Lateral Frontiers VC, a venture capital firm specializing in frontier markets, has successfully raised $28 million towards its $100 million Fund II, Launch Base Africa has learned. This funding will primarily support African startups in the financial services, energy, and business products and services sectors.
Following a month-long tour of Africa, Rob Eloff, managing partner at Lateral Frontiers, highlighted the global aspirations of African entrepreneurs. “We are witnessing a new generation of African entrepreneurs who are not only solving local challenges but also aiming to make a global impact,” Eloff stated.
Since its inception in 2018, Lateral Frontiers has invested in 23 companies across Africa, the Middle East, Latin America, and South Asia. The firm’s impressive track record includes four successful exits, demonstrating its ability to identify and nurture promising ventures.
Eloff acknowledged the unique challenges faced by emerging markets, such as volatile exchange rates and economic fluctuations. However, he emphasized the immense opportunities presented by Africa’s young and rapidly growing talent pool, as well as a maturing capital ecosystem.
Lateral Frontiers’ investment strategy focuses on digital infrastructure for small and medium-sized enterprises (SMEs) and enterprise solutions. The firm is particularly interested in partnering with corporations to drive innovation and unlock value in the informal economy.
The firm has identified Lagos, Nairobi, Cape Town, and Cairo as major tech hubs in Africa, with emerging centers of innovation in Abidjan, Addis Ababa, Dakar, Kampala, Kigali, Kinshasa, and Tunis. Some of the African startups the firm has invested in include: Carry1st; Lipa Later; SeamlessHR; Vibra; Autocheck Africa; Mono; Ejara; AppZone Group.
Lateral Frontiers remains bullish on the future of African innovation. The firm is actively seeking out entrepreneurs who are developing innovative solutions in “digital rails” and “energy access alternatives” to address the continent’s specific challenges and opportunities.