TIDE Africa II LP
Customer
TIDE Africa II LP (TIDE II) is a Venture Capital fund managed by TLcom, who has successfully raised and deployed fund TIDE Africa I across eleven investments and is looking to build on this strategy by backing successful repeat founders who innovate across the continent.
Funding Objective
TIDE II’s focus lies on young companies that – driven by IT / tech solutions – disrupt inefficient business models in Africa. The strategy capitalizes on the high population growth and high mobile phone penetration on the continent, which allows for quick adoption and accelerated growth. The fund is sector agnostic and will invest in market space enablement, agritech and fintech solutions alike. The majority of business solutions tenders towards B2B. TIDE II is aligned with the 2X Challenge; application for flagship status is ongoing.
Reasons for financing
Over the past 5 years, the Venture ecosystem in Africa grew from USD 1.4bn to USD 6.5bn in total funding volume. TIDE II is the second fund in DEG’s Africa Tech and Venture Capital strategy. The fund will invest the majority of its funds in Series A and beyond, where a funding gap slows down the rapid growth of the young venture capital ecosystem in Africa.
Overall, the development impact is expected to be very significant. Expected contribution will come from the following two core categories of development, decent jobs and local income. That is due to the funds ability to drive growth in young, fast growing businesses, creating jobs and contributing to local income by souring from local suppliers and through capital expenditures
The fund is aligned with 2X Global and is supporting predominately female led and actively promoting women in the tech ecosystem in Africa. The transaction contributes to the Sustainable Development Goals, in particular SDGs 8 and 9.