South Africa’s Cactus Capital, the investment arm of Cactus Advisors, has closed its second and third investments in Nigeria’s Flutterwave and South Africa’s E-Factor, months after it invested in Uganda’s mobile payment aggregator, Intel World International in Q1 2016.
According to Zach George, Cactus Advisors’ founder and former top-tier Wall Street investment banker, “As Cactus Advisors, simply investing into high growth, high impact tech-enabled ventures on the continent is not good enough, unless we critically have the right enabling environment on the continent for tech startups to access markets, channel partners and customers.”
Cactus Advisors is therefore working with a consortium of financial services firms, retailers, telecommunication firms, insurance companies and media houses to provide the ideal platform for commercializing proof-of-concept agreements with startups that serves as a perfect risk mitigation shield to investors looking for returns in the African venture capital sector.
One such partner is the Barclays Tech Lab Africa Accelerator which has seen 10 fin-tech and health-tech ventures raise a collective total of $10million along with 7 engagements and Proof of Concept projects with Barclays.
Based in Lagos and San Francisco, Flutterwave is a payments agregator focused on Africa. The firm provides end-to-end payments technology and infrastructure which enables payment service providers, global merchants, licensed money transfer operators and pan-African banks to process payments to and from Africa with one API integration. The Y-Combinator based firm says it has processed over $20 million in transactions to date for clients that include Uber, Paystack, Page Microfinance Bank, and Access Bank.
On the other hand, South Africa’s E-Factor is a digital factoring platform allowing firm to sell their receivable invoices through an auction to investors with the highest bid. E-Factor (formerly called InvoiceXchange) is a graduate of the Barclays Tech Lab Africa Accelerator, which was run and managed by Cactus Advisors.
IWI Africa, also a graduate of the Tech Lab Africa Accelerator Program, is a Uganda-based Fintech company that aggregates payments and commerce into a single platform that enables businesses to transact with their customers on any mobile device.
After 3 years of running the Africa operations of U-Start, a global investment advisory firm, Zach founded Cactus Advisors to pioneer corporate venture capital driven accelerator programs on the African continent in partnership with Philip Kiracofe, an American venture capitalist and partner at Horizen Ventures Africa.