OpenseedVCa new operator-led fund that seeks to be the first investors in experienced operators starting their technology companies across Africa and Europe has officially launched, announcing the first close of its $10 million angel seed-stage fund.
Details
The fund, backed by LPs such as founders, operators and HNIs across Africa, Europe and the US, will offer original checks up to $150,000; along with access to its strong network of over 50+ experienced experts to support operators just starting their technology companies from scratch to one.
OpenseedVC will also primarily invest in The future of commerce, e.g., B2B software, AI, and Fintech, Future of Health & Work with the aim of aligning the portfolio’s intrinsic impact with the UN’s Sustainable Development Goals.
About OpenseedVC
OpenseedVC is the brainchild of General Partner Maria Rotilu, whose vision is to invest early in the growing number of experienced operators who aspire to start their own technology companies.
Maria believes that the founders of OpenseedVC from the early stages get the necessary capital and conviction, but also the added benefit of a community of experienced operators for support from start to launch.
The fund will primarily invest in founders in Africa and Europe and aims to invest in at least sixty start-ups over the next five years and operates an open application process so founders can apply without an introduction.
A seasoned operator turned investor herself, Rotilu has gained extensive market expertise in both Africa and Europe by scaling multinational technology start-ups such as Uber and Branch to millions of users, as Country Manager and General Manager respectively, as well as investing in global companies as its Principal & Fund Manager Octopus Ventures First check fund. Maria was also Managing Director at the University of Oxford’s Oxford Seed Fund, one of Europe’s leading unicorn growers.
The fund made its first two investments in Future of Commerce and Health, the first in an AI-enabled supplier dispute resolution software in the UK and the second in a ground-breaking speech-to-text model for underserved accents, starting in Africa.
What they say
Speaking about the launch of the OpenseedVC Fund, Maria Rotilou says, “As an operator and investor, I have met incredibly talented and experienced operators and the challenges they face as they try to launch their startups. Operators have the benefit of domain expertise and unique knowledge of big problems that can be tackled with innovative technology.
Those who are visionary combined with the ability to execute, scale, build teams and have the drive to solve tough problems — these skills, especially in the current market, are highly relevant to building tech startups that solve real problems and create scalable value for the global economy and our investors. The experience that seasoned operators bring in building businesses, combined with the dynamism and hustle that founders possess, is the focus of OpenseedVC.”
“The current challenging fundraising climate is particularly tough on early-stage founders, but we believe that incredible companies are born in the toughest macroeconomic climates. We want to be the first to believe in these experienced operators to give them a great start, with capital and an extensive operator network supporting their technology companies from inception to launch.”
Maria ZubeldiaDirector of the Center for Entrepreneurship, Saïd Business School, University of Oxford, added, “We are proud to have played a part in Maria’s journey in her time as CEO of the Entrepreneurship Centre’s Oxford Seed Fund, which provides Saïd Business School MBA students with the opportunity to gain investment experience. Our goal is to foster a supportive ecosystem for exciting early-stage startups to grow and scale, and it’s great to see Maria furthering that ethos with the launch of OpenseedVC. I look forward to watching the fund develop.”
By The Numbers
Global ecosystem data bears this out as many as 9 out of 10 startups fail, with the founders’ lack of necessary expertise and business acumen identified as a major contributing factor. This in part led to a 45% failure rate for VC investments.
Because this matters
OpenseedVC operates in a sweet spot where startups with strong potential for success, based in part on the founder’s relative ability to execute, receive support.
This approach ensures that funds are directed to businesses with a greater likelihood of effectively solving real, scalable and impactful problems. The fund is open to:
- Domain experts / seasoned operators in high-growth technology companies, including first-time founders
- Second-time founders who have created and exited a previous startup
All applications to OpenseedVC will go through the same evaluation process and investments will be made on a rolling basis throughout the year.
Zoom out
According to Global Startup Ecosystem Report from Startup Genome, the number of tech startups worldwide is steadily increasing year-on-year, with the report projecting 3.5 million startups in 2023.
The data shows that only in 2020 they existed over 300,000 new technology startups founded globally, highlighting the development of a critical mass of strong talent operators emerging through the tech startup ecosystem.
With global early stage equity funding experiencing a significant contraction of up to – 54% p.a. (-33% p.a. in Africa), the OpenseedVC fund offers a much needed opportunity for operator talent to access the support they need.
Digging deeper
In addition, with just 8% of VC firms in Europe and Africa are run by ex-operators, compared to nearly half of US VCs, the operator-led OpenseedVC fund represents a positive development. Founders have the opportunity to work with investors who have a deep understanding of product and company development and can empathize with them throughout their journey. The unique fund focusing on Africa and Europe also enables the exploration of synergies between Afro-European VC ecosystems, similar to what is more prevalent in the US-Africa VC space.
Applications are currently open and interested startups can learn more and apply by visiting OpenseedVC Website.
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