NewGenAngels raising sidecar funds, targets $4.5m

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Investment club NewGenAngels is raising a number of sidecar funds to allow individuals to co-invest in promising African tech startups.

NewGenAngels, which last month hosted the Africa Business Angel Forum, is hoping to raise US$4.5 million for the funds, with a minimum size of US$2 million and a maximum of US$6 million.

The sidecar funds will allow venture partners to participate in deals by co-investing with leading investors across the continent. The funds will also be open to non-members.

NewGenAngels said the idea for the funds had sprung from the fact it had missed out on a number of deals due to the time it takes to get individual angels to commit to investment rounds.

Founding partner Sean Obedih told Disrupt Africa the new structure would also establish a sidecar fund focusing specifically on impact investments.

“We have been getting requests from investors that are looking for impact investment opportunities and we are pleased to be addressing this segment,” he said.

“The rest will be conventional investments heavily focused on execution.”

Obedih said the sidecar funds would also allow NewGenAngels to engage with passive investors and lead deals, thus convincing more angels to participate in rounds.

“The sidecar funds are a crucial part of our strategy to build a world class organisation and we look forward to welcoming family offices and individual investors to be part of this exciting chapter,” he said.

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Passionate about the vibrant tech startups scene in Africa, Tom can usually be found sniffing out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem.

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