In an exciting move aimed at further accelerating the growth of Africa's burgeoning technology sector, Launch Africa Ventures has introduced the Launch Africa Mezzanine Impact Fund. This newly launched fund will provide mezzanine growth capital to technology companies across Africa and the Gulf Cooperation Council (GCC) region, with a focus on fostering innovation and expanding opportunities for mergers and acquisitions (M&A), management buyouts (MBOs), and market expansion strategies. With a commitment to advancing sustainable development, this fund is poised to make a significant impact on the entrepreneurial landscape of the region.

Launch Africa Ventures: A Leader in Early-Stage Investments

Launch Africa Ventures has quickly established itself as a leading venture capital firm with a keen focus on early-stage investments. The firm was founded in July 2020 by Zachariah George and Janade du Plessis, with Margaret O’Connor serving as chairperson. In a relatively short period, the firm has made a profound impact on Africa’s startup ecosystem, having successfully closed its inaugural fund, Launch Africa Ventures Fund I, in March 2022 with US$36.3 million raised from 238 retail and institutional investors across 40 countries. That fund resulted in 133 investments, setting the stage for continued growth.

By June 2024, the company had already invested US$4.3 million in 16 African startups through its second fund, Fund II, demonstrating its ongoing commitment to fostering the continent's top technology-driven ventures. These efforts aim to position startups as market leaders, building a robust pipeline of African tech companies with global reach.

Introducing the Mezzanine Impact Fund

The Launch Africa Mezzanine Impact Fund represents the firm’s next bold step toward driving growth in the African and GCC tech ecosystems. As part of this initiative, Launch Africa Ventures seeks to bridge the substantial funding gap faced by African businesses, particularly those at the growth stage. It is estimated that African businesses face a funding shortfall of over USD $400 billion, which this fund aims to address by providing tailored mezzanine financing solutions to high-growth tech companies that demonstrate strong Environmental, Social, and Governance (ESG) principles.

The primary focus of the fund is to support companies that are not only profitable but also committed to improving the quality of life for people in Africa by driving job creation, fostering sustainable development, and helping businesses scale while preserving founders' equity. The goal is to help innovators retain commercial ownership of their companies, ensuring that equity remains in the hands of African entrepreneurs.

Anthony Moore Appointed Executive Chairman

To lead this ambitious initiative, Launch Africa Ventures has appointed Anthony Moore as the Executive Chairman of the Launch Africa Mezzanine Impact Fund. Moore brings a wealth of experience from his time as Managing Director and Head of Investment Banking at Goldman Sachs International (UK and Asia), along with a track record of success as chairman of various companies, including Environmental Energy Group, Evrensel Capital Partners, and MCC Global. His expertise in investment banking and corporate governance, combined with his deep understanding of global financial markets, positions him as the ideal leader for this initiative.

Moore, together with a newly assembled debt solutions team, will guide the fund’s investment strategy, focusing on high-impact technology companies across Africa. One of the key objectives is to foster deeper connections between the African and GCC tech ecosystems, helping to unlock opportunities for M&A, market expansion, and more diverse growth strategies across the region.

A Strategic Vision for Africa’s Tech Growth

Launch Africa Ventures' commitment to promoting businesses that operate with strong ESG principles is a central theme of the Mezzanine Impact Fund. By investing in companies that align with sustainable development goals (SDGs), the fund aims to promote gender equality, job creation, and economic diversification across the African continent. The firm sees a unique opportunity to facilitate the scaling of Africa’s most impactful technology businesses through tailored mezzanine financing solutions that support both financial success and positive societal outcomes.

The Launch Africa Mezzanine Impact Fund's value proposition extends beyond simply offering capital; it also involves working closely with portfolio companies to enhance governance, improve management practices, and implement strategies that drive operational optimization. This holistic approach seeks to unlock long-term growth potential for African and GCC tech companies, allowing them to become competitive on the global stage.

The Launch Africa Mezzanine Impact Fund represents a pivotal step in driving innovation and growth across Africa's tech ecosystem. Under Anthony Moore's leadership, the fund will provide crucial growth capital to ESG-driven technology companies, empowering African innovators, preserving founder equity, and fostering sustainable economic opportunities. With this new initiative, Launch Africa Ventures is set to shape the future of Africa’s high-growth businesses and unlock significant growth potential.