P1 Ventures, a Pan-African venture capital firm, has successfully reached the first close of its second fund at $25 million. The firm secured this capital from various investors, including industrial conglomerates, private companies, fund of funds, and general partners of global funds based in the U.S. and Europe. P1 Ventures aims to finalize the fund by early next year. Founded in 2020 by Mikael Hajjar and Hisham Halbouny, P1 Ventures’ first fund focused on sectors such as e-commerce, fintech, insurtech, health tech, and SaaS industries. The second fund will continue to prioritize these sectors while also incorporating investments in artificial intelligence (AI).
Fundraising for Second Fund
P1 Ventures has successfully achieved the first close of its second fund at $25 million. This funding comes from various industry leaders, private companies, fund of funds, and general partners of global funds. The firm expects to reach the final close of the fund by early next year. The increased capital will enable P1 Ventures to continue investing in promising startups in Africa and support their growth and development.
Investors
P1 Ventures secured capital from some of Africa’s largest industrial conglomerates and private companies. Additionally, fund of funds and general partners of global funds based in the U.S. and Europe have invested in the firm’s second fund. The diverse group of investors highlights the confidence and support P1 Ventures has garnered within the industry.
Focus Areas of Second Fund
The second fund of P1 Ventures will continue to focus on sectors such as e-commerce, fintech, insurtech, health tech, and SaaS industries. These sectors have shown tremendous potential for growth and innovation in Africa. However, the firm is also expanding its investment portfolio to include artificial intelligence (AI) startups. This addition reflects P1 Ventures’ commitment to staying at the forefront of emerging technologies and supporting startups that harness the power of AI.
Addition of AI
P1 Ventures recognizes the potential of artificial intelligence (AI) in driving innovation and transforming various industries. With its second fund, the firm is actively seeking AI startups that are poised to make a significant impact in Africa and globally. By investing in AI, P1 Ventures aims to support startups that leverage this emerging technology to bypass traditional infrastructure challenges and develop products with global reach.
First Investment in AI
P1 Ventures’ first investment in the AI category is Zambian startup Nkoloso.ai. This startup utilizes satellite imagery and AI to gather data and track agricultural land. P1 Ventures believes that Nkoloso.ai represents Africa’s potential to leverage AI to overcome traditional infrastructure limitations and achieve growth in sectors such as agriculture and fast-moving consumer goods (FMCG). P1 Ventures has also backed other AI startups and portfolio companies from its second fund, further demonstrating the firm’s commitment to supporting the development of AI in Africa.
Potential of AI in Africa
P1 Ventures believes that AI presents immense potential for Africa. By leveraging AI, African companies can bypass traditional infrastructure limitations and develop products and services with global reach. This ability to export is a significant advantage for African startups, as it mitigates risks associated with single-market reliance and currency fluctuations. P1 Ventures sees AI as a catalyst for disruptive innovation in sectors such as retail, healthcare, and the creative economy, similar to how fintech revolutionized the banking sector in Africa.
Global Reach
Another key advantage of AI is its potential for global reach. P1 Ventures recognizes that African-founded software and AI businesses can develop products with customers not just within Africa but also globally. The firm points to successful examples such as Egypt-born Instabug and BioNTech-subsidiary InstaDeep, which have customers in the U.S., Europe, and other parts of the world. The global reach of AI-based businesses allows them to tap into larger markets and expand their impact beyond African borders.
Entrepreneur In Residence Program
P1 Ventures recently launched an Entrepreneur In Residence program, which provides funding and support to startups. Nkoloso.ai was one of the first startups to benefit from this program. By offering funding and incubation opportunities, P1 Ventures aims to nurture and develop startups with the potential to achieve product-market fit and scale their offerings. The program is led by Mikael Hajjar and Hisham Halbouny, who utilize their skills and expertise as past operators to guide and mentor the startups in P1 Ventures’ portfolio.
Nkoloso.ai Funding
As part of P1 Ventures’ Entrepreneur In Residence program, Nkoloso.ai received funding to support its growth and development. This investment reflects P1 Ventures’ commitment to supporting innovative startups and providing them with the resources they need to succeed. By investing in Nkoloso.ai and other startups, P1 Ventures aims to create an ecosystem that fosters entrepreneurship and drives the growth of the African startup ecosystem.
Incubation of Startups
Through its Entrepreneur In Residence program, P1 Ventures plans to incubate four additional startups in the next four years. By incubating startups, P1 Ventures provides them with the necessary support and guidance to achieve product-market fit and scale their offerings. The program is designed to help startups navigate the challenges of early-stage development and connect them with the resources they need to succeed. P1 Ventures’ focus on incubation showcases its commitment to long-term partnerships and supporting startups from inception to growth.
Contrarian Approach to VC Investment
P1 Ventures prides itself on its “contrarian” approach to venture capital (VC) investment in Africa. The firm seeks out underdogs and invests in startups that operate in markets where others may be less inclined to invest. P1 Ventures’ willingness to invest in these underdog startups sets it apart from other VC firms and allows it to support promising ventures that may otherwise be overlooked. By taking a contrarian approach, P1 Ventures aims to uncover unique investment opportunities and drive growth in untapped markets.
Investing in Underdogs
P1 Ventures is committed to investing in underdog startups that operate in markets that may be considered less popular or overlooked by other investors. The firm recognizes the value and potential of these startups, even if they may not initially attract significant attention or funding. By supporting underdogs, P1 Ventures aims to provide them with the resources, guidance, and mentorship they need to succeed and become leaders in their respective industries.
Super Early Investments
P1 Ventures distinguishes itself by making super early investments in startups, particularly in the seed stage. The firm’s ability to identify and invest in startups at an early stage reflects its deep understanding of the African startup ecosystem and its potential for growth. P1 Ventures’ early investments have contributed to the success of startups operating in Francophone Africa markets, including Yassir, Chari, and Djamo. These startups have emerged as some of the most well-funded and valuable startups in their respective countries.
Conclusion: P1 Ventures – Shaping Africa’s Innovative Future
In achieving the initial close of its second $25 million fund, P1 Ventures has showcased its commitment to nurturing and amplifying African innovation. With diverse backing from industry leaders, private firms, and international fund partners, P1 Ventures stands poised to drive groundbreaking advancements across the continent. By focusing on sectors with exponential growth potential and embracing emerging technologies like artificial intelligence, P1 Ventures not only supports African startups but also fosters a vibrant ecosystem for sustained entrepreneurial success. With an impressive track record of adding value beyond capital and a contrarian approach to investing, P1 Ventures continues to be a driving force behind Africa’s innovation renaissance, unlocking opportunities, and transforming underdog startups into category-defining businesses. Africa’s startup landscape is set to flourish, powered by P1 Ventures’ commitment to supporting entrepreneurship and innovation in the region.
