LoftyInc Capital Management, a venture capital firm that focuses on early-stage African companies, has announced that its third fund, LoftyInc Afropreneurs Fund 3 (LAF3), has reached its final close at $14.2 million.
The fund opened in August 2021 and closed in the first quarter of 2022, with 40% more money coming in than was needed. In eight months, the fund was raised by limited partners from its second fund, such as FBNQuest Funds, syndicates from The Green Investment Club, and high-net-worth individuals from companies like Facebook, Google, ExxonMobil, and Andela CEO Jeremy Johnson.
LoftyInc Capital will use the LAF3 to make investments ranging from Seed to Series A stage in technology-enabled enterprises that African entrepreneurs started. The company will dramatically increase the amount of its focus on investing in the most promising early-stage to growth-stage firms that are working to improve the lives of Africans via the use of innovative technology-enabled goods and services.
According to the information gathered by Techloy, LAF3 has already invested in 52 companies located all over the continent. These companies operate in the fintech, e-commerce, media, logistics, and healthcare industries. The fund’s target market is all of Africa, specifically concentrating on Nigeria and Egypt’s rapidly expanding technology ecosystems.
LoftyInc has had over 160 investments since 2011 and 6 exits. Flutterwave, an African payments firm, is LoftyInc’s first exit. Idris Ayo Bello, the managing partner, claims that it gave LPs a three-fold return on their investments, which inspired the creation of LAF3.