Recursive Capital, a venture fund founded by Nigerian programmer Abubakar Nur Khalil, has officially closed its inaugural fund, raising $510,000 to support Bitcoin-focused startups. The fund, dubbed Recursive Fund I, aims to foster innovation across Bitcoin infrastructure, including mining, exchanges, wallets, and advanced technologies leveraging the Lightning Network and Fedimint protocols.

According to Recursive Capital’s strategy, the fund targets early-stage companies, providing equity investments ranging from $50,000 to $100,000 per portfolio company. The firm maintains a strict equity-only investment approach, refraining from alternative financing structures such as tokenized securities or accepting altcoins in exchange for investment.

Portfolio Highlights

Since its launch, Recursive Fund I has backed several prominent startups advancing Bitcoin’s utility and adoption:

• Bitnob: A platform offering Bitcoin-native financial services and enabling cross-border payments.
• Fedi: Developer of a “Community Superapp” that facilitates collaborative Bitcoin custody.
• Synota: A company streamlining utility bill payments over the Lightning Network.

These investments reflect the fund’s focus on projects with practical, real-world applications that align with the evolving needs of the African market and beyond.

Prominent Bitcoin proponents, including Jack Dorsey and Jeff Booth, have expressed strong support for Nur Khalil’s mission.

Dorsey, a vocal advocate for Bitcoin’s role in Africa, has invested in various Bitcoin-related ventures on the continent and is scheduled to speak at the upcoming African Bitcoin Conference in Kenya. His support underscores the growing global interest in Africa’s Bitcoin ecosystem.

Jeff Booth, a noted entrepreneur and Bitcoin advocate, praised Nur Khalil’s leadership, highlighting Bitcoin’s transformative potential for the African continent. “Abubakar is an incredible leader in the Bitcoin community, and Bitcoin has the potential to free the people of Africa from centuries of living in exploitation,” Booth said via email.

Looking ahead, Recursive Capital plans to launch Recursive Labs in 2024. The initiative will provide mentorship, strategic guidance, and additional resources to the founders of portfolio companies, solidifying the firm’s role as a growth enabler.

The firm is also expanding its focus on Bitcoin mining, an area increasingly attractive in Africa due to abundant cheap and renewable energy sources. Nur Khalil sees Bitcoin mining as a driver for green energy development and aims to capitalize on the continent’s unique advantages in this sector.

Nur Khalil envisions Recursive Capital as a pivotal player in building a thriving Bitcoin industry in Africa. “I want Recursive and the companies in its portfolio to be a source of signal on the continent for investors seeking to benefit from exposure to a once-in-a-generation asset — Bitcoin,” he said.

By championing high-quality, impactful startups, Recursive Capital aspires to position Africa as a global hub for Bitcoin innovation, contributing to the continent’s economic transformation and technological leadership.