Key Points:
- 4Di Capital, backed by billionaire Nicky Oppenheimer, prepares its third fund to invest in seed-to-Series A startups across Africa.
- Launched in 2009, 4Di Capital’s 2019 fund has invested in startups like Snapt and Flare, focusing on early-stage ventures across South Africa and Kenya.
- Despite its strong base, 4Di Capital faces fundraising challenges due to the global financial downturn, impacting its established limited partners.
Cape Town-based venture capital firm 4Di Capital, backed by South African billionaire Nicky Oppenheimer, is readying its third fund to invest in seed-to-Series A startups across Africa.
The firm, launched in 2009 by a group of entrepreneurs, deployed its first angel fund in 2011 and its maiden venture fund in 2016. The 2019-second venture fund, anchored by the SA SME Fund, has fueled investments in South African startups like Snapt, LifeQ, and Sensor Networks, alongside Kenyan ventures Wasoko and Flare.
4Di Capital targets early-stage ventures
“We’ve been deploying capital from that fund across South Africa and the rest of Africa, fine-tuning our focus on early-stage entrepreneurial ventures,” said Justin Stanford, co-founding general partner at 4Di. “We aim to be the first institutional check, potentially leading funding rounds, while steadfastly supporting founders as advisors, mediators, and strategic partners.”
Stanford noted, “The market is showing signs of reopening. While we anticipate challenges, we’re not rushing for immediate results. We understand the need for a gradual warming-up period, and we’re giving ourselves ample time to adapt.”
He added, “We’re cautiously exploring the current market appetite, including increased overseas fundraising. The African venture model is gaining traction with international investors, a shift from our earlier reliance on local funding sources.”
4DI faces fundraising challenges
4DI Capital backed by South Africa’s second-richest man Nicky Oppenheimer has established itself as a prominent venture capital player in Southern and Eastern Africa. Led by a seasoned team of entrepreneurs, the firm commands significant respect within the regional landscape.
However, the prevailing global financial downturn presents a fundraising challenge, despite 4Di Capital’s established base of limited partners, including family offices, corporations, and the well-regarded SA SME Fund.
Oppenheimer, currently ranked 214th on the global wealth index, boasts a net worth of $10.8 billion, solidifying his position among the world’s financial elite. He is South Africa’s second-richest individual, trailing Johann Rupert, chairman of Richemont.
