Japanese investors have been circling Africa’s startup scene for a while, and they are not slowing down.
This week, Uncovered Fund teamed up with Monex Ventures to launch a new ¥3 billion ($20 million) fund for early-stage companies focused on finance, distribution, mobility, and sustainability across Africa and the Middle East.
Uncovered previously backed well-known fintech and retail startups such as Piggyvest, Gozem, Lemfi, Yoco, amongst others. But by branching into other sectors, the Fund could be exploring other paths to bridge African startups with corporate Japan.
Uncovered is one of several prominent Japanese investors that has taken an interest in the continent. Per Briter, Japanese investors, including corporate VCs, have put more than $1.8 billion into startups across 14 African countries since 2015.
Beyond private investment firms, Japanese corporate VCs, like Toyota Tsusho and SBI Holdings, have also held interests in Africa, often pairing investment with distribution deals. These investors often look for entry points into markets where their corporations can plug in directly.
Zoom out: The takeaway here is that Japanese investors are hedging against a shrinking population at home, betting on the use of tech to directly solve or innovate around structural issues that can scale with Africa’s growing population and mass market. Regardless of the incentive, this is much-needed patient capital for early-stage African founders.
