African Investment and Catalyzing Engagement from the US

Tl;dr

Investment in Africa should be reframed as a strategic opportunity for the US—given China’s soft colonialism, it is riskier not to enter than to enter. The following paper proposes framing African investment through this new lens, explores execution strategies, and channels through which to invest. 

1. Overview

Venture capital investment in emerging markets, particularly the African startup ecosystem, remains significantly underdeveloped. Despite growing recognition of Africa’s strategic and economic importance, U.S.-based venture capital (VC) firms continue allocating minimal resources to startups from the continent. This document outlines a framework for addressing this investment shortfall, focusing on increasing capital flows to African fund managers and positioning the continent as a strategic priority for U.S. defense spending and broader geopolitical interests.

2. Lackluster VC Investment in Africa

VC investment in African startups is significantly lagging compared to other regions, highlighting a gap that needs addressing, key contributing factors include (but are not limited to) the following: 

• Lack of Mandate: Most U.S.-based venture capital firms lack the mandate to invest in African startups. While Africa is witnessing growth in venture funding, in 2022, the continent only accounted for around 1.2% of the global venture capital value, with $5.2 billion raised across 786 deals. In contrast, global venture funding reached $445 billion during the same period ​(AVCA, CIO Africa). U.S. VC firms tend to focus on established markets where they have historical success and can operate within known parameters, further sidelining African opportunities.

• Risk Appetite: Perceived political and economic risks also deter U.S. investors. According to the African Private Equity and Venture Capital Association (AVCA), political instability, regulatory hurdles, and currency volatility are often cited as reasons investors remain cautious. This perception has led to a low-risk appetite for African startups, even though Africa has shown a strong capacity for resilience. 

• Cultural and Market Insight: Cultural and market knowledge gaps also pose challenges. While international investors contributed to 78% of Africa’s venture capital in 2022, much of this was funneled through local partners with on-the-ground expertise​ (AVCA, World Economic Forum). U.S. VCs often lack this critical understanding, which results in missed opportunities to capitalize on the continent’s unique growth trajectories. Even when African startups incorporate in the U.S. or have American co-founders, the absence of local insight frequently deters U.S. investors.

3. Empowering Local Fund Managers

If VC investment into African startups is to increase, there needs to be a shift toward empowering local fund managers who have on-the-ground expertise. These fund managers possess the market knowledge and networks to identify, invest in, and grow successful African companies. The solution is two-fold:

1. Increasing Access to Capital for African Fund Managers: Fund managers based in Africa need access to a greater pool of capital, particularly from U.S. limited partners (LPs). By providing more resources to these professionals, U.S. investors can better allocate venture dollars toward high-potential African startups.

2. Tapping into a Broader Range of LPs: Opportunities exist to engage with various categories of LPs, including university endowments, family offices, mutual funds, and philanthropic organizations. Establishing stronger ties between African fund managers and these LPs could dramatically increase regional capital flows.

4. Expanding Funding Channels

To increase capital inflows, several strategies should be considered:

• Investment Reports and ROI Highlights: Regular reporting on the return on investment (ROI) from African ventures can help demystify the market for potential LPs. Data from African unicorns like Flutterwave and Jumia have shown that investments on the continent can yield outsized returns compared to other markets.

• Deal Syndication with U.S. Investors: Establishing partnerships between African venture capitalists and U.S. investors through deal syndication can significantly increase capital flow. This could be achieved via Special Purpose Vehicles (SPVs), where U.S. investors and local investors can participate in African startup deals. Syndication spreads the risk across a broader investor base and allows U.S. investors to co-invest with partners who have deep insights into the local market. Syndicated deals, mainly through SPVs, can also provide flexibility in structuring investments, making it more attractive for U.S. venture capital firms hesitant to take direct exposure to African startups.

• Strategic Events: Host exclusive investor events tailored to showcase African investment opportunities that can increase awareness and access. These events can serve as platforms for African startups to demonstrate their growth potential and highlight success stories, easing concerns about risk.

• Investor Roadshows in Africa: Organizing investor roadshows across major African cities such as Lagos, Nairobi, Cape Town, and Accra would allow U.S. and global investors to interact directly with local fund managers and promising startups. These roadshows provide a platform to showcase the growth potential of African ventures, highlight successful case studies, and demonstrate how on-the-ground expertise mitigates perceived risks. Additionally, these roadshows encourage direct engagement, providing U.S. investors firsthand exposure to the African ecosystem and making it easier to overcome knowledge and cultural gaps.

Note: These strategies are by no means novel. All of them have been attempted in various forms and have yielded positive results. They should continue to be a part of any concerted effort to increase U.S. capital allocation into Africa, especially as the African venture landscape continues to mature.

5. Africa as a Strategic Defense Priority

While traditional VC avenues should continue to be explored, a contrarian approach positions Africa as a strategic priority regarding U.S. defense and geopolitical interests. This approach advocates for capital typically earmarked for defense spending to be redirected into Africa-focused venture capital, private equity funds, and money markets. 

5.1. Geopolitical Context

Africa’s strategic importance is growing due to its vast natural resources, burgeoning population, and critical geographic location. Over the next 20 to 50 years, the continent is expected to play an increasingly significant role in global supply chains and geopolitical power struggles. Africa holds 30% of the world’s known mineral reserves, including critical resources like cobalt, platinum, and lithium—vital components in advanced technologies, renewable energy, and defense systems​ (World Economic Forum, Forbes Africa).

In addition to its resource wealth, Africa’s population is expected to double by 2050, making it home to nearly 25% of the global population. This demographic growth, combined with rapid urbanization and technological adoption, makes Africa one of the world’s most dynamic and rapidly evolving regions. Its geographic position, particularly along vital maritime routes, further enhances its importance in global trade and defense strategies.

5.2. Soft Colonialism in China

China’s growing influence in Africa, often referred to as “soft colonialism,” is one of the most pressing geopolitical challenges for the U.S. in the coming decades. China’s involvement in Africa is multifaceted, ranging from infrastructure investments and resource extraction to political influence and debt diplomacy. Through its Belt and Road Initiative (BRI), China has financed large-scale infrastructure projects such as ports, railways, and highways across Africa, with an estimated $153 billion in loans to African countries between 2000 and 2019 ​(World Economic Forum).

However, these investments come with significant strings attached. Many African countries have found themselves in a cycle of debt dependency, unable to repay loans on projects financed by Chinese state-owned enterprises. For example, Zambia and Kenya have faced difficulties servicing their debts, leading to fears that China could seize strategic assets such as ports and airports as collateral​ (Forbes Africa, CIO Africa). Concerns are not unfounded: China effectively took control of the Hambantota Port in Sri Lanka after the country defaulted on loans, is a cautionary example of how Chinese influence could escalate into direct ownership of critical infrastructure.

China’s dominance extends beyond economics to the political realm. By funding infrastructure projects and offering favorable trade deals, China has gained significant leverage over African governments, influencing policy decisions in its favor. As China solidifies its control over strategic sectors such as telecommunications, energy, and transportation, the risk for the U.S. is economic competition and a diminishing sphere of political and military influence in one of the world’s most strategically important regions.

5.3. Expanded Economic and Political Control 

China’s “debt-trap diplomacy” strategy allows it to leverage financial assistance to gain long-term control of critical infrastructure. Beyond financial control, Chinese companies, backed by their government, have secured contracts for building key telecommunications networks, such as 5G infrastructure, on the continent​ (World Economic Forum). This growing control over physical and digital infrastructure raises national security concerns for the U.S., as it cedes influence to China.

This dynamic—where China’s economic expansion blurs the lines between commercial and strategic interests—represents a form of modern-day colonialism. By embedding itself in Africa’s economic fabric, China is setting the stage for long-term influence that could directly challenge U.S. strategic objectives in the region.

Given the continent’s resource importance, population growth, and geopolitical influence, the U.S. should strategically pivot to Africa. This pivot would counter China’s expanding soft colonialism and open up economic opportunities through investments in Africa’s burgeoning tech and energy sectors.

6. Proposing a Defense Spending Reallocation

The U.S. should prioritize Africa as part of its broader defense strategy to counter China’s growing dominance. Capital allocated for defense spending could be redirected toward:

• Venture Capital and Private Equity: By investing in fund managers and private equity firms focused on Africa, the U.S. could help develop a portfolio of startups and mature companies. This would promote economic growth, stabilize key industries, and enhance U.S. influence on the continent.

• Debt and Liquidity Markets: Deploying capital into African debt and liquidity markets could help create a more resilient financial ecosystem, benefiting both African economies and U.S. investors.

• Data and Energy Infrastructure: Africa’s growing need for localized data centers presents a prime investment opportunity, particularly as the continent becomes increasingly digitalized. The demand for data centers stems from a surge in mobile phone usage, internet access, and technological advancements, creating an urgent need for local server infrastructure to efficiently handle data processing and storage. Much of Africa’s data is stored in offshore data centers, leading to latency issues, increased costs, and data sovereignty concerns ​(AVCA, CIO Africa). Africa’s abundant renewable energy resources—particularly solar, hydro, and wind—make the continent an ideal candidate for establishing data centers that are not only localized but also powered by clean energy. The convergence of these two factors—growing data infrastructure needs and the potential for sustainable energy—creates a unique investment opportunity. By setting up data centers that tap into the continent’s renewable energy potential, the U.S. can meet Africa’s digital needs and align with global clean energy goals​ (Forbes Africa, World Economic Forum).

7. Geopolitical Justification: The Future of Global Competition

As U.S. defense policy increasingly focuses on emerging technologies and their application in geopolitical conflicts, there is a growing recognition that technological leadership extends beyond national borders. While advanced technologies have already been deployed in Ukraine and Israel, the U.S. should not overlook Africa, where both economic and geopolitical stakes are high.

By positioning Africa as a strategic priority for defense investment, the U.S. can strengthen its influence over a critical region, balancing China’s dominance while reaping economic returns from successful VC, private equity transactions, and money markets. 

8. Proposed Solution: Capital Deployment Strategy

• Fund of Funds Structure: Congress and other U.S. stakeholders could create a fund of funds to allocate capital to African venture capital and private equity firms. This structure would allow for a diversified approach and minimize direct operational involvement from U.S. policymakers.

• Incentives for Private Investment: To attract more private capital, tax credits and other incentives could be offered to hedge funds, family offices, and institutional investors that participate in the fund of funds. These investments can offer both financial returns and geopolitical security by aligning defense and economic interests.

• Strategic Partnerships: Collaboration with financial institutions and African governments to build data centers and technology hubs could provide long-term stability and growth opportunities.

9. Playbooks and Action Items

There is precedent for this strategy in other sectors. The successful defense sector playbook could be replicated here, with the following steps:

1. Lobbying: Engage a lobbyist to connect with key decision-makers in Congress, particularly those involved in defense appropriations and foreign aid programs. 

2. Identifying Key Stakeholders: Target congress members in districts that lack major finance sector activity, similar to how the defense industry engages districts without major defense contractors.

3. Political Action: Fund lobbying efforts and contribute to political action committees (PACs) that support congress members sympathetic to this strategy.

10. Targeting the Congressional Agriculture and Black Caucuses

When considering lobbying efforts to direct defense-related capital toward African investments, particularly through venture capital and private equity, two Congressional groups could be of particular interest: the Agriculture Committees and the Congressional Black Caucus (CBC). Both groups could play critical roles in advocating for policies that align with U.S. defense and economic strategies in Africa.

10.1. Agriculture Caucus: Aligning with Food Security and Resource Development

The House and Senate Agriculture Committees could be key allies in lobbying efforts due to agriculture’s central role in African economies. Africa holds 60% of the world’s arable land, yet its agricultural sector remains underdeveloped. Investment in agritech and sustainable farming practices is critical for the continent’s food security and economic stability​ (CIO Africa).

10.2. Why the Agriculture Caucus?

• Food Security as a Defense Strategy: The U.S. Department of Defense has long recognized that food security is a matter of national security, particularly in volatile regions. Investment in Africa’s agricultural technology sector would bolster the continent’s self-reliance and stabilize fragile states, reducing conflict and creating a more secure geopolitical landscape. Lobbying the Agriculture Caucus to support funding for agritech investments in Africa aligns with the U.S. defense strategy of promoting stability through economic development​ (CIO Africa, World Economic Forum).

• Resource Control: Africa is also a key supplier of agricultural raw materials like cocoa, coffee, and cotton. Controlling these resources could be considered a strategic economic interest for the U.S., especially in light of China’s growing influence in Africa’s agricultural sector. Supporting African agricultural development could ensure the U.S. retains access to these critical resources, vital for global supply chains and economic security​ (CIO Africa).

10.3. Lobbying Strategy:

• Highlight the Dual Benefit: Engaging with members of the Agriculture Caucus can be particularly effective if the economic and defense-related benefits of investing in Africa’s agricultural sector are highlighted. This dual narrative—economic returns and geopolitical security—can help sway members to support initiatives promoting U.S. investment in Africa.

10.4. Congressional Black Caucus (CBC): Championing African Economic Empowerment

The Congressional Black Caucus (CBC) has historically advocated for U.S. policies promoting economic growth and development in Africa, emphasizing partnerships benefiting African nations and Black Americans. The CBC could play a pivotal role in lobbying efforts to direct defense capital toward African venture capital and private equity, especially given its commitment to fostering stronger U.S.-Africa ties​ (World Economic Forum).

10.5. Why the Congressional Black Caucus?

• Advocacy for African Economic Development: The CBC has consistently supported initiatives to reduce poverty, enhance economic opportunities, and build sustainable infrastructure in African nations. Lobbying the CBC to support a defense-related reallocation of capital into Africa fits within their long-standing mission to strengthen U.S.-Africa economic relations. It can be framed as an empowerment initiative ​(CIO Africa, World Economic Forum).
• Supporting Black-Owned Enterprises: The CBC also promotes investment in Black-owned businesses, and Black entrepreneurs lead many African startups. By advocating for increased venture capital funding in Africa, the CBC can help create pathways for Black entrepreneurs on both sides of the Atlantic to thrive​ (World Economic Forum).

10.6. Lobbying Strategy:

• Emphasize the Historical Ties: When approaching the CBC, it’s important to emphasize the historical and cultural ties between African nations and the African American community. This strategy creates a personal and political connection that can bolster the case for increased U.S. investment in Africa.

• Economic Empowerment and Job Creation: Highlighting the job creation potential in Africa and the U.S. through African-American partnerships can further strengthen the CBC’s support. Venture capital investment in Africa can also create new trade and business opportunities for U.S.-based Black entrepreneurs ​(CIO Africa, World Economic Forum).

11. Economic and Geopolitical Upside

Africa presents a dual opportunity for the U.S.: a significant economic return from venture capital investment and a strategic geopolitical advantage in the face of growing global competition. By positioning Africa as a defense-related spending and investment focus, the U.S. can counterbalance China’s increasing influence while benefiting from the continent’s economic growth.

11.1. Economic Upside

Africa’s economic potential is immense. By 2050, Africa’s GDP is expected to reach $29 trillion, driven by its vast natural resources, growing population, and increasing digitalization​ (AVCA). The continent is already home to some of the fastest-growing economies in the world, including Nigeria, Kenya, and Egypt, and its tech ecosystem is booming. In 2022, Africa raised $5.2 billion in venture capital across 786 deals, a relatively small amount compared to global markets but indicative of its rapid growth trajectory ​(World Economic Forum). Investing in early-stage companies now allows U.S. investors to gain early access to what is expected to be one of the world’s fastest-growing markets.

The U.S. can capture economic returns through a variety of mechanisms:

• Venture Capital Exits: African startups, particularly in sectors like fintech and e-commerce, have produced several high-profile exits, including Flutterwave and Jumia. These liquidity events offer significant return on investment (ROI) potential.

• Private Equity Transactions: Investments in mature companies operating in essential sectors like telecommunications, agriculture, and energy are expected to yield strong returns. African private equity firms have shown an average annual return of 15-20%, outperforming other emerging markets​ (CIO Africa, Forbes Africa).

• Liquidity and Debt Markets: Deploying capital into Africa’s debt and liquidity markets can provide more immediate returns, especially as Africa’s financial services infrastructure continues to expand.

11.2. Geopolitical Upside

Beyond economic returns, investing in Africa offers the U.S. a strategic geopolitical advantage, particularly in light of China’s increasing influence on the continent. China’s investments in Africa, especially through its Belt and Road Initiative (BRI), have reached $153 billion since 2000, predominantly in infrastructure projects like railways, ports, and highways​ (World Economic Forum). This infrastructure expansion has allowed China to wield considerable economic and political influence over many African nations, giving it control over critical sectors and resources.

If left unchecked, China’s growing dominance could threaten U.S. strategic interests in the region. Africa’s vast reserves of critical minerals, such as cobalt and lithium (vital for defense technologies and renewable energy solutions), are increasingly controlled by Chinese companies​ (World Economic Forum, CIO Africa). By investing in African startups, infrastructure, and clean energy projects, the U.S. can counter China’s influence, ensuring it retains access to these crucial resources and strengthens alliances with African nations.

Investment in Africa offers a unique combination of economic returns and geopolitical benefits. By positioning Africa as a strategic focus, the U.S. can outpace China’s “soft colonialism” while tapping into the continent’s future as a global economic powerhouse. The time to act is before the gap between U.S. and Chinese influence becomes too wide to bridge.

12. Next Steps:

• Socialize this proposal with African fund managers and prospective LPs.
• Identify a roster of fund managers poised to receive allocation.
• Begin developing relationships with congressional stakeholders and lobbyists.
• Explore playbooks that have worked in other sectors, notably defense.

13. Fund of Funds as Proposed Investment Vehicle

13.1. Constructing a Fund-of-Funds Structure for African Investment

The creation of a fund-of-funds (FoF) structure for African investment serves as a powerful tool to address the region’s capital shortfalls while consolidating influence and engagement from the U.S. and other global players. The goal of this structure is to direct capital to promising African fund managers while simultaneously cultivating an ecosystem that attracts more U.S.-based investors, governmental bodies, and institutional capital. The following outlines the potential construction of the fund. 

13.2. Fund Structure and Capital Allocation

A fund-of-funds structure involves a parent fund that invests in multiple underlying funds, which are managed by local or regional African venture capitalists, private equity managers, and special purpose vehicles (SPVs), and debt/credit facilities. Each underlying fund focuses on a particular vertical, such as fintech, agritech, energy, or telecommunications, depending on the needs of the African ecosystem. This diversified approach reduces risk while enabling deep sectoral expertise.

Key components:

• Anchor Capital: Attract anchor capital from U.S. government entities such as USAID or the Department of Defense (DoD). These institutions can provide catalytic funding that de-risks early investments for private sector LPs.
• Leverage Institutional Investors: Invite hedge funds, university endowments, and other LPs into the fund by highlighting the dual opportunity for financial returns and strategic geopolitical influence.
• SPV Integration: For specific high-impact deals, such as large infrastructure projects or strategic tech ventures, the FoF can create SPVs. These vehicles would allow investors to engage in individual deals without being committed to the entire portfolio, which provides flexibility and appeals to those hesitant about long-term exposure.

13.3. Recruiting Top Talent for Fund Management

To ensure the fund’s success, it’s critical to recruit and retain top-tier talent to manage the various underlying funds. Recruitment should focus on individuals with deep market knowledge, on-the-ground experience, and a successful track record in Africa.

• Attract Diaspora Talent: Tap into the African diaspora, particularly in the U.S. and Europe, who have strong ties to their home countries and understand both global and local markets.
• Create a Virtuous Cycle: Much like the model used by leading US-based FoFs such as Nimble Partners, recruit fund managers who not only generate strong returns but also become a source of high-quality deal flow. These managers, upon achieving success with their portfolio companies, should be encouraged to bring additional deals back to the FoF, thereby creating a virtuous cycle of continuous deal flow and investment opportunities.

13.4. Governance and Transparency

One of the largest obstacles in African investment is the perception of poor governance and a lack of transparency. This has historically led to mistrust and a hesitation from institutional investors.

• High Governance Standards: Implement rigorous governance protocols across all funds in the portfolio. This includes independent audits, regular reporting, and a compliance framework that adheres to international standards, providing peace of mind to U.S. and European investors.
• Adopt Best Practices: Learn from successful funds operating globally, applying best practices in compliance and risk management to build trust with institutional LPs.

13.5. Network of Advisors and Mentors

To support both fund managers and portfolio companies, the fund should establish a robust network of advisors and mentors, each aligned with the fund’s goals.

• Aligned Incentives: Advisors who contribute to the success of portfolio companies should be rewarded with a share of the carry from successful investments. This creates alignment between the advisors and the portfolio companies, motivating them to provide valuable insights and connections.
• Mentorship Network: Set up a mentorship network of experienced African and international entrepreneurs and operators who can guide fund managers and startup founders in overcoming key operational challenges. These mentors could come from the African diaspora or global corporates with a vested interest in the continent.

13.6. Leveraging Government and Institutional Anchors

The FoF structure can be anchored with funding from U.S. government bodies like USAID, DoD, and development finance institutions (DFIs), which view African stability and growth as key to geopolitical stability.

• Government Anchors: By securing anchor investments from these bodies, the fund reduces its risk profile, making it more attractive to private sector investors like hedge funds and endowments.
• Broaden Institutional Participation: Use the initial capital from government agencies to attract private LPs, who may be swayed by the strategic value of co-investing with influential government entities. This collaboration opens doors to more institutional investors who would otherwise be hesitant to enter African markets alone.

13.7. Fostering U.S. and African Synergy

The fund’s value proposition includes directing influence in the U.S. and consolidating efforts to mobilize capital for Africa.

• Consolidating U.S. Influence: Rather than taking a fragmented, piecemeal approach, the FoF serves as a central channel to direct U.S. institutional and government capital into Africa. This concentrated effort could influence U.S. policies, allowing African startups and fund managers to access more capital and resources.
• Strategic Influence in Washington, D.C.: Use the fund to consolidate influence within Washington, D.C., through advocacy for African markets and targeted lobbying. The goal is to create long-term political and financial commitments from both private and public sectors in the U.S.

14. Strategic Alignment with Media Publications

A critical and often underutilized lever for accelerating both funding and business momentum in emerging markets is the strategic alignment of venture capital (VC) funds with media outlets. In Africa, this can be a game-changing tactic for a fund-of-funds (FoF) model, following the success seen in the U.S. by firms like Andreessen Horowitz (a16z), which leveraged its media strategy to amplify the reach, credibility, and visibility of both the fund and its portfolio companies.

By aligning with influential African media publications and platforms, the fund can not only shape narratives around African innovation but also build a stronger ecosystem that encourages more capital inflows and enhances business success. Here’s how the FoF could implement a similar strategy:

14.1. Media as a Catalyst for Ecosystem Growth

In Africa, media has the potential to act as a powerful catalyst for driving entrepreneurial growth and investment. By forming partnerships with leading media outlets—whether they are traditional newspapers, online publications, or new media platforms such as podcasts and YouTube channels—the FoF can actively shape the narrative around Africa’s startup ecosystem.

• Storytelling for African Innovation: Establish a media presence that regularly highlights success stories from the portfolio companies under the FoF umbrella. Just as a16z creates its own content ecosystem to control the narrative about tech innovation in the U.S., the FoF can work with media to broadcast the stories of African startups that have achieved product-market fit, raised significant rounds of capital, or made important social and economic contributions.
• Regular Reports and Thought Leadership: Publish market reports, white papers, and opinion pieces in collaboration with media outlets. These reports can feature trends in African venture capital, sectoral growth, and in-depth analyses of opportunities. By making the FoF a go-to resource for insights on African tech, it becomes easier to attract LPs, foster thought leadership, and boost confidence among investors.

14.2. Building Media Partnerships

To create a robust media strategy, the FoF must form partnerships with credible African media organizations that have regional influence and reach.

• Collaborating with Regional Media: Key partnerships with regional publications in cities like Lagos, Nairobi, and Cape Town can provide consistent coverage of the fund’s activities and portfolio companies.
• Amplifying via New Media: Partner with leading African podcast networks, YouTube influencers, and digital platforms to engage a younger, tech-savvy audience. This audience not only includes startup founders but also potential consumers and investors who can influence the ecosystem’s growth.

14.3. Media as an Investor and Partner

The FoF could go beyond simply collaborating with media outlets by inviting select media companies as investors in the fund itself. This way, media houses have skin in the game and are incentivized to promote the success of the portfolio companies.

• Equity Stakes in Media: By allowing media organizations to invest directly in the fund, they gain a vested interest in the success of the African startup ecosystem. In return, they will be more inclined to produce high-quality content and in-depth analysis of startups and the larger ecosystem.
• SPVs for Media Projects: Specific media-driven SPVs could be created to finance projects that align media coverage with the promotion of innovation, technology, and African entrepreneurship. These SPVs could invest in media tech platforms, journalism hubs, and narrative-driven startups that specialize in telling African stories in innovative ways.

14.4. Creating Media Assets Within the Fund

Another option for the FoF is to develop its own media assets, mirroring what a16z has done with its podcast and publishing arm. This content production unit would focus solely on promoting the African startup ecosystem and the FoF’s portfolio companies.

• Content Hub: Create an internal media arm responsible for producing podcasts, articles, and videos that feature interviews with African founders, success stories, and in-depth discussions about market trends. These media assets could serve as a global resource for both African and international investors looking for trusted insights into the ecosystem.
• Owned Channels: Use social media platforms to build a direct relationship with followers, investors, and ecosystem players, offering regular updates, founder stories, and ecosystem development initiatives. This enhances both visibility and influence.

14.5. Influencing Public Perception to Attract Funding

Strategic alignment with media also plays a key role in shaping public and investor perceptions. In Africa, there is still a degree of skepticism and risk aversion among many global investors, which can be mitigated by strong media narratives.

• Normalizing Investment in Africa: By regularly sharing positive stories of successful African startups and impactful investments, the FoF can normalize the idea that Africa is a viable and profitable region for investment. This shift in narrative can serve to counterbalance the traditionally negative perceptions associated with political instability and economic risks.
• Investor Education: Media platforms can also serve to educate potential investors about the unique opportunities in Africa. Hosting webinars, podcasts, and interviews with key figures in the investment community can reduce the knowledge gap that deters many international investors from entering the African market.

14.6. Driving Momentum and FOMO

In venture capital, creating a sense of urgency or “fear of missing out” (FOMO) is often key to accelerating funding rounds and increasing valuations. A strategic media partnership helps drive momentum for both portfolio companies and the fund itself.

• Timed Announcements: Coordinate press releases, feature stories, and announcements with major funding rounds or key milestones. Ensuring widespread media coverage at critical moments can boost the profile of portfolio companies and help create buzz in the investment community, driving interest from new LPs.
• Exclusive Media Access: Provide certain media outlets with exclusive access to interviews, early announcements, and behind-the-scenes insights into the fund and its operations. This helps build a sense of exclusivity and excitement around the fund’s activities.