A Kenyan startup in the venture capital sector, Enza Capital, has successfully closed two funding rounds, securing a total of $58 million, TechCrunch reports.
Enza Capital specializes in supporting startups that aim to bridge the gap between offline and online services while digitizing essential industries across Africa.
Back in 2019, the company launched an early-stage fund intending to identify, support and nurture groundbreaking startups at the pre-seed and seed stages.
“This fund remains active and has already invested in various sectors, including fintech, logistics, healthcare, human capital, and climate technology. Enza Capital has since expanded its investment scope to include later-stage companies, particularly those at the Series B level,” the news outlet reported.
In an interview, Mike Mompi, the co-founder and managing partner of Enza Capital, shared that the firm has made investments in 31 different companies, totalling 48 investments across eight African markets, spanning from Kenya and Uganda to Nigeria, Ghana, Ivory Coast, Senegal, Egypt, and South Africa.
Notable investments from Enza Capital’s portfolio include Guidewheel, a Kenyan climate tech startup that expanded to the U.S. and Mexico, as well as Shara, a Kenyan fintech company.
Enza Capital also co-led a Series A investment in Ivorian fintech Djamo and Kenyan insurtech Turaco.
The company is known for its commitment to its portfolio companies, providing support at various stages of development.
“Enza Capital typically invests between $250,000 and $5 million in its portfolio companies, including Autochek, Jumba, Craydel, Cloudline, and SeamlessHR. Additionally, they offer follow-on investment opportunities through Enza Growth Capital, a later-stage investment vehicle capable of allocating up to $20 million per company.”
Enza Capital operates from Nairobi but has an eight-person team spread across multiple cities, including Johannesburg, London and New York.
There are plans to potentially open offices in Lagos and a Francophone African city to better assist portfolio companies in those markets.
In a unique move, Enza Capital is launching a founder partner program, which allows founders and leadership teams of its portfolio companies to become co-owners of the firm. This program aims to strengthen trust and long-term partnerships beyond traditional venture capital structures.
“The company intends to allocate 10% of its carry pool back to the founders, with distribution determined by factors like referrals, initial investments, and follow-on funding.”
While this approach may seem like giving away equity or money, Enza Capital believes it fosters alignment and collaboration with founders, ultimately increasing the likelihood of success for all stakeholders.
It is noted that Mr Mompi and his partner, John Lazar, have experienced the challenges of raising venture capital and scaling a company, which drives their desire to support founders, even in cases where startups may not succeed.
Enza Capital stands out as one of Africa’s largest funds not backed by typical African institutional investors, signalling the increasing mainstream acceptance of venture capital in Africa.
The firm’s limited partners include founding partners, private individuals, family offices, foundations, fund of funds, hedge funds, and venture capital funds, reflecting a diverse and robust investment base.
Enza Capital hopes to see more involvement from African Development Finance Institutions (DFIs) and other traditional African LPs, as well as global endowments, foundations, and pension funds as the African startup ecosystem matures.
