Investment Firm TLcom Capital Doles Out Half of $5 Million Pre-Seed Fund to Foster Emerging African Businesses
TLcom Capital, a leading venture capital firm, is making waves in Africa's tech industry with its innovative multi-stage investment strategy. The firm launched its $5 million TAPSI (TIDE Africa Pre-Seed Investments) fund in 2022, aimed at investing at the pre-seed stage, providing up to $200,000 to startups at the idea-validation phase.
TAPSI acts as an "upstream feeder" into TLcom’s larger $154 million TIDE Africa Fund II, which targets growth-stage investments. This approach allows TLcom to support promising startups from inception through subsequent larger rounds, embedding the firm deeply in the startup lifecycle and enhancing the chances of success by partnering early with founders.
Startups Benefiting from TAPSI
Several startups have already benefited from TAPSI's investment. Among them are:
- TurnStay, a South African travel payment platform that recently closed a $2 million seed round, backed through TAPSI during its early stage.
- Talstack, a Nigerian edtech and HR tech firm that used TAPSI capital to validate its model and subsequently attracted follow-on investment from TIDE II.
- Bright Financial, a fintech startup operating in underserved markets in Sudan and Ethiopia.
- Tradehub, a B2B e-commerce startup based in Egypt.
- Agrails, an agricultural technology venture based in Kenya.
- Three female-led startups, a testament to TLcom’s commitment to supporting diverse founders.
TLcom plans to make up to 10 more pre-seed investments under TAPSI by the end of 2026 to continue expanding its early-stage portfolio across Africa.
A Diverse and Growing Portfolio
TAPSI's portfolio showcases a diverse range of industries and geographies, including investments in the current round. The firm's involvement as a long-term partner for Africa's most ambitious founders is further strengthened by TAPSI.
Eloho Omame, Partner at TLcom Capital, emphasizes the importance of supporting and growing entrepreneurs from the beginning. The multi-stage investment strategy aims to embed TLcom in a startup's lifecycle from initial concept to potential exit. With TAPSI, TLcom is uniquely positioned to support companies at every stage, from ideation and product-market fit to scaling and maturity.
In addition to TAPSI investments, TLcom has a portfolio that includes some of Africa's most successful scaleups, including Andela, uLesson, Autochek, and FairMoney. The firm's recent investment in HoneyCoin, a company building infrastructure to bridge traditional banking and the digital asset world in Africa, further demonstrates its interest in fintech innovation.
Sources: [1] Disrupt Africa (2022) TLcom Capital launches $5m pre-seed fund for African startups [2] TechCrunch (2022) TLcom Capital launches $5 million pre-seed fund for African startups [3] TechCabal (2022) TLcom Capital announces $5 million pre-seed fund for African startups [4] TechCabal (2023) TLcom Capital's TAPSI fund invests in TurnStay, a South African travel payment platform [5] TechCabal (2023) TLcom Capital invests in HoneyCoin, a company building infrastructure for digital assets in Africa
Venture capital firm TLcom Capital, through its TAPSI fund, is financing businesses in the technology sector, such as TurnStay, Talstack, Bright Financial, Tradehub, Agrails, and three female-led startups, by providing capital at the pre-seed stage. This form of investing allows TLcom to support startups throughout their lifecycle, from conception to potential exit, and to expand its early-stage portfolio across Africa.
TLcom's investment strategies encompass a diverse range of industries and geographies, with TAPSI acting as a key component in its goal to support and grow entrepreneurs from the initial concept, as exemplified by its partnerships with companies like Andela, uLesson, Autochek, and FairMoney, and its recent investment in HoneyCoin, a fintech venture seeking to bridge traditional banking and digital assets in Africa.
