TLDR:
- South African VC firm 4Di Capital plans to raise its third venture fund to make investments in startups across Africa.
- 4Di has a strong track record in the local venture capital market and has invested in various successful companies in South Africa and East Africa.
South African early-stage VC firm 4Di Capital is gearing up to raise its third venture fund to make seed to Series A investments in startups across the continent. The firm, established in 2009 and based in Cape Town, South Africa, specializes in the Southern and Eastern Africa region and has a team with personal experience of building companies.
4Di has invested in successful companies such as Snapt, LifeQ, Sensor Networks, and Aerobotics in South Africa, as well as in Kenyan companies Wasoko and Flare in East Africa. The firm raised its first angel fund in 2011, followed by its first venture fund in 2016, and its second venture fund in 2019, which was anchored by the SA SME Fund.
Justin Stanford, 4Di’s co-founding general partner, highlighted the firm’s focus on being the early-stage entrepreneurial investors who support founders in their journey. The second venture fund is almost fully invested, making 10 investments so far, and the firm is considering raising its next fund soon.
Despite the challenging global funding landscape, Stanford believes that the market is starting to open up again, making it a good time to seek capital. 4Di plans to explore overseas fundraising opportunities, as overseas investors are increasingly interested in the African model. The firm’s proven track record and successful portfolio companies are expected to appeal to potential LPs.
Overall, 4Di Capital’s plan to raise its third venture fund signifies its continued commitment to supporting early-stage startups in Africa and its confidence in the growth potential of the continent’s tech ecosystem.
