P1 Ventures completes the second close of its second fund at a whopping $35 million. P1 Ventures, a Seed Venture Capital (VC) fund operating across Africa, has successfully completed the second close of its $35 million fund.
This milestone enables the fund to further expand its team and operations into Dakar, Senegal, and Nairobi, Kenya.
P1 Ventures Second Fund
The investment firm aims to utilize the newly raised funds to accelerate its efforts in sectors such as AI-powered Software as a Service (SaaS), recognizing Africa’s substantial economic potential in this domain. With the goal of reaching a total fund size of $50 million by its final close, P1 Ventures has welcomed the World Bank’s International Finance Corporation (IFC) as its first public institutional investor.
This partnership aims to support Africa’s most promising entrepreneurial talents by providing growth capital to early-stage tech startups, thereby facilitating their expansion and attracting follow-on funding.
In September 2023, P1 Ventures successfully closed its second fund at $25 million, securing investments from various industrial conglomerates, private companies, and general partners of global funds based in Europe and the United States. This latest investment reflects the company’s commitment to fostering innovation and growth within Africa’s tech ecosystem.
P1 Ventures Hiring Its First In-House Data Scientist
Last year, P1 Ventures took a significant step by hiring its first in-house data scientist, tasked with leading the firm’s efforts in AI-powered deal sourcing for talent and deal flow across the continent.
This initiative marks a pioneering effort among African investors, underscoring P1 Ventures’ dedication to leveraging cutting-edge technologies to drive investment opportunities.
Challenges Faced by P1 Ventures So Far
Despite challenges such as the global slowdown in venture capital and the withdrawal of foreign investors from the continent, P1 Ventures remains optimistic about the growth prospects of its portfolio companies.
With its Fund II companies achieving threefold revenue growth year on year, the firm continues to attract investments, demonstrating confidence in Africa’s tech-driven future.
What You Need To Know About P1 Ventures
P1 Ventures, established in 2020 by General Partners Mikael Hajjar and Hisham Halbouny, is an investment firm dedicated to bridging the funding gap that often hinders the growth of African startups.
With a focus on supporting the most promising African entrepreneurs, P1 Ventures seeks to empower founders utilizing emerging technologies such as generative AI to revolutionize various industries, including healthcare, banking, retail, and agriculture.
The firm prioritizes backing experienced business owners and repeat founders with validated products and proven software business models capable of efficiently generating capital and attracting early customers. P1 Ventures claims that for every dollar invested, its strategy has enabled portfolio companies to raise 35 times more follow-on capital.
P1 Ventures Boasts A Diverse Portfolio of African Companies All Over the Continent
In contrast to the prevailing trend, which predominantly channels 90% of foreign investment into Nigeria, Kenya, Egypt, and South Africa, P1 Ventures boasts a diverse portfolio of African companies spanning the entire continent.
Notable startups within the investment company’s portfolio include Yassir, a mobility and logistics platform based in Algeria; Money Fellows, a savings app from Egypt; Reliance Health, an employee healthcare platform operating in Nigeria; and Chari, an e-commerce and fintech app targeting Francophone markets.
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