OpenseedVC, a venture capital firm launched in 2024, has achieved the initial close of its $10 million fund for early-stage startups in Africa and Europe.
This $10 million fund marks OpenseedVC’s inaugural fund and will support founders possessing domain expertise, underlining the growing significance of founder experience in Africa’s tech landscape. The VC firm anticipates a second close by May next year.
Maria Rotilu, OpenseedVC’s general partner, explained their investment approach to TechCabal, emphasizing three key questions: How big? Why this team—what’s their unique advantage? And why now?
Based in London, the VC firm plans to invest up to $150,000 in startups specializing in B2B software, artificial intelligence, fintech, digital health, and the future of work.
It has already funded two undisclosed artificial intelligence startups in Nigeria and the UK.
A lack of domain expertise among founders has emerged as a primary cause of startup failures. OpenseedVC gives priority to founders who demonstrate a clear grasp of their target market and possess the skills to navigate its challenges and opportunities.
Maria Rotilu launched OpenseedVC in 2024, aiming to support startups with significant potential for success, partly driven by the founder’s relevant execution ability.
According to the VC firm, this strategy ensures that funds are channeled towards businesses with a higher probability of effectively addressing real, scalable, and impactful challenges.
The establishment of OpenseedVC offers a fresh funding avenue for African startups. In 2023, funding for African startups decreased by 33% compared to the previous year, with a total of approximately $3.2 billion raised by African startups.
Addressing the challenging fundraising environment, Maria Rotilu stated, “We believe exceptional companies emerge even in the toughest economic climates, especially for early-stage founders.
We aim to be the first supporters of these experienced operators, providing them with substantial capital and an extensive network of operators to propel their technology companies from inception to launch.”
OpenseedVC boasts a network of over 50 experienced operators, possessing deep expertise across its investment sectors, who actively support the founders alongside the team.
Currently investing across Europe and sub-Saharan Africa, the VC firm aims to achieve a balanced portfolio across both regions in the future.