Uncap has launched a €30 million fund to support small and medium-sized businesses in Africa. The fund, called Unconventional Capital, will provide non-dilutive, revenue-based financing to early-stage businesses in sectors such as agriculture, trade, logistics, climate resilience, and financial inclusion. This initiative aims to drive economic growth across the continent.

A Strategic Partnership Approach

Unconventional Capital will collaborate with key partners, including SAIS, an ag-tech initiative funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH), as well as O-Farms, a circular agriculture program run by Bopinc and funded by the Ikea Foundation. These partnerships will enable Unconventional Capital to harness its expertise and networks to better support SMEs in high-impact sectors, unlocking growth opportunities for businesses and contributing to sustainable economic growth across the continent.

Innovative Financing Model

The fund's financial model, focused on revenue-based financing rather than equity dilution, provides more flexible funding options for African businesses navigating early-stage challenges. This approach has attracted the backing of global institutions such as the Bill & Melinda Gates Foundation and the Bayer Foundation, underscoring the credibility and growing confidence in Unconventional Capital's innovative approach to alternative financing.

Separation of Financial Operations and Technology Platform

Uncap has also announced the separation of its financial operations from its proprietary technology platform, Level—a stand-alone SaaS platform designed to simplify investment management for funders and accelerators across Africa. This strategic move will allow Uncap to focus on delivering tailored financing solutions while expanding its tech-driven investment support services.

Leadership and Vision

The fund will be co-led by Uncap's current Investment Principal, Ms. Esther Ndeti, and the CEO, Ms. Franziska Reh, both of whom will serve as Managing Partners. Their combined experience and strategic vision will guide Unconventional Capital's efforts in delivering impactful financing solutions to early-stage SMEs in Africa.

Redefining SME Financing

According to Ms. Ndeti, Unconventional Capital seeks to redefine SME financing by creating an environment where more businesses can thrive in underserved markets and contribute to sustainable economic growth across the continent. "SMEs account for about 90% of African businesses, yet they face many challenges in raising capital. The inefficiency of African capital markets in effectively supporting SMEs, coupled with limited visibility to a broad investor base, continues to hinder access to essential funding for small and medium-sized enterprises across the continent," she explained.

The launch of Unconventional Capital marks a significant milestone in Uncap's mission to support high-potential businesses driving economic growth in Africa. With its innovative financing model, strategic partnerships, and experienced leadership, the fund is well-positioned to address the capital gaps faced by early-stage SMEs and contribute to sustainable economic growth across the continent.