AAIC Investment Pte. Ltd. (AAIC Investment), a Japanese investment firm based in Singapore, is pleased to announce the First Closing of Africa Innovation & Healthcare Fund VCC –AHF2, its second fund focused on investing in African start-ups, in March 2022. AHF 2 will begin investing and will continue to take subscriptions until it reaches its goal of USD 150 million.
Asahi Intecc Co., Ltd, Eisai Inc., Ohara Pharmaceuticals (*), and other prominent Japanese trading companies were among the first investors in the AHF2.
According to research from Partech, 2021 saw African start-ups raising a total of USD 5.24 billion in funding, catching up rapidly with the amount raised by start-ups in Japan. AHF2 invests primarily in healthcare, a key SDG Goal (SDG 3) and a sector that is undergoing rapid advancement in the fields of telemedicine and Artificial Intelligence-led diagnosis, driven by the outbreak of Coronavirus.
Other areas of investments include industries such as Fintech, of which products and services offered by these companies play a crucial role in further accelerating the growth of the Healthcare industry.
AAIC Investment launched its inaugural Africa-focused fund, the Africa Healthcare Fund (AHF1), in 2017. The fund raised a total of USD 47 million and has invested in and supported the growth of 30 start-ups to date. 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