Capria, a venture capitalist supporting new impact fund managers in emerging markets, has announced the launch of a US$100 million fund to invest in African startups.
Known as Capria Emerging Managers Fund, it will invest in equity and debt funds targeting early-stage impact businesses across Africa.
According to research, impact investors managed over US$60 billion of global capital which is expected to reach US$1 trillion by 2020.
However, less than 10 per cent of impact investors are focused on early-stage investments.
The Fund will address this anomaly by expanding investment focus from micro businesses (served by microfinance) to the SMEs (small and medium enterprises), enabling local companies to scale up providing more jobs, improved livelihoods, and better access to affordable products and services.
“Capria’s goal is to empower the next generation of fund managers in emerging economies by leveraging nearly two decades of Unitus’ institutional knowledge, data and networks in successfully generating market returns while creating impact,” said Will Poole, Co-Founder and Managing Partner of Capria.
He added, “The Capria Emerging Managers Fund will invest in the best teams emerging from our pioneering Capria Accelerator program.”
Capria Accelerator, launched in September 2015, partners with the best early-stage equity and debt fund managers, provides initial investment capital, and engages in significant hands-on support to help these managers launch and operate their new investment funds.
Additionally, the fund managers benefit from the ever-increasing resources of the Capria Network, a fast-growing global network of exceptional local managers and global investors.
Two African impact fund managers were selected to take part in the inaugural accelerator.
Capria has also announced a partnered with Alitheia Identity, an impact fund manager investing in women-led businesses across Africa.
In the next 5 years, the Fund plans to invest in at least 15 impact funds, significantly expanding Capria Network’s global reach.
Capria Emerging Managers Fund is managed by Capria Ventures LLC and is based in Seattle.