Uncovered Fund, a Japanese venture capital firm focused on African startups, has launched a new $20 million investment vehicle in partnership with Monex Ventures. The fund, named Uncovered Monex Africa Investment Partnership (UMAIP), will invest in startups across Africa and the Middle East, with initial investments ranging from $100,000 to $500,000 and follow-on rounds between $1 million and $2 million. Takuma Terakubo, CEO of Uncovered Fund, stated, “Since starting our first fund in 2020, we have invested in 29 outstanding entrepreneurs.” These investments span 17 countries in Africa and the Middle East, supporting startups in sectors such as communications, logistics, automotive technology, e-commerce, and fintech.
The UMAIP fund reflects a growing trend of Japanese investment in Africa, as Japan shifts from aid to private investment. The fund will focus on sectors such as finance, sustainability, mobility, and distribution, with specific areas of interest including agritech, logistics, climate tech, solar, mobile payments, microlending, and digital retail. Terakubo emphasized the importance of leveraging Japan’s financial strengths to support African startups, stating, “Monex has been one of our key partners since my previous firm.
They have long been interested in Africa and are looking to support fintech and crypto-related companies in the region.”
The fund also aims to connect African startups with Japanese companies for potential partnerships, acquisitions, and further funding.
Investing in African innovation
“We provide not only access to Japanese technology and business know-how but also monitor these partnerships to ensure long-term value creation,” Terakubo added.
Egypt has been identified as a key market for the fund, primarily targeting consumer-focused businesses. “Egypt represents one of the largest markets in Africa with strong consumer purchasing power,” Terakubo said. “We aim to expand business opportunities from Egypt across the entire MENA region.”
Uncovered Fund’s move reinforces the increasing investment attention towards the potential of African startups, offering new avenues for growth and collaboration between African markets and Japanese enterprises.
The firm also hosts an annual Showcase Africa event to connect African startups with Japanese businesses and investors, claiming to have facilitated connections between over 500 Japanese businesses and 50 African startups. The launch of the UMAIP fund signifies a growing interest in the African tech ecosystem from Japanese investors, offering new opportunities for African startups to scale and innovate. With a focus on key sectors and a commitment to fostering long-term partnerships, Uncovered Fund and Monex Ventures aim to make a significant impact on the African startup landscape.