Partech Reaches First Close of €245 Million for Partech Africa II, Doubling Down on Successful Strategy
Introduction
Partech, a global venture capital firm with multiple funds, has reached its first close of €245 million (~$263 million) for Partech Africa II. This milestone makes it the largest Africa-focused fund to date, surpassing the initial target of €230 million (~$250 million). The fund is set to double the size of its African venture portfolio and continue backing successful startups in various sectors.
The Strategy Behind Partech Africa II
Partech’s strategy for Partech Africa II remains consistent with their previous funds. They will focus on investing in more than 20 startups across fintech, healthtech, logistics, mobility, edtech, and other areas. The firm has doubled the upper end of its ticket size to €15 million to accommodate larger investments.
Diverse Pool of Limited Partners
The fund’s limited partners come from diverse profiles, including DFIs, corporates, African funds of funds, family offices, HNIs, and existing and new investors. Anchor investor KfW, the German Development Bank, is among the notable participants. The diversity of these investors sends a powerful signal about the confidence in Partech’s strategy.
Global Platform Support
Partech Africa II benefits from the firm’s robust global platform, which supports crucial functions such as business development and portfolio support, founders community, ESG, finance, compliance, and legal. This infrastructure is essential for scaling successful startups across regions.
Expansion into New Locations
The team is expanding into new locations, with Lagos being one of the next stops. This move aims to increase proximity to key markets and further support the growth of African startups.
Partnership with International Organizations
Partech’s collaboration with development financial institutions (DFIs) such as IFC, KfW, and Proparco underscores their commitment to supporting sustainable economic growth in Africa.
Growing Importance of Africa in Venture Capital
The success of Partech Africa II highlights the growing importance of Africa in venture capital. With a rising number of startups achieving significant milestones, the continent is increasingly becoming a destination for investments.
Conclusion
Partech’s achievement in reaching the first close of €245 million for Partech Africa II marks a significant milestone in their journey to support African innovation. Their strategy, global platform support, and diverse pool of limited partners position them well for success in this growing market.
A Look at the Key Players Involved
- Partech: A global venture capital firm with multiple funds focused on supporting startups across various sectors.
- KfW: The German Development Bank, serving as an anchor investor and demonstrating confidence in Partech’s strategy.
- International Finance Corporation (IFC): A member of the World Bank Group, investing in Partech Africa II to support sustainable economic growth in Africa.
- Proparco: An international financial institution focused on supporting the private sector in developing countries.
Africa’s Growing Significance in Venture Capital
The success of Partech Africa II is a testament to Africa’s growing importance in venture capital. The continent offers significant opportunities for investments, with startups achieving milestones that rival those in more established markets.
Expanding into New Locations and Markets
Partech’s expansion into new locations, such as Lagos, aims to increase proximity to key markets and further support the growth of African startups. This move demonstrates their commitment to the region and its potential for innovation.
Conclusion
Partech’s achievement in reaching the first close of €245 million for Partech Africa II is a significant milestone in supporting African innovation. Their strategy, global platform support, and diverse pool of limited partners position them well for success in this growing market.
Recommendations for Further Reading
- "The State of Venture Capital in Africa" – A report by Partech and Briter Bridges highlighting the growth of venture capital in Africa.
- "African Startups: The Next Wave" – An article discussing the potential of African startups and their increasing attractiveness to investors.
Conclusion
Partech’s achievement in reaching the first close of €245 million for Partech Africa II is a testament to their commitment to supporting African innovation. As venture capital continues to grow in importance, the continent will likely remain a key destination for investments.
About the Author
The author is Tage Kene-Okafor, a reporter at TechCrunch covering startups and venture capital in Africa. With his expertise and insight into the region’s tech scene, he provides readers with valuable information on emerging trends and opportunities.
