Los Angeles-based venture capital firm, Black Ostrich Ventures, has unveiled a $20 million pre-seed and seed-stage fund aimed at supporting African startups in sectors including cleantech, supply chain, ag-tech, and edtech. The fund plans to provide funding ranging from $50,000 to $200,000 and is backed by LPs in New York and undisclosed high-net-worth individuals in Los Angeles. It will focus on startups in Tanzania, Zambia, Morocco, and Uganda.

Ajani Windsor-Areago, the General Partner of Black Ostrich Ventures, noted that while the major African markets—Nigeria, South Africa, Egypt, and Kenya—receive the most capital inflows, exits and deal activities often occur in other markets. Despite fintech's dominance in funding volume and deal numbers, it accounts for less than a third of exits on the continent. Black Ostrich Ventures aims to invest in countries with potential exit opportunities that are sometimes overlooked.

The firm plans to leverage Windsor-Areago's experience in the venture capital industry and provide more than just financial support to startups. It intends to offer follow-on investments of up to $1 million if the company progresses to Series A funding. In addition to funding, the firm aims to assist startups with growth and marketing expertise to help them expand their businesses effectively.

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