In April 2020, during the height of the pandemic, HoaQ, an angel investor syndicate, was formed in Dublin, the European city home to big tech companies like Google and Meta. It had a single goal: pooling investments from professionals to invest in early-stage African startups.
At its inception, HoaQ was run by Joe Kinvi and Nubi Kay, with its initial investments in Bamboo, a Nigerian investment startup (now at Series A). By October 2020, the attention from Paystack’s $200 million acquisition by Stripe spurred investor excitement in Africa’s tech ecosystem and grew the syndicate’s membership.
After formalising the syndicate in 2021 due to growing interest, Kinvi and Kay faced operational challenges in money movement, investment paperwork, and manual administration as they ran the syndicate part-time.
Around this time, Yewande Odumosu, now managing partner of HoaQ’s fund, joined. Odumosu was feeling constrained by the narrow fintech infrastructure focus of her previous investment syndicate.
“I realised I was referring so many people to HoaQ that I might as well invest with them too,” she said. “Over time, as I became more involved, we saw the need for a dedicated fund to back early-stage founders before deals moved too fast. That’s how the HoaQ Fund came about.”
The fund has now launched and will operate alongside the syndicate.
“The syndicate remains active for investors who want to handpick deals, while the fund caters to those who prefer passive investing,” Odumosu said. “Both share the same investment philosophy but offer different structures to accommodate varying investor preferences.”
The fund will invest between $25,000 and $50,000 in 30 founders with domain expertise and technical know-how with the potential to scale globally, and will also reserve some capital for follow-ons.
HoaQ recently secured exits from two startups: Baseline, acquired by Cloudflare, and Raenest, which delivered 600% net returns to investors—$1,000 invested returned $6,000 after fees.
“We’ve also had failed investments, but even there, we prioritised transparency and proper wind-downs,” Kinvi said. “ Two returned 20 cents on the dollar, and one returned 50 cents on the dollar. Investors appreciated the clarity and the partial refunds—many syndicates simply vanish when things go south.”
Despite its small cheque size, founders still take capital from HoaQ because of its reputation and network. Over time, HoaQ has built an angel network with thousands of operators, founders and small-time investors.
“Founders bring us into deals because of what we offer beyond money—introductions, guidance, and exposure,” Odumosu said. “We’ve co-invested with YC, Techstars, Visa Accelerator, Ventures Platform, and others. Our portfolio includes over 100 startups in the club and 17 through the fund across 7 countries.”
spoke to Yewande Odumosu, who runs the fund; Joe Kinvi, who has transitioned to running Borderless, an investment technology platform; and Folakemi Osho, who runs the angel syndicate.
This interview has been edited for length and clarity.
What prompted the shift from an angel collective model to forming a structured venture fund?
As founders, operators, and angel investors, we recognised a strong correlation between our unique experiences, which allowed us to identify compelling opportunities in the early-stage investment space. However, we soon realised that to effectively invest at the earliest stages, either before or alongside the collective, we needed dedicated early-stage capital. This insight led us to explore ways to raise that capital, ultimately resulting in the creation of a structured venture fund.
Rather than a shift, this was a natural evolution—an expansion to ensure both the fund and the collective could coexist and continue supporting exceptional founders tackling rare and transformative opportunities through technology.
How did your original network or community of angels influence the fund’s early deal sourcing?
Before the fund was established, HoaQ club had already built a strong track record of investing in exceptional teams and startups. As a result, we had access to high-quality deal flow and a steady pipeline of opportunities. Over time, we began attracting other experienced founders and receiving referrals from both our portfolio founders and the broader angel network.
As HoaQ’s reputation grew, we also saw increased interest from co-investors wanting to partner with us. This strong network continues to drive high-quality deal flow for both the club and the fund. While the fund takes a more hands-on approach, prioritising dedicated support and deeper engagement with its portfolio startups, the club plays a broader role in the ecosystem, offering strategic support through tailored events, ecosystem initiatives, and community-driven programs that benefit startups, investors, and other stakeholders.
What were the biggest growing pains in the evolution—operationally, strategically, or culturally?
The biggest difference between running a club/collective and an early-stage venture fund is the level of structure, responsibility, and engagement required. A collective operates with more flexibility—investors participate on a deal-by-deal basis, and capital is raised as opportunities arise. In contrast, a venture fund requires formal fund management, regulatory compliance, capital commitments upfront, and a more structured investment thesis. Additionally, a fund often takes a more hands-on approach with portfolio companies, providing deeper strategic support beyond capital.
Operationally, managing a fund requires setting up institutional-grade processes, handling LP relationships, ensuring compliance, and maintaining rigorous reporting standards. Unlike a collective, where investments are more ad hoc, a fund requires ongoing capital management, portfolio monitoring, and structured decision-making.
Strategically, the evolution from a collective to a fund means refining investment theses, defining portfolio construction strategies, and balancing risk across a structured fund lifecycle. The fund also needs to differentiate itself in a competitive early-stage market while maintaining access to strong deal flow.
Culturally, the transition impacts both internal operations and external relationships. Internally, it requires a mindset shift from opportunistic investing to long-term portfolio building. Externally, expectations change—founders and LPs look for deeper engagement, structured support, and a clear vision for fund performance over multiple cycles. Maintaining the community-driven spirit of the collective while adapting to the demands of fund management is a key cultural challenge.
What has been the hardest challenge in this transition?
One of the hardest challenges in this transition has been fundraising as an emerging fund manager. Unlike raising capital for a collective, where investors commit on a deal-by-deal basis, a fund requires securing long-term commitments from LPs, often in a highly competitive landscape. While there is plenty of capital in the market, early-stage funds and first-time fund managers often struggle to access it, as most LPs tend to favour established firms with multiple fund cycles behind them. The reality is that despite a strong track record and a compelling investment thesis, the ecosystem doesn’t provide enough structural support or capital allocation for new fund managers. This makes fundraising for a fund an uphill battle.
What’s your core investment thesis?
HoaQ invests in founders who are building tech and tech-enabled startups for Africa and its diaspora. Our core mission is to provide early-stage funding to entrepreneurs, specifically targeting Africa and diaspora-based founders who demonstrate technical expertise and are poised to capitalise on well-defined, substantial market opportunities, typically exceeding a market size of over $1 billion. We recognise the potential for transformation and growth within these markets and are dedicated to fuelling innovation that brings about lasting change.
What are your preferred sectors?
We are sector-agnostic but tend to focus on areas where we have significant experience or domain expertise, either personally or through our extensive network. While we remain open to opportunities across various sectors, we believe that backing outstanding teams who possess deep conviction, a unique vision, and the ability to execute is the most important factor. Our sector focus naturally aligns with where we can add the most value through our network and knowledge, but we’re always opportunistic about exceptional teams that may come from outside those areas.
Joe Kinvi and Nubi Kay
What specific criteria or signals do you look for when deciding which startups to back?
When deciding which startups to back, we look for several key criteria and signals, like exceptional founders, because we prioritise strong, capable founders with a clear vision, deep domain expertise, and the ability to execute. Their track record, passion, and resilience are critical factors. Beyond the founder, we look for a strong, complementary team with diverse skills and the ability to adapt and execute.
We also assess the size and growth potential of the market the startup is targeting. A large, expanding market with clear pain points is essential for scalability. The startup must offer a solution that is differentiated, either through technology, innovation, or an unfair advantage that sets it apart from competitors.
We also evaluate how well the business model can scale and how the startup plans to grow. We look for a clear path to profitability and market leadership. There must be strong early-stage traction, whether in the form of product-market fit, customer acquisition, or revenue, to provide confidence in the startup’s potential for success. Overall, we focus on sectors where we or our network have deep expertise, ensuring that we can provide meaningful support to the startup beyond just capital.
How do you find your deals now?
Both the club and the fund work hard and are deeply involved in sourcing and evaluating opportunities, ensuring that we consistently have access to high-quality deal flow. Our reputation in the ecosystem also attracts founders who seek us out directly. We also find quality deals through a combination of referrals from our wide network of over 750 angel investors and 100+ ecosystem stakeholders, as well as through ongoing relationships with co-investors and other venture funds. Additionally, we review pitch submissions through our website, which provides another valuable channel for discovering promising startups.
Has your approach to due diligence changed since you formalised into a fund?
Since we evolved to have both the club and the fund, our approach to due diligence has remained largely the same, with both the club and the fund adopting the same rigorous process. While the process has improved and continues to evolve, our core focus remains on backing exceptional founders. We prioritise strong teams, deep market understanding, and the ability to execute on their vision.
Although we now have more formal checks and balances in place, our approach is still rooted in the values of the club, which continues to operate alongside the fund. We conduct thorough evaluations and due diligence, but the key principle of supporting founders with hands-on, strategic guidance remains central to both the club and the fund.
What’s the most pivotal question you ask founders that helps you determine whether they’re a good fit?
One of the most pivotal questions we ask founders is: “Why are you the right person to build this company, and why now?” This helps us assess their deep conviction, the team and track record, unique insights, and ability to execute. A strong answer demonstrates not just market opportunity but also the founder’s edge, whether through experience, vision, or an unfair advantage that sets them apart.
Additionally, we ask: “What is the market opportunity you’re targeting, and how do you plan to capture and expand within it?” This helps us assess their understanding of the market potential and how well they are positioned to seize growth opportunities.
We also focus on growth by asking: “How do you envision scaling this business, and what are the key milestones to get there?” This gives insight into their strategic thinking, execution plan, and long-term vision.
Finally, one of the key questions we ask is: “What are the biggest risks you anticipate as you scale, and how do you plan to navigate them?” This helps us understand their awareness of potential challenges and their ability to think critically about risk mitigation.
You’ve made at least two recent exits. Can you share the backstory of how you discovered each startup and what gave you the conviction to invest?
Yes, Raenest and Baselime. We were very lucky to have invested in both companies, and they have one thing in common: they are exceptional founders. For Reanest, we had to persuade the founders to allow us to invest because we understood the problem they were solving. Getting global bank accounts remains a challenge for African founders and businesses, and we knew how important it was to back a company like Raenest. Last year, when Brex and Mercury kept unbanking our founders, Raenest came to the rescue. While we are no longer investors (we exited at the series A), we will continue to support Raenest and keep recommending them to startups and businesses in the ecosystem.
We met Boris of Baselime when he just started building the business. While we didn’t know much about observability as code, we understood the fundamental concept. Boris broke it down on the first call and we got it. One thing about great founders is that they are able to explain their business to a 5-year-old and an expert. That’s a skill. Baselime exited to Cloudflare, a Fortune 500 company and that’s no small feat. We were very fortunate to have invested in someone like Boris.
Joe Kinvi and Yewande Odumosu
Were these partial or full exits? Why did you decide to exit at that particular stage, and what factors influenced that timing?
These were full exits. One was a full acquisition (Baselime) while the other we exited fully at Series A (Raenest). We invested at the pre-seed and have a rule that we will consider divesting after two or more rounds. This allows us to provide returns to our investors. People invest for returns and we need to do what’s in the best interest of our investors. Considering how risky the asset class is, it’s essential to show that returns do happen. This is a good signal for the entire ecosystem.
What do you think differentiated your support from that of other investors?
What differentiates our support from that of other investors is our hands-on, founder-first approach. We don’t just provide capital—we actively engage with the startups, offering strategic guidance, introductions, and operational support tailored to their unique needs. We work closely with founders to navigate the challenges of scaling, ensuring they have the right resources and connections to succeed.
Additionally, we leverage a unique advantage: our wide community of over 750+ angel investors and 100+ ecosystem stakeholders, including co-investors from funds of all sizes and private equity across the African continent and the Diaspora. This extensive network gives our portfolio companies access to diverse expertise, partnerships, and capital, which helps them grow and scale effectively.
What truly sets us apart, however, is our unique positioning as leaders who have been operators, worked in corporate, built startups, and are investors ourselves. This combination of experiences is rare on the continent, and it allows us to provide not only financial backing but also valuable, real-world insights from all sides of the table. Our deep involvement and diverse backgrounds ensure that we’re not just passive investors but long-term partners committed to the success of the business.
Do you reserve capital for follow-on investments, and if so, how do you decide which portfolio companies merit more backing?
Yes, we reserve capital for follow-on investments. We decide which companies merit additional backing based on their traction, market opportunity, scalability, team progress, and alignment with our expertise. Investor updates, transparency, and accountability are critical in helping us assess the merit for follow-on investments. Regular updates allow us to track progress, spot potential challenges early, and understand how the startup is evolving. This transparency also helps build trust, making it easier to rally other investors for future rounds. Being accountable to investors strengthens the relationship and increases the likelihood of securing additional support when needed. If a company is meeting milestones, showing growth, and continuing to scale effectively, we’re more likely to provide further support.
What does success look like for this fund?
Success for this fund means consistently backing exceptional founders who are solving significant problems with scalable solutions. It looks like seeing our portfolio companies grow, achieve product-market fit, and reach key milestones, ultimately leading to profitable exits. Success also involves building long-term relationships with founders and co-investors, maintaining a strong reputation in the ecosystem, and contributing to the broader startup community. Ultimately, success is about generating meaningful returns for our investors while making a positive impact in the sectors in which we invest.
From angel collective to now, what’s been the biggest lesson about investing in early-stage startups?
Initially, we focused heavily on the idea and the team, but over time, we’ve come to realise that the market opportunity, a growth mindset, and the ability to adapt to market realities are just as critical—if not more so—than the initial concept. Early-stage startups face constant challenges, and success isn’t always linear. What truly matters is the team’s ability to execute, iterate, and pivot when needed to capitalise on evolving opportunities. Building strong relationships with founders, providing transparent guidance, and staying actively involved in their journey have been key in helping our portfolio companies scale.
How do you mitigate risk across a relatively small fund?
To ensure the success of the fund, we recognise several key risks, including maintaining a strong pipeline of high-quality investments, managing portfolio performance, and securing follow-on capital for growth. As a small fund, managing limited resources effectively is a critical challenge. We focus on staying lean and efficient by leveraging our network and forging strategic partnerships to maximise our reach while minimising operational costs. To mitigate these risks, we stay closely engaged with our portfolio companies, offering hands-on support to help them scale and navigate challenges.
Being a small fund also allows us to be nimble and flexible, adapting quickly to market changes and emerging opportunities. We take a hands-on approach with our founders, providing tailored support that larger funds might not be able to offer. By focusing on long-term relationships with our portfolio companies, we create a more personalised experience, ensuring we add value beyond just capital. Lastly, we prioritise continuous learning and iteration, using each investment as an opportunity to improve our processes and further enhance the value we bring to the table.
If you were starting all over again as an angel collective, what would you do differently based on your experience now?
What we are doing is working, and we wouldn’t take a different path. We built HoaQ from first principles, and that’s the approach any founders should take. We run HoaQ Club as a startup. It’s always been about the founders and our angels. Our angels invest in founders they believe in, and we listen to them by bringing companies they would invest in. Without them, there is no HoaQ Club. They are our customers. We built HoaQ Club for them. If they win, we win.
