Two Japanese venture capital firms, Uncovered Fund and Monex Ventures, have launched a new fund of approximately $20 million (JPY 3 billion) to back early-stage startups in Africa and the Middle East. The fund, named the Uncovered Monex Africa Investment Partnership, aims to not only provide capital but also to create a strategic bridge between the regions’ emerging tech scenes and Japan’s corporate sector.
By the Numbers
The new fund is targeting high-potential startups with significant early-stage investment:
- ~$20 Million: The total size of the new fund (JPY 3B).
- Up to $2 Million: The potential investment amount per startup.
- 4 Key Sectors: The fund will focus on finance, mobility, distribution, and sustainability.
A Bridge Between MENA/Africa and Japan
Beyond providing funding, the VCs aim to utilize the fund as a bridge between the tech ecosystems of Africa and the Middle East and Japan’s corporate giants. The initiative seeks to open new opportunities for African and Middle Eastern startups by providing them with access to Japanese markets, expertise, and potential business partnerships. Conversely, it offers an opportunity for Japanese companies to tap into high-growth innovation spaces and for the fund’s portfolio companies to form partnerships with Japanese firms looking to expand into their markets.
Targeting Foundational Infrastructure and High-Growth Sectors
The fund’s mission is to support startups that are fostering the foundational digital and physical infrastructure of their regions. It will focus on four key sectors: finance, mobility, distribution, and sustainability, with a specific interest in areas such as mobile payments, microlending, digital retail, logistics, and agri-tech.
Tapping into a Hotspot for Innovation
This launch is part of a wider shift that has seen Japanese VCs become more active in the startup ecosystems of Africa and the Middle East. Africa’s tech ecosystem is increasingly considered a hotspot for innovation, thanks to its demographic edge—with a population expected to hit 2.5 billion by 2050—and its mobile-first market, where sectors like digital finance, sustainable agriculture, and electric mobility are ready for disruption.
Source: WAYA
