Africa’s First Fund Returners
Qui Capital, an early-stage investor in Africa, has achieved a rare feat by returning its $4 million inaugural fund to its limited partners after successfully selling some shares in Moniepoint, an African fintech unicorn.
Why does this matter: In the global investment community, it is rare for first-time funds to return capital to limited partners (LPs). This occurrence is even more exceptional in Africa, where challenging economic conditions often make it difficult for startups to achieve profitability and deliver returns to investors.
- With an initial investment of just $150,000 in Moniepoint, Qui Capital's strategic investment has yielded an impressive return of $8 million. This success has allowed Qui Capital to repay its funds and distribute subsequent profits to its limited partners.
- Similarly, 4Dx has invested in companies like Flutterwave, Andela, mPharma, and Simplifi, has also experienced significant returns on its first fund. CRE.VC has also seen success after selling some of its shares in Flutterwave and Andela.
The bottom line: The success of Qui Capital, 4Dx, and CRE.VC's return of their first funds is exceptional and underscores the growing potential within the African startup ecosystem. This evolving landscape offers promising opportunities for early-stage investors with the insight to identify and nurture groundbreaking African startups during their critical growth phases.
