Early stage investing in Nigeria- and Africa-focused technology-anchored startups and companies. Our opportunity antenna and grassroot connections with innovators enable us to see patterns as they develop. We invite you to partner with us as we nurture and build category-king companies in Africa, and in the process advance citizens, communities and nations. At Tekedia Capital, we fund NEXT Africa.
Tekedia Capital offers a specialty investment vehicle (or investment syndicate) which makes it possible for citizens, groups and organizations to co-invest in innovative startups and young companies in Africa. Capital from these investing entities are pooled together and then invested in a specific company or companies. Our focus is on companies with primary operations in Africa even though they may be legally domiciled within or outside Africa.
We invest in mainly technology-anchored companies and are sector-agnostic which means those companies could be operating in any industry, including finance, real estate, education, health, logistics, etc. The opportunity is open for individuals in Africa, Africans in diasporas, global citizens in any place in the world, investment groups and organizations around the world.
Tekedia Capital provides a trusted and secure platform for individuals, institutions and investment groups anywhere in the world to invest at least $10,000 in technology-anchored companies with focus on Africa. The process flow is as follows:
- Step 1: Prospective investor schedules an appointment, asks questions and learns about Tekedia Capital and its processes. We actually want to know you as this journey will be long. Email [email protected] and our team will schedule an appointment.
- Step 2: Investor pays an annual fee for 12-month access in Tekedia Capital deal flow.
- Step 3: Tekedia onboards the member and then shares vetted deal flows with the investor for consideration.
- Step 4: Investor invests or co-invests with others. Each investor is encouraged to invest at least $10,000 and investment cycles are typically quarterly. The timing would be communicated to the investor to enable planning.
Fees & Cost Structure
- Annual Fee of $1,000 or local currency equivalent: Tekedia Capital charges $1,000 annual fee which includes an investor in Tekedia Capital deals for 12 months. This fee is used to run administrative activities, research & development, due diligence on startups, and perform routine paperworks in the business. If after a year, the investor could decide not to renew the annual fee. This could be because the investor has invested in enough startups or for any other reason. Largely, if the investor does not renew, Tekedia Capital will stop sharing deal flows with that investor. Even with that, the investor will remain connected with Tekedia Capital for any previous investment made.
- Carried interest of 20%: Carried Interest is a performance-based compensation system that aligns investors’ interest with Tekedia Capital towards incentivizing the team to outperform by discovering category-king startups, and nurture them to exit. For example, if an investment of $100,000 is exited at $1,000,000, the investor will receive first the principal of $100,000, and then another $720,000, which represents 80% of the profits earned. Tekedia Capital team receives $180,000.
Exit and Investment Duration
We understand that exits via the typical paths like IPOs and acquisitions are still evolving in Africa. More so, most startups rarely pay dividends early in their growth phases. Yet, Tekedia Capital will work where opportunities are available for investors to exit in portfolio startups as they raise higher rounds, once they attain higher valuations. Nonetheless, investors should expect at least 5-10 years before any exit could materialize.
Chairman of Tekedia Capital: Prof Ndubuisi Ekekwe
The Founder of Tekedia Capital is Prof Ndubuisi Ekekwe. He is an entrepreneur and a technology thought-leader in the domain of African technology business. He discusses the ecosystems daily at tekedia.com and social media including LinkedIn. Also, he coordinates one of the largest business schools in Africa, Tekedia Institute. Through these activities, he stays close to the pulse of markets, picking patterns, and investing on them. He will lead his team to source deals, filter them and present them to investors. You can read more about him here.
Prof Ndubuisi Ekekwe invented and patented a robotic system which the United States Government acquired assignee rights. Dr Ekekwe holds two doctoral and four master’s degrees including a PhD in engineering from Johns Hopkins University, USA. He earned an undergraduate degree from FUT Owerri where he graduated as his class best student. While in Analog Devices Corp, he co-designed an accelerometer for the iPhone. A recipient of IGI Global “Book of the Year” award, a TED Fellow, IBM Global Entrepreneur and World Economic Forum Young Global Leader, Prof. Ekekwe has held professorships in Carnegie Mellon University and Babcock University, and served in the United States National Science Foundation Committee.
The South African press called him “a doctor of innovation” for helping organizations on the mechanics of business innovation, strategy, and growth. Since 2009, the Chairman of Fasmicro Group which controls many startups and entities has been writing in the Harvard Business Review. He was recognized by The Guardian as one of 60 Nigerians Making “Nigerian Live Matter” on Nigeria’s 60th Independence Day.
Early stage investment is generally risky even as the reward is also huge. Any investment will involve a high degree of risk of loss of the entire investment amount. Nonetheless, we bring our domain expertise and knowledge of the market to reduce the risks by vetting companies and their leaders. Yet, we expect investors to understand the risk barometer on companies they want to invest towards being in the right comfort zone.
For Startups Looking for Funds
The video below explains at a top-level what we look for in startups to invest. We expect to receive your pitch deck.
For prospective investors & startups looking for funds: [email protected]