Launch Africa Ventures, a leading Pan-African venture capital firm, has introduced the Launch Africa Mezzanine Impact Fund, a pioneering initiative designed to accelerate the growth of technology companies in Africa and the Gulf Cooperation Council (GCC) region. The fund is tailored to address a critical funding gap in the African entrepreneurial ecosystem, providing bespoke growth capital solutions that enable African innovators to scale their businesses while retaining ownership and control.
The newly launched fund aims to provide capital to technology companies at the growth stage, unlocking opportunities for mergers and acquisitions (M&A), management buyouts (MBOs), and broader market expansion strategies. The goal is to empower African founders to drive job creation, economic growth, and the development of innovative products that improve the quality of life across the continent. This initiative also aligns with the broader goals of sustainable development and gender equity.
A key development in the creation of the Launch Africa Mezzanine Impact Fund is the appointment of Anthony Moore as its Executive Chairman. Moore brings a wealth of experience from a distinguished career that includes leadership roles as Managing Director and Head of Investment Banking at Goldman Sachs International, as well as Chairmanships of several companies across the energy and finance sectors. His extensive global expertise, particularly in the UK and Asia, positions him as an ideal candidate to lead the fund’s mission.
Moore’s leadership will be complemented by a newly assembled debt solutions team, focusing on funding high-impact, high-growth technology companies. The fund’s primary geographical focus will be the Africa-GCC corridor, leveraging Moore’s broad international network and deep understanding of emerging markets.
African growth-stage companies continue to face a significant funding gap, estimated to exceed $400 billion, according to the African Development Bank’s 2024 Economic Outlook. While early-stage funding has gained traction in recent years, the absence of sufficient growth capital often hampers the ability of tech firms to scale to their full potential. The Launch Africa Mezzanine Impact Fund seeks to bridge this gap by providing financial solutions that support sustainable expansion while mitigating the need for founders to dilute their ownership through traditional equity raises.
Mezzanine financing offers a flexible alternative, blending debt and equity features to cater to the specific needs of growing businesses. This model is particularly attractive to founders who wish to maintain control of their companies while accessing the necessary capital to expand. The Fund’s investment thesis will focus on companies that demonstrate strong environmental, social, and governance (ESG) principles and are committed to delivering tangible, positive social impact.
Launch Africa Ventures is positioning the Mezzanine Impact Fund as more than just a financial backer. The Fund will take an active role in working with its portfolio companies to improve governance, optimize operational efficiency, and diversify product offerings. By offering strategic support, the fund aims to drive sustainable growth, creating a virtuous cycle that benefits both investors and the communities served by these businesses.
The Fund’s emphasis on ESG-aligned investments aligns with broader global trends and increasing demand from investors who prioritize social impact alongside financial returns. Companies that can demonstrate measurable progress in areas such as gender equality, job creation, and environmental sustainability are expected to be the primary beneficiaries of the fund’s backing.
Over the past three years, Launch Africa Ventures has emerged as a dominant player in Africa’s venture capital ecosystem, investing in more than 150 technology companies across 23 African countries. To date, the firm has deployed over $55 million in direct and co-investments, working alongside a global network of investors to fuel the continent’s digital transformation.
With the Launch Africa Mezzanine Impact Fund, the firm is set to build on its established track record by supporting technology-driven businesses that are poised to scale but require growth capital to do so. The fund’s focus on the Africa-GCC corridor reflects the increasing importance of cross-regional collaboration and market integration, particularly as African businesses seek to expand beyond domestic borders into more diversified markets.