Japan's Samurai Incubate raises Africa fund
Japanese venture capital firm Samurai Incubate has closed its second Africa-focused fund above target at just over JPY2.02 billion ($18.6 million).
The Tokyo-based GP launched the vehicle in January 2020 – looking for JPY2 billion – and continued fundraising throughout COVID-19, eventually securing commitments from 54 LPs. Most investors have experience in overseas investment or founding and developing start-ups. Samurai is keen to match up portfolio companies with LPs that have relevant knowledge or expertise.
Notable investors include Toyota Tsusho Corporation, a Toyota Group subsidiary that operates as a supplier of materials, machinery, parts, and logistics services to the automaker globally. It has a strong presence in Africa, mainly through trading company CFAO. Toyota Tsusho established Mobility 54 as a corporate venture capital fund focused on Africa.
Samurai started investing in Africa in 2018 through Leapfrog Ventures. Leapfrog was allocated JPY270 million from Samurai’s sixth Japan fund for deployment in Africa and this effectively became Fund I. In 2019, Leapfrog was renamed Samurai Incubate Africa.
The new fund will make investments of $50,000-800,000 in pre-seed, seed, and Series A rounds for companies involved in financial technology, logistics, healthcare, consumer, energy, agricultural technology, mobility, and entertainment. Kenya, Nigeria, and South Africa are the core geographies, but they will be joined by Egypt for Fund II.
Samurai has backed 26 African start-ups to date, according to a statement. Among them are household chore management app Eden Life, financing marketplace Evolve Credit, energy system software provider Shyft Power Solutions, freight forwarding business Oneport, rental car finance provider FMG, and food bulk buying platform Pricepally.
Established in 2008, Samurai is currently managing its eighth Japan fund. As of March, it had backed more than 140 domestic start-ups and launched operations in China and Israel, as well as Africa.
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