African venture capital firm Janngo Capital has closed its second fund at €73 million (about $78 million), 20% more than its initial target of €60 million (about $63 million).
The firm marked the first close of the fund at €34 million in 2022, roping in limited partners such as the African Development Bank Group (AfDB) and European Investment Bank (EIB).
Both anchor investors also participated in the fund’s second close, Janngo Capital’s founder Fatoumata Bâ told TechCrunch. They were joined by other institutional investors, three of which have an African mandate: the Mastercard Foundation Africa Growth Fund, Tunisian fund of funds ANAVA, and the endowment fund of Ghana-based university Ashesi University. The U.S. International Development Finance Corporation (DFC) and the World Bank’s International Finance Corporation (IFC) also invested.
Development finance institutions like the DFC and IFC have been instrumental in bolstering Africa’s startup ecosystem by investing in local funds that in turn support early- and growth-stage startups. Yet, local institutional investors remain reticent, so efforts by firms like Janngo to bring in local capital helps signal confidence to foreign investors.
“Africa represents 17% of the global population, yet attracts only 1%-2% of global VC funding, a share that has remained stagnant despite growth from $150 million raised a decade ago to around $4 billion-$5 billion today,” Bâ said. “If we believe tech is critical to economic development in Africa, we should have proportional access to VC. That’s why our goal wasn’t just about hitting the target or achieving oversubscription — I wanted to attract private LPs, especially African LPs.”
The firm stylizes itself as a “gender equal” investor and has so far lived up to its name. Startups founded or led by women — like Nigerian B2B e-commerce platform Sabi, which has a female CEO — make up 56% of Janngo Capital’s portfolio across both funds.
“Our thesis hasn’t changed. We’ve proven it with exits like Expensya, where we were the first VC on their cap table. Also, as a female-founded, female-led, and predominantly female-owned fund, we place high importance on investing in female entrepreneurs,” said Bâ.
“This focus is important because, while Africa has the world’s highest rate of female entrepreneurship, only a tiny share of global VC funding flows to female founders. So, showing that a high-impact thesis — directing capital to diverse founders, early-stage VC, and sectors beyond fintech — can deliver was essential for us.”