Kenya’s Venture Capital firm, Uncap, has announced earmarking a whopping $33 million fund aimed at fostering the growth of early-stage small and medium-sized enterprises (SMEs) across Africa.
Uncap CEO, Franziska Reh, who made the announcement on a statement, said the firm will collaborate with key partners to unlock new growth opportunities for African businesses.
She stated that the fund presents a “unique non-dilutive, revenue-based financing model that provides crucial support to early-stage businesses without requiring equity stakes.”
“These partnerships include O-Farms, a circular agriculture program run by Bopinc and funded by the Ikea Foundation, and SAIS, an agritech initiative supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ.
“The fund has garnered support from global institutions, including the Bill & Melinda Gates Foundation and the Bayer Foundation. This backing underscores the potential impact of Uncap’s innovative approach to SME financing in Africa.”
“This initiative by Uncap represents a significant step towards addressing the financing challenges faced by African SMEs. By offering a flexible, non-dilutive funding model, the fund aims to empower entrepreneurs to grow their businesses while retaining control.
“As Africa’s SME sector continues to evolve, innovative financing solutions like Unconventional Capital could play a crucial role in driving economic growth and development across the continent,” Reh added.
Uncap’s track record includes investments in 87 companies across seven sub-Saharan African countries with their portfolio spanning eight sectors, including agriculture, education, food and beverages, media and entertainment.
According to the CEO, to qualify for funding, intending SMEs must be registered limited companies in Kenya, Rwanda, Uganda, or Nigeria and should have at least two years of operational history and a minimum revenue of $89,000 in the past 12 months.