one such stakeholder. By offering working capital loans and backing non-vanilla fund constructions like open-ended funds and funds that tie carry to impression milestones, the MFAGF performs a catalytic function in serving to female-led funds thrive.  I proudly serve on the MFGAF as an Funding Committee Member and the fund’s assist has been important in growing feminine GPs entry to catalytic capital. The working capital loans provided by MFAGF present essential liquidity, serving to rising fund managers scale operations whereas searching for long-term funding companions.

The fund has additionally supported the institution of Versatile Fund Constructions by supporting native forex funds and open-ended funds, MFAGF permits managers to construction their investments in ways in which align higher with Africa’s distinctive market dynamics, mitigating dangers equivalent to forex volatility.

The Moremi Initiative Accelerator is one other key participant in fostering the expansion of feminine fund managers throughout Africa. Designed to empower girls in management, the Moremi Initiative has been instrumental in figuring out and creating the subsequent technology of feminine leaders, together with these within the monetary and funding sectors. By means of its accelerator applications, Moremi supplies mentorship, coaching, and entry to networks, enabling rising feminine fund managers to construct the abilities and confidence wanted to boost capital, handle funds, and scale their impression.

Moremi’s give attention to capacity-building for girls in finance ensures that contributors not solely acquire technical experience but additionally develop the management qualities obligatory to achieve a extremely aggressive discipline. By connecting feminine fund managers with international buyers, Moremi performs an important function in increasing their entry to capital and growing their visibility inside the broader funding ecosystem. The accelerator’s holistic method to nurturing feminine expertise is crucial in making a extra inclusive and diversified funding panorama throughout Africa.

One other influential initiatives driving capital towards feminine fund managers and buyers in Africa is the 2X Problem, launched by the G7 Growth Finance Establishments (DFIs). The 2X Problem wais dedicated to mobilizing $15 billion by 2022 to assist girls in enterprise, together with feminine fund managers, entrepreneurs, and women-led enterprises throughout rising markets. This initiative has been instrumental in creating an enabling surroundings for feminine fund managers by offering entry to capital, technical help, and visibility.

At Draper Richard Kaplan (DRK) Africa, we’re dedicated to making sure that at the very least 30% of our capital is directed in direction of feminine entrepreneurs yearly. This isn’t only a checkbox for us; it’s a core a part of how we function, deeply rooted in a transparent gender lens funding thesis. As DRK’s Managing Director for Africa, my function is to ensure that our investments mirror the mission set by our founders—backing entrepreneurs who’re tackling the continent’s largest challenges however have the least entry to capital. Most of the time, these are feminine founders who’re underserved and neglected, and we’re right here to vary that.

The expansion of feminine fund managers and buyers in Africa isn’t just about reaching gender equality within the monetary sector; it’s about driving financial growth, fostering innovation, and creating inclusive progress. Feminine fund managers usually put money into early-stage, small, and medium-sized corporations—companies which can be important to Africa’s long-term financial prosperity however are often neglected by conventional buyers. These companies are the engines of job creation, innovation, and social impression. Analysis reveals that feminine fund managers usually tend to put money into women-led companies and in sectors that instantly deal with the wants of underserved communities, equivalent to healthcare, training, and monetary inclusion. By backing these corporations, feminine fund managers are serving to to bridge the gender financing hole and be certain that extra numerous voices and options are supported. Draper Richard Kaplan’s (Africa’s) method to allocate a minimal of at the very least 30% of our capital every year to feminine entrepreneurs is an instance of an investor who really stroll their discuss by means of a well-defined gender lens thesis. My duty as DRK’s Managing Director for Africa is to e

 I’m satisfied that I had I recognized a couple of feminine buyers throughout my time as an entreprenuer all these years in the past,  I might have vastly benefitted not simply from their capital however their expertise and mentorship alongside my entreprenurial journey. I’ve a dream that within the subsequent 20 years each feminine entreprenuer who embarks on fixing an intractable downside could have entry to a feminine investor who takes an actual curiosity of their success.

Furthermore, having extra feminine fund managers and buyers may help shift the narrative in Africa’s funding ecosystem, encouraging a broader vary of funding methods and fostering extra resilient, inclusive economies. Inevitably, feminine buyers have an uncanny potential to steadiness monetary returns with social impression and makes them uniquely positioned to contribute to Africa’s sustainable progress.

Ultimately, supporting extra feminine buyers in Africa isn’t just a matter of fairness; it’s a strategic crucial for constructing a sturdy, inclusive, and forward-looking funding panorama that advantages all. I really feel very excited and privileged to be part of this promising journey. 

I might be convening this yr’s all-female investor panel on the 11^th Angel Honest Africa from November 7^th to eight^th 2024 at www.trific.co.ke in Nairobi, Kenya.