AAIC Investment Pte. Ltd., a Japanese investment firm based in Singapore, recently announced the first Closing of Africa Innovation & Healthcare Fund VCC –AHF2, its second fund focused on investing in African startups. AHF 2 will begin investing and will keep accepting subscriptions until it reaches its goal of USD 150 million.
Asahi Intecc Co., Ltd, Eisai Inc., Ohara Pharmaeuticals, and other prominent Japanese trading companies were among the first investors in the AHF2.
According to Partech research, African start-ups generated a total of USD 5.24 billion in funding in 2021, catching up quickly to the income generated by Japanese start-ups.
AHF2 focuses on healthcare, which is a key SDG Goal (SDG 3) and a sector that is experiencing fast development in the fields of telemedicine and AI-led diagnosis as a result of the Coronavirus outbreak. Other fields of investment include Fintech, whose products and services play a critical role in speeding up the growth of the Healthcare industry.
In 2017, AAIC Investment launched the Africa Healthcare Fund (AHF1), its first Africa-concentrated fund. To date, the fund has invested in and backed the increase of 30 start-ups, raising a total of USD 47 million. One of its portfolio companies, Chipper Cash, a fintech start-up, became a unicorn in 2021.
In 2015, AHF1 became the first Japanese-affiliated VC to operate out of Kenya. In December 2020 and March 2022, the investment manager opened two more offices in Nigeria and South Africa, respectively.
It is also in the course of developing an office in Egypt. In 2021, Kenya, Nigeria, South Africa, and Egypt will account for nearly 74 percent of all African start-up investments (Partech). With the launch of AHF2, AAIC Investment aims to broaden its operational footprint to include all African regions.
As the backbone of the African economy, startups stand to benefit greatly from these funds. Startups will receive the necessary funding while also contributing significantly to the continent’s economic growth.
fund’s name: Africa Innovation and Healthcare Fund (AIF) (AHF2)
The countries of focus include Kenya, Nigeria, South Africa, and Egypt.
Intended sectors: Medical and healthcare sectors, as well as technology-driven companies in other social infrastructure fields such as finance, insurance, and logistics.
Investment stages: Series A and B investments
Ticket price range: $5 million to $50 million