African venture capital firm Enza Capital has successfully closed two funds, raising a total of $58 million. The Nairobi-based firm, which focuses on investing in startups that “organize the offline online” and “digitize key African industries,” launched its first fund in 2019, targeting pre-seed and seed-stage startups. It has since invested in fintech, logistics, health, human capital, and climate tech companies across eight African markets, including Kenya, Uganda, Nigeria, and South Africa.
Key Takeaway
African venture capital firm Enza Capital has closed $58 million across two funds and launched a founder partner program. The firm’s investments span various African markets and industries, with a focus on startups that “organize the offline online” and “digitize key African industries.” Through its multi-stage investment approach, Enza Capital provides support to startups from pre-seed to Series B, with check sizes ranging from $250,000 to $5 million. The founder partner program aims to foster alignment and collaboration while ensuring shared ownership and success for founders.
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Expanding Investments and Portfolio Companies
Enza Capital has made a total of 48 investments in 31 companies from its two funds. Its portfolio includes successful startups such as Guidewheel, a Kenyan climate tech startup that expanded to the U.S. and Mexico after a Greycroft-led Series A round. The firm also invested in Kenyan fintech Shara, providing a pre-seed check before the company raised a Series A round led by Index Ventures. Additionally, Enza Capital co-led a Series A investment in Ivorian fintech Djamo and Kenyan insurtech Turaco from its second fund.
Catering to Startups Across Stages
Enza Capital considers itself a multi-stage investor, with its focus expanding beyond pre-seed and seed-stage companies to include larger follow-on investments up to Series B. The firm’s typical investment size in its portfolio companies ranges from $250,000 to $5 million. Furthermore, through Enza Growth Capital, an evergreen, later-stage investment vehicle, the firm can invest up to $20 million per company, offering follow-on investment opportunities.
The Founder Partner Program
Enza Capital is launching its unique founder partner program, where founders and leadership teams of portfolio companies become co-owners of the firm. This program aims to build long-term and mutually beneficial partnerships by allocating 10% of its carry pool back to the founders. The distribution of this carry among founders will be based on factors such as referrals and the size of initial and follow-on investments.
Enza Capital, with its dispersed team across Nairobi, Johannesburg, London, and New York, plans to open offices in Lagos and a Francophone African city to support its portfolio companies in those markets. The firm envisions future funds including collaborations with traditional African institutional investors and hopes to attract participation from global endowments, foundations, and pension funds as the African startup ecosystem continues to mature. The firm’s limited partners consist of founding partners as well as a diverse group of investors, ranging from private individuals and family offices to hedge funds and venture capital funds.
