Enza Capital, a venture capital firm dedicated to nurturing African startups, has successfully closed two funding rounds, amassing a total of $58 million, as reported by TechCrunch. The primary objective of these funds is to support startups that are pioneering the convergence of offline and online experiences while simultaneously driving the digital transformation of crucial industries across Africa.
Enza Capital embarked on its venture capital journey back in 2019 when it launched its maiden early-stage fund. This fund was carefully crafted to identify, provide backing to, and contribute to the growth of startups that possessed the potential to redefine their respective sectors.
The firm primarily focused its attention on seed, pre-seed, and seed-stage startups, and its inaugural fund remains actively engaged in this space. Over the years, Enza Capital has made investments spanning a wide spectrum of industries, including fintech, logistics, healthcare, human resources, and climate technology.
Some noteworthy investments made by Enza Capital include Guidewheel, a climate tech startup based in Kenya, and Shara, a Kenyan fintech company that received support during its pre-seed stage. Furthermore, the firm co-led Series A investments in Ivorian fintech venture Djamo and Kenyan insurtech firm Turaco.
Explaining the investment strategy of Enza Capital, Mike Mompi, co-founder and managing partner, stated:
“We have ample capital to make substantial investments. At times, we enter early and continue to invest in our portfolio companies. Additionally, we have the growth fund, which primarily targets later-stage opportunities, enabling us to invest at any stage and collaborate with our core funds in existing portfolio companies, thus maintaining long-term relationships with our investments.”
Enza Capital’s portfolio boasts companies like Autochek, Jumba, Craydel, Cloudline, and SeamlessHR, which have received investments ranging from $250,000 to $5 million. These companies may also be eligible for follow-on investments from Enza Growth Capital’s later-stage investment vehicle, which can contribute up to $20 million per company.
Now in its second fund, introduced this year, Enza Capital’s evolution as an investor is evident. With increased participation in follow-on investments, particularly in Series B rounds, the firm now identifies itself as a multi-stage investor.
However, despite this evolution, the African VC firm remains steadfast in its commitment to the same industries that have been its focus from the outset.
About Enza Capital
Since its inception, Enza Capital has made 48 investments in 31 companies across ten African markets. These markets include Kenya, Uganda, Rwanda, Nigeria, Ghana, Ivory Coast, Senegal, Morocco, Egypt, and South Africa. With a presence spanning the African continent, the firm plays a pivotal role in nurturing innovation and fostering economic growth.
Looking ahead, the African VC firm is gearing up to expand its reach. Although headquartered in Nairobi, it boasts an eight-person remote team spread across Nairobi, Johannesburg, London, and New York. The firm aims to strengthen its presence in Lagos, as well as in at least one Francophone-African city, to better support its portfolio companies.
To achieve this, Enza Capital plans to onboard additional talented individuals to work closely with startups across various departments. Additionally, the firm is introducing its founder-partner program, a unique initiative that allows founders and leadership teams from portfolio companies to become co-owners of the company.
Enza Capital has committed to allocating 10% of its carry pool back to these founders, underscoring its dedication to cultivating enduring, mutually beneficial partnerships that transcend the conventional venture capital arrangements.
The distribution of this carry pool among founders will be determined by various factors, including referrals and the size of their initial and follow-on investments. This initiative aims to foster a stronger bond between Enza Capital and the founders it supports, nurturing a culture of collaboration and shared success.
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