After its first investments in 2018, venture capitalist Tofino decided to take it to the next level by launching a multi-sector fund. The vehicle will target startups in countries such as Egypt and Nigeria.

Venture capital firm Tofino Capital, focused on financing startups in emerging markets, announced the first closing at $5 million of its $10 million target size investment fund. The vehicle plans to invest between $50,000 and $500,000 in pre-seed and seed stage companies in Africa, Asia, Latin America and the Middle East.

“The main thesis of the Fund is to target large markets, with hundreds of millions of people who have minimal access to venture capital. So that doesn’t include China, India, Brazil […] We’re talking about Bangladesh, Egypt, Nigeria, Pakistan, the Philippines, Mexico,” detailed Eliot Pence, co-founder of Tofino Capital.

Boosting business efficiency

After its first investments in 2018, the company has backed 11 companies over the years. The idea of creating a venture capital fund emerged in 2021, and was realized a few months later.

The vehicle will focus primarily on companies focused on providing financial services and logistics companies. It targets between 30 and 40 companies and five investments in late-stage companies. The final closing of the fund is expected by the end of the year.

According to Pence, the next phase of Africa’s growth will be with middle-market companies, not start-ups like Flutterwave or Andela, which have raised considerable amounts of money over a period of time.

By CM