Sherpa Ventures launches $1m debut fund for African tech startups

Venture firm Sherpa Ventures announced the launch of its US$1 million debut fund for pre-seed tech startups in Africa.

Sherpa Ventures co-founder Aaron Fu / Photo credit: Aaron Fu

Based between Singapore, Kenya, and the US, Sherpa Ventures works with a community of investors to help founders strengthen and scale their startups. It does this by injecting capital, sharing local experiences, helping form partnerships, and aiding in market entry, among others.

Its new US$1 million investment vehicle called “Basecamp Fund” aims to invest US$25,000 to US$50,000 in startups that usually raise less than US$500,000. Through the fund, Sherpa Ventures also looks to work with startups over six to nine months before deciding to follow on with more funding.

“More than a venture fund – we are a supportive and collaborative global community […] of capital, expertise, and experience who has built and operated some of the strongest startups on the continent, Asia, and across the world,” said Sherpa Ventures co-founder Aaron Fu.

In addition to Sherpa Ventures, Fu serves as the head of growth of BFA Global’s fintech-centered Catalyst Fund. He leads Sherpa Ventures alongside ex-Uber Africa launcher Alastair Curtis and Nikhil Patel, the former chief operating officer of African on-demand streaming platform Iroko.

The VC firm’s advisory board consists of veterans with experience in business, late-stage investing, and corporate partnerships, including execs from the Singapore Fintech Association, Acuity Ventures, Safaricom, and Twiga.

Sherpa Ventures has made two investments so far, joining the funding rounds of fintech startups OnePipe and Boost.

In addition to expertise and capital, Sherpa Ventures said it aims to accelerate partnerships between startups in Africa and the Asia Pacific. Some examples of such tie-ups include Singapore-based Fomo Pay’s collaboration with Kenya’s Wapi Pay and Red Dot Payment’s partnership with Finserv Africa.