• Japanese VCs Uncovered Fund and Monex Ventures launched a USD 20M fund to back early-stage startups in Africa and the Middle East.
  The fund will invest up to USD 2M per startup in fintech, mobility, logistics, agri-tech, and sustainability-focused ventures.
• Beyond capital, it aims to connect African and Middle Eastern startups with Japanese corporates, markets, expertise, and potential partnerships.
  

Japanese VCs

Two Japanese VC firms, Uncovered Fund and Monex Ventures, launched a new approximately USD 20 million fund (JPY 3B). This fund aims to back early stage startups in Africa and the Middle East. 

Given the name, Uncovered Monex Africa Investment Partnership, the fund intends to invest up to USD 2 million in startups. This will be in four key sectors: finance, mobility, distribution, and sustainability. Furthermore, it will focus on areas such as mobile payments, microlending, digital retail, logistics, and agri-tech.

Beyond funding, both VCs aim to utilize the fund as a bridge between Africa’s emerging tech scene and Japan’s corporate giants. Furthermore, it seeks to open new opportunities for African and Middle Eastern startups. This is through providing access to Japanese markets, expertise, and potential business partnerships. On the other hand, it is an opportunity for Japanese companies to tap into Africa high-growth innovation spaces. Additionally, it aims to aid its portfolio companies to form partnerships with Japanese firms looking to expand into African markets.

The fund’s mission is to support startups fostering the foundation digital and physical infrastructure of their regions. Moreover, this is part of a wider shift in how Japan is interacting with African and Middle eastern innovation. Recently, Japanese VCs have become more active in both region’s startup ecosystems.

Not only that but Africa’s tech ecosystem is increasingly considered to be a hotspot for innovation. This is due to its demographic edge due to a population expected to hit 2.5 billion by 2050. Additionally, it has a mobile first market with sectors like digital finance, sustainable agriculture, and electric mobility ready for disruption.