OneBio Venture Studio has raised 100 million rand ($6 million) in a first close of its second fund, as the South Africa-based investor bets on the long-term potential of Africa’s underdeveloped biotechnology sector.
The firm is targeting a final close of 300 million rand by mid-2027, it said, as it looks to expand beyond its home market into countries including Nigeria, Kenya and Egypt.
The fundraising marks a rare push into “deep tech” in Africa, where venture capital has largely concentrated on fintech, e-commerce and logistics due to their faster returns and lower capital intensity.
“OneBio operates at the intersection of biology and technology,” the firm said, positioning itself as both an investor and a builder of startups through a venture studio model.
Unlike traditional venture capital firms, which primarily invest in external startups, OneBio develops companies internally, a strategy similar to that of U.S.-based Flagship Pioneering.
However, replicating such a model in Africa presents challenges, including limited laboratory infrastructure, fragmented regulation and a lack of mature exit markets.
Biotechnology ventures typically require significant upfront investment and long development timelines, with product validation cycles often spanning several years.
OneBio said it has made 16 investments to date, recording eight exits, although six portfolio companies were shut down, reflecting the high failure rates typical of early-stage science ventures.
Some investments have gained traction. LifeQ, a wearable health technology firm, has raised more than $47 million, while CapeBio has generated revenue from diagnostic products.
The firm continues to build its pipeline, including a recent pre-seed investment in Altera Biosciences, which is developing a universal donor cell platform.
OneBio’s fundraising comes as venture studio models gain traction across Africa, with investors seeking more control over company creation in markets where experienced founders are scarce.
Firms such as Delta40 and Adanian Labs are expanding similar approaches across multiple sectors.
Analysts say the key test for OneBio and its peers will be whether these science-led startups can scale internationally and deliver returns in a region where exits remain limited.