Private Equity News Africa

Black Ostrich Ventures Launches Africa Fund

Black Ostrich Ventures, a US-based venture capital firm, has launched a $20 million pre-seed and seed stage fund to support African founders to grow their businesses in the cleantech, supply chain, ag-tech, and edtech sectors.

The fund is backed by LPs in New York and undisclosed high-net-worth individuals in Los Angeles.

The firm will provide cheques ranging from $50,000 to $200,000, with a follow-on investment of about $1 million for Series A rounds.

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Image: Ajani Windsor-Areago

While most of the investment in African tech startups is concentrated in Nigeria, South Africa, Egypt, and Kenya, Black Ostrich Ventures is taking a different approach by focusing its investments in Tanzania, Zambia, Morocco, and Uganda.

According to BD Funding Tracker, tech startups in the “Big Four” markets accounted for 92.13% of all investment raised on the continent in the first half of 2023. However, most exits do not happen in these markets.

The firm aims to support African startups outside the “Big Four” markets, which have been receiving most of the attention on the continent.

The sectors that will receive investments are cleantech, supply chain, agritech, and edtech. This is another diversion from the sectors, like fintech, that have been receiving most of the attention on the continent.

Ajani Windsor-Areago, General Partner of Black Ostrich Ventures, said the firm will work with founders in an unusual way by surrounding them with growth experts and marketing experts to help them grow their businesses.

Black Ostrich Ventures is creating a new equity model for venture capital in Africa that is focused on sustainability, social impact, and profitability. The firm’s innovative approach to investment and support is helping entrepreneurs across the continent thrive and grow.

Windsor-Areago launched a startup advisory firm, White Umbrella Ventures, in May. Based in Los Angeles and San Francisco, White Umbrella Ventures helps grow startups by offering support from fundraising-as-a-service to marketing, advisory, and sales.

He currently sits on the board of two Ugandan and Moroccan startups that are operating in the media and social commerce sectors respectively. He previously worked at Lagos-based VC firm, Platform Capital and Expert Dojo, another US-based firm that invests in Africa.


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