Enza Capital is a venture capital firm focused on backing startups in Africa that are working to digitize key industries and bring the offline world online. Founded in 2019, the firm initially launched an early-stage fund to support startups in the pre-seed and seed stages. Since then, Enza Capital has expanded its investments to include larger follow-on investments in Series B companies. The firm has made 48 investments in 31 companies spanning eight African markets, including Kenya, Uganda, Nigeria, Ghana, Ivory Coast, Senegal, Egypt, and South Africa.
Investments and focus areas
Enza Capital invests in a variety of industries, including fintech, logistics, health, human capital, and climate tech. The firm seeks out category-defining startups that have the potential to make a significant impact in these sectors. Through its investments, Enza Capital aims to support companies that are driving innovation and digital transformation across Africa.
Investment size and follow-on investments
Enza Capital typically invests between $250,000 and $5 million in its portfolio companies. This capital is used to help startups scale and grow their businesses. Additionally, Enza Capital offers follow-on investments through its Enza Growth Capital fund, which has the capacity to invest up to $20 million per company. This allows Enza Capital to provide ongoing support to its portfolio companies at all stages of their growth.
Enza Growth Capital
Enza Growth Capital is an evergreen, later-stage investment vehicle that was launched by Enza Capital last year. This fund is designed to provide additional capital for companies that have already received initial investments from Enza Capital. With Enza Growth Capital, the firm can invest at any stage and co-invest with the core funds in existing portfolio companies. This ensures that Enza Capital can maintain long-term relationships with its portfolio companies and continue to support them as they scale.
Expansion and new offices
Enza Capital currently has an office in Nairobi, but the firm is planning to open additional offices in Lagos and a Francophone African city. These new offices will allow Enza Capital to better support its portfolio companies in these markets and provide greater proximity to the local ecosystems. With these expansions, Enza Capital also plans to hire more talent to work closely with its ventures across various departments, further strengthening the support it provides to its portfolio companies.
CTO-in-Residence program
Enza Capital has a unique program called CTO-in-Residence, which provides technical support to startups in its portfolio. The CTO-in-Residence works closely with the engineering and tech teams of these startups, both before and after investment. This program allows Enza Capital to bring in expertise and resources to help startups overcome technical challenges and accelerate their growth.
Introduction to founder partner program
Enza Capital is launching a founder partner program to further strengthen its relationships with the founders and leadership teams of its portfolio companies. Through this program, founders and leadership teams will become co-owners of the firm, effectively sharing in its success. This program aims to foster alignment and collaboration between Enza Capital and its portfolio companies, building long-term and mutually beneficial partnerships.
Benefits and purpose of founder partner program
The founder partner program has several benefits for both Enza Capital and its portfolio companies. By including founders and leadership teams as co-owners of the firm, Enza Capital is demonstrating its commitment to shared ownership and long-term success. This program also helps to align the interests of all stakeholders in the venture capital structure, including LPs, investors, management teams, and the ultimate beneficiaries of the products or services developed by these enterprises. Through the founder partner program, Enza Capital aims to create a more empathetic and collaborative investment model.
Distribution of carry pool
As part of the founder partner program, Enza Capital is allocating 10% of its carry pool back to the founders. The distribution of this carry pool will be determined based on several factors, including referrals to other businesses and the size of the first check and follow-on investments. This allocation is designed to reward and incentivize founders for their contributions to the success of Enza Capital’s portfolio companies.
Empathy and alignment with founders
Enza Capital recognizes the challenges and hardships that founders face in raising venture capital and scaling their companies. Both the co-founders and managing partners of Enza Capital have firsthand experience in these processes. By implementing the founder partner program and demonstrating empathy towards founders, Enza Capital aims to build stronger relationships based on trust and understanding. This approach sets Enza Capital apart from other investors and emphasizes the firm’s commitment to shared ownership and long-term success.
Enza Capital’s unique approach
Enza Capital’s founder partner program represents a unique approach to venture capital in Africa. By including founders and leadership teams as co-owners of the firm, Enza Capital is setting a precedent for shared ownership in the African venture capital ecosystem. This approach reflects Enza Capital’s belief in collaboration, alignment, and empathy, and the firm hopes that this model will become the norm for venture capital investing in Africa.
Enza Capital as an independent fund
Enza Capital stands out as one of the largest funds in Africa that is not backed by typical African institutional investors. While the firm hopes to see future funds with participation from traditional African LPs and global investors, Enza Capital’s independence demonstrates the maturation of the African venture capital ecosystem. Enza Capital’s limited partners include the founding partners and a diverse group of investors, ranging from private individuals and family offices to hedge funds and venture capital funds.
Future of African venture capital
Enza Capital’s founder partner program and its success in closing $58 million across its funds demonstrate the growing interest and potential of venture capital in Africa. As the African ecosystem matures, more traditional investors are likely to participate in venture capital funding, alongside the continued involvement of local investors. Enza Capital hopes to play a role in this evolution by continuing to support innovative startups and fostering a collaborative and empathetic investment model.
Limited partners of Enza’s funds
Enza Capital’s limited partners include a diverse group of investors, from private individuals, family offices, and foundations to fund of funds, hedge funds, and venture capital funds. The involvement of these limited partners demonstrates the broad range of interest and support for Enza Capital’s investment strategy and the potential of the African startup ecosystem.
