– Uncap has launched Unconventional Capital, a $33 million fund focused on providing non-dilutive, revenue-based financing to early-stage SMEs in Africa, enhancing flexibility without requiring equity stakes.

– The fund collaborates with partners such as SAIS and O-Farms, and has attracted support from global institutions like the Bill & Melinda Gates Foundation, reflecting growing confidence in Uncap’s financing model.

– By separating its financial operations from its tech platform, Level, Uncap aims to streamline investment management and deliver tailored financing, ultimately supporting sustainable economic growth for the 90% of African businesses that are SMEs.

Uncap has launched Unconventional Capital, a $33 million fund designed to support early-stage SMEs in Africa. This fund will provide non-dilutive, revenue-based financing, allowing businesses greater flexibility without relinquishing equity.

Notable collaborators include SAIS, an agri-tech initiative funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), and O-Farms, a circular agriculture program supported by the Ikea Foundation.

Unconventional Capital has also garnered backing from prominent global institutions, such as the Bill & Melinda Gates Foundation and the Bayer Foundation, underscoring confidence in Uncap’s innovative approach. By emphasizing revenue-based financing, the fund seeks to address the capital-raising challenges many SMEs encounter.

Uncap has separated its financial operations from its proprietary technology platform, Level, to streamline investment management for funders and accelerators across Africa. This strategic shift will enable Uncap to concentrate on providing tailored financing while enhancing tech-driven support for SMEs.

Co-led by investment principal Esther Ndeti and CEO Franziska Reh, the fund aims to foster an environment where more businesses can thrive in underserved markets. SMEs represent 90% of African businesses but often struggle to secure funding. Unconventional Capital intends to bridge this gap and contribute to sustainable economic growth in Africa, setting new standards for inclusion and innovation in financing.

Since 2019, Uncap has invested in African SMEs through its alternative financing model. The new fund will work with key partners to unlock growth opportunities.