Brigitta Bihari The Rwanda Innovation Fund is a venture capital fund that aims to invest in tech-enabled startups in Rwanda and the rest of Africa. The Fund’s goal is to support the growth and development of innovative businesses poised to disrupt traditional markets and drive regional economic growth. The Fund’s focus is on investing in startups that have the potential to create significant social and economic impact, as well as generate high financial returns for its investors. Angaza Capital manages the Fund.
The Fund is specifically interested in investing in tech-enabled startups in the growth stage that have a proven product or service and have demonstrated traction in their respective markets. Their target investment size typically ranges from $250,000 to $2 million, with a typical hold period of 5-7 years. They are particularly interested in technology startups in ESG-friendly sectors.
Geographically, the Fund’s portfolio is divided into three categories:
- Rwanda Based: The company’s operations or headquarters are in Rwanda.
- Regional/East Africa focus: The company’s headquarters are located in any of the EAC’s member nations, or it conducts business there.
- Technology transfer from foreign businesses establishing local operators and companies operating in the larger African market.
Other criteria:
1. Focus on growth-stage companies (post-early stage and before maturity that allows them to access the banking industry and capital markets funding). The investments are made at seed round to B-round
2. Company traction and metrics
– Companies that can demonstrate yearly revenue between U$50,000 and U$5 million.
– Companies should be able to show momentum in revenue, regulatory approvals, impressive awards with unique validation, IP, or patented innovation.
– Companies must have the ability to scale across borders.
3. Management Team: The Fund prioritizes companies with a solid and experienced management team with a track record of success in their respective industries.
4. Sectors: ESG-friendly sectors, including but not limited to: fintech, edtech, SME productivity and digitization, clean mobility, agtech, healthcare, and clean energy.
5. Other considerations: Companies must have a strong technological background.
Exit Strategy
The Fund looks for companies that have the potential for a strategic acquisition or IPO within 5-7 years
of our investment.
