Pan-African venture capital firm, LoftyInc Capital, has announced the first close of $43 million for its new LoftyInc Alpha Fund.

According to the VC, the fund is a late-seed focused investment vehicle that will drive growth for Africa’s most promising tech startups across key geographies, including:

The fund is coming at a time of a renewed call for home-grown solutions to the capital shortages facing African entrepreneurs as total funding raised declined by 29% in 2024.

FUNDING | African Startups Raised $2.2 Billion in Venture Funding in 2024 – a 29% Drop from 2023

A closer look reveals that 2024’s relative underperformance was largely due to a sluggish start to the year, with just under $800 million raised in H1 2024https://t.co/06M2VPVBCo pic.twitter.com/iwHg3ddEVb

— BitKE (@BitcoinKE) January 9, 2025

Foreign investments also continue to pull out, most recently the MasterCard Foundation, which cut funding to African startups, not to mention funding cuts across the continent by USAID.

FUNDING | 54 Collective, An African-Focussed Venture Studio, to Shut Down Startup Incubator after MasterCard Cuts Funding

The Mastercard Foundation’s funding has been essential to 54 Collective’s operations, supporting its venture studio, Gen F accelerator, and Entrepreneur… pic.twitter.com/nRbkS8rNTd

— BitKE (@BitcoinKE) March 3, 2025

LoftyInc, operating in Nigeria, Egypt, and Kenya, is one of the pioneering and most successful investors in Africa’s venture capital ecosystem with a portfolio of over 100 startups across the continent. It has backed notable startups including:

LIST | Senegalese 🇸🇳 Fintech, Wave, is the Only African Company Among Y Combinator’s ‘Top 50 Highest-Earning Startups of 2024’

“Revenue is the clearest indicator of a startup’s success, and we’re excited to see so many different types of companies represented.” – CEO,… pic.twitter.com/rLyfJZDVQt

— BitKE (@BitcoinKE) May 9, 2024

According to the VC, the Alpha Fund builds upon insights from earlier funds, emphasizing seed investments that empower entrepreneurs to create resilient businesses with scalable growth. It will focus on key sectors, including:

highlighting the diverse opportunities available across Africa.

The fund attracted a diverse and strategic investor base, including commitments from Middle Eastern and African sovereign wealth funds such as:

and others.

Development Financial Institutions (DFI) investors include:

The Fund is supported by returning limited partners, including:

have joined, reflecting a strong synergy between regional and global investors committed to advancing Africa’s tech ecosystem.