P1 Ventures closes $50mn institutional fund

P1 Ventures, an early-stage Pan-African VC firm, recently announced the successful closure of its first $50 million institutional fund, solidifying its commitment to backing innovative founders and validating a 'Made in Africa' thesis. Mika Hajja, the Managing Partner at P1 Ventures, joined CNBC Africa to shed light on the firm's unique investment model and Africa's advantages in tech innovation. P1 Ventures distinguishes itself by focusing on contrarian investments, targeting sectors like hospitality that are often overlooked in Africa. Despite the challenges faced by the hospitality industry globally, P1 Ventures sees untapped potential for high-value outcomes in Africa. Additionally, the firm strategically invests at the seed stage and beyond, demonstrating a willingness to explore new opportunities and support founders at various stages of growth. P1 Ventures also expands its geographic focus beyond conventional markets, aiming to uncover talent in underserved regions like Francophone Africa. One of the standout investments for P1 Ventures is Nuité, a Moroccan company operating in an emerging market outside the 'big four' countries. Hajja emphasizes that talent knows no boundaries and that Africa's diverse pool of entrepreneurs is a key asset for the tech ecosystem. In terms of Africa's advantages for tech firms, Hajja highlights four key factors. Firstly, Africa's youthful population and high mobile adoption rates create a favorable environment for tech innovation and rapid adoption. Secondly, the rise of a new generation of entrepreneurs with global exposure and specialized skills contributes to the continent's tech ecosystem's strength. Thirdly, Africa's flexible regulatory environment and policymakers' support for innovation play a crucial role in fostering tech growth. Lastly, the significant increase in capital raised for African tech startups underscores the growing interest and potential for tech investment on the continent. While global funding into Africa experienced a slight decline in recent years, Hajja views this trend as an opportunity for strengthening the ecosystem. He notes that companies with robust governance practices and efficient capital usage are more likely to emerge as industry leaders despite fluctuations in funding. Hajja remains optimistic about the future, citing a positive outlook for increased funding in the upcoming quarters. With a forecasted growth rate of at least 50% compared to the previous year, P1 Ventures is poised to capitalize on Africa's burgeoning tech landscape and support the next wave of tech innovators. The firm's strategic approach and commitment to unlocking Africa's tech potential underscore its position as a key player in the continent's venture capital landscape.