OpenseedVC Launches $10 Million Fund for African Startups

OpenseedVC, a new venture capital firm launched in 2024, has raised the first part of its $10 million fund aimed at early-stage startups in Africa and Europe. 

This is the firm’s inaugural fund, and it focuses on backing founders with significant expertise in their fields, a trend that highlights the growing importance of experienced entrepreneurs in Africa’s tech scene. The firm plans to complete the second phase of fundraising by May next year.

Maria Rotilu, a general partner at OpenseedVC, explained their investment approach to TechCabal, saying, that they ask three main questions before investing: How big is the opportunity? Why this team—what makes them uniquely qualified? And why now?

Based in London, OpenseedVC will invest up to $150,000 in startups involved in B2B software, artificial intelligence, fintech, digital health, and the future of work. The firm has already made investments in two AI startups, one in Nigeria and one in the UK.

OpenseedVC’s strategy stems from the understanding that a lack of domain expertise is a leading cause of startup failures. Therefore, they prioritise founders who have a deep understanding of their markets and the skills to tackle its challenges.

Maria Rotilu, who founded OpenseedVC, says the firm targets startups with high potential for success, supported by the founders’ relevant skills and experience. This approach aims to ensure that investments go to businesses capable of solving significant, scalable problems.

The launch of OpenseedVC offers a new funding source for African startups, which saw a 33% drop in funding in 2023, raising only about $3.2 billion. 

Rotilu acknowledged the tough fundraising climate but expressed confidence in the potential of companies that emerge in challenging times. She stated, “We want to be the first believers in these experienced operators to give [them] a great head start, with capital and an extensive operator network that supports (them] from the start to the launch of their technology companies.”

OpenseedVC has built a network of over 50 seasoned operators across its investment sectors to support the founders. The firm aims to balance its investments between Europe and sub-Saharan Africa, striving for a diverse portfolio.