Reflecting on Progress: The Evolution of All-Female Investors Panels at the Angel Fair Africa

By Kanini Mutooni, Africa Managing Director, DRK Foundation

I have a vivid memory of the first all-female investor panel at Angel Fair Africa 2016, as if it happened just yesterday. At that time, the only female fund manager I knew of was the incredible Sapna Shah, General Partner (GP) at Novastar. The concept of a “female fund manager” was still uncommon. Sapna and I shared the panel and discussed early-stage venture capital. Although I can’t recall the specifics of our conversation, what resonated with me was our mutual desire to change the dynamics in the ecosystem. I was eager to find ways to support more female investors because more female investors would likely mean more female entrepreneurs, leading to greater wealth creation across Africa.

Reflecting on my own entrepreneurial journey, the strongest memory I have is one of loneliness. As a Black female founder in Berlin, managing a SaaS tech platform without any tech background but with an impressive MBA and about nine years of experience in investment banking in London, I thought my credentials would make my journey as a founder a bit easier. However, raising sufficient capital, scaling my company, developing a sustainable product, and achieving profitability (all while caring for my three children, all under the age of three) proved to be incredibly challenging. After a 5-year journey, I eventually sold the company. This experience became the primary motivation for my current work of supporting and investing in entrepreneurs as a female investor. Having experienced the struggles they face firsthand, I am fully aware of the challenges they encounter.

The Rise of Female Fund Managers in Africa

Following the conclusion of my entrepreneurial venture with a modest exit, I transitioned into a new role as an impact investor, starting by serving as the Chair of the Global Innovation Fund, a $300m impact fund established by five G7 countries. Around the same time, I became part of the inaugural investment committee of the Africa Enterprise Fund, a $200m fund that provides financing to agribusiness companies across Africa.

Through these roles as an investor with the authority to allocate capital, I realized the significance of having women seated at the investment table, making substantial decisions regarding capital deployment.

Female fund managers and investors are now taking center stage in Africa’s financial ecosystem, driving investments in key sectors such as fintech, healthcare, and agribusiness. These women are reshaping the landscape of the investment industry by adopting a gender-lens approach that prioritizes women-led businesses and enterprises that empower underserved communities. Their impact is instrumental in fostering inclusive growth and expanding investment opportunities in areas previously overlooked by mainstream capital.

Despite their growing prominence, female fund managers and investors encounter several challenges:

1. Access to Networks: Many female fund managers and investors struggle to break into the male-dominated networks that control access to institutional capital.
2. Bias in Fundraising: Gender bias often leads to skepticism about the capabilities of female fund managers in overseeing large-scale funds, slowing down the fundraising process.
3. Track Record and Institutional Backing: Without extensive track records, many female fund managers find it difficult to secure significant investments from institutional players.
4. Non-Traditional Fund Structures: Female fund managers often adopt innovative fund structures, such as local currency funds, which may not always align with traditional investor expectations.

Despite these obstacles, several female fund managers have succeeded in establishing firms and making impactful investments over the past decade. Below are a few standouts with innovative approaches to their fund structure and fundraising process.

Tokunboh Ishmael – Alitheia Capital

• Notable Investments: Alitheia IDF Fund has made significant investments in companies like Pula, a microinsurance firm for smallholder farmers, and Lifestores Healthcare, a healthtech company improving access to medicine.
• Exits: While Alitheia IDF Fund continues to grow, its investments are expected to yield long-term success.

Maya Horgan Famodu – Ingressive Capital

• Notable Investments: Ingressive Capital has invested in high-growth tech companies such as Paystack, which was acquired by Stripe for $200 million, and Tizeti, an internet service provider.
• Exits: Paystack’s acquisition serves as a significant exit for the firm.

While the list could be longer, there are numerous female investors in the ecosystem who have made notable exits and backed highly successful companies.

Efforts are underway to drive change in the investor ecosystem, with stakeholders like the Mastercard Foundation Africa Growth Fund (MFAGF) playing a crucial role. By offering working capital loans and supporting non-traditional fund structures like open-ended funds and impact milestone-linked funds, the MFAGF serves as a catalyst in empowering female-led funds. I proudly serve as an Investment Committee Member on the MFGAF, and the fund’s support has been instrumental in increasing female GPs’ access to catalytic capital. The working capital loans provided by MFAGF offer essential liquidity, helping emerging fund managers scale their operations while seeking long-term investment partners.

The fund has also facilitated the establishment of Flexible Fund Structures by supporting local currency funds and open-ended funds. This approach allows managers to structure their investments in ways that better align with Africa’s unique market dynamics, mitigating risks such as currency volatility.

The Moremi Initiative Accelerator is another key player in fostering the growth of female fund managers across Africa. Designed to empower women in leadership, the Moremi Initiative has played a vital role in identifying and developing the next generation of female leaders, particularly in the financial and investment sectors. Through its accelerator programs, Moremi provides mentorship, training, and access to networks, enabling emerging female fund managers to develop the skills and confidence required to raise capital, manage funds, and expand their impact.

Moremi’s focus on capacity-building for women in finance ensures that participants not only gain technical expertise but also cultivate the leadership qualities necessary for success in a highly competitive field. By connecting women fund managers with global investors, Moremi plays a crucial role in broadening their access to capital and enhancing their visibility within the investment ecosystem. The accelerator’s holistic approach to nurturing female talent is essential for creating a more inclusive and diversified investment landscape across Africa.

Another influential initiative channeling capital towards female fund managers and investors in Africa is the 2X Challenge, launched by the G7 Development Finance Institutions (DFIs). The 2X Challenge is committed to mobilizing $15 billion by 2022 to support women in business, including female fund managers, entrepreneurs, and women-led enterprises in emerging markets. This initiative has been instrumental in creating an enabling environment for female fund managers by providing access to capital, technical assistance, and visibility.

At Draper Richard Kaplan (DRK) Africa, we are dedicated to ensuring that at least 30% of our capital is allocated to female entrepreneurs each year. This commitment isn’t just a checkbox for us; it’s ingrained in a clear gender-lens investment thesis. As the Managing Director for Africa at DRK, my role is to ensure that our investments align with the mission set by our founders – supporting entrepreneurs who are addressing the continent’s most pressing challenges but have limited access to capital. Often, these are female founders who are underserved and disregarded, and we are here to change that.

The growth of female fund managers and investors in Africa goes beyond achieving gender equality in the financial sector; it is about driving economic development, fostering innovation, and promoting inclusive growth. Female fund managers often invest in early-stage, small, and medium-sized companies – businesses crucial to Africa’s long-term economic success but frequently overlooked by traditional investors. These businesses are the engines of job creation, innovation, and social impact. Research indicates that female fund managers are more inclined to invest in women-led businesses and sectors that address the needs of underserved communities, such as healthcare, education, and financial inclusion. By supporting these companies, female fund managers are bridging the gender financing gap and ensuring that diverse voices and solutions receive support. Draper Richard Kaplan’s (Africa’s) commitment to allocating a minimum of 30% of our capital each year to female entrepreneurs exemplifies an investor who truly embodies their gender lens thesis. My role as DRK’s Managing Director for Africa is to ensure this commitment is upheld.

I firmly believe that had I known some female investors during my entrepreneurial journey years ago, I would have greatly benefited not only from their capital but also from their experience and mentorship. I dream that in the next 20 years, every female entrepreneur embarking on solving a significant challenge will have access to a female investor genuinely invested in their success.

Furthermore, having more female fund managers and investors can reshape the narrative in Africa’s investment ecosystem, encouraging a wider range of investment strategies and fostering more resilient, inclusive economies. Female investors have a unique ability to balance financial returns with social impact, positioning them uniquely to contribute to Africa’s sustainable growth.

In conclusion, supporting more female investors in Africa is not just about equity; it is a strategic imperative for building a robust, inclusive, and forward-thinking investment landscape that benefits all. I am thrilled and honored to be part of this promising journey.

I will be convening this year’s all-female investor panel at the 11^th Angel Fair Africa from November 7^th to 8^th 2024 at www.trific.co.ke in Nairobi, Kenya.