Frequently Asked Questions
general
Who is Future Africa?
Future Africa an early-stage innovation fund that partners with mission-driven innovators turning the continent’s most difficult challenges into global business opportunities. Our mission is to work with relevant stakeholders to empower innovators to build an abundant and just future where prosperity and purpose are within everyone’s reach. We are primarily focused on investments in the technology, media, and infrastructure spaces.
Who is the team behind Future Africa?
We are a team of experienced startup operators led by Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave. We helped found, fund, and build many of Africa’s fastest-growing startups from Andela and Flutterwave to Jumia, Kobo360, and 54gene amongst several others. This experience gives us a unique insight into the art and science venture building. Founders flock to us because we provide more than capital. We have a strong track record of successfully partnering with innovators to build high-growth technology businesses with our strong community of angel investors, venture capital, advisors, and talented professionals who support our companies as they grow.
Why should you invest with us?
In our first fund, which kicked off in 2015, we invested $1.5 million dollars across 19 companies including some of Africa’s fastest-growing tech startups such as Andela, Flutterwave, 54Gene, Kobo360, and Lori Systems, amongst others. Since our fund’s close, we have grown our portfolio 8x to $12m in assets under management, and over the last five year’s our startups have created $1.2 billion of company value, gone on to raise $300 million in follow-on capital, made $120 million in annual revenues, while creating 3,000 direct jobs and 12,000 indirect jobs.
What is the Future Africa Collective?
The Future Africa Collective is our people-powered innovation fund that allows our carefully curated community of co-investors to invest with us on a deal by deal basis through investment syndicates or quarterly via the Future Africa Rolling Fund.
What is an Investment Syndicate?
A syndicate is a special fund created to invest in a startup. Syndicates pool capital from multiple investors into the special fund created, and then invest the pooled funds in a company. Future Africa sources the deals, analyzes and vets the investments, and also personally invests in each deal we present to the collective. We will only present innovators and businesses we believe meet our high standards for a good and ethical investment.
How can I join the Future Africa Collective?
We admit a select number of investors into the Future Africa Collective four times a year. Last year we admitted only 147 people out of over 700 applicants. You’re getting this email because you’ve been vetted to join the collective. To join, you’re required to pay an annual fee of $1000. You can make your payment via the button below.
Is membership to the Future Africa Collective free?
No, it is not. The Future Africa Collective charges a membership fee of $1000 a year. This money goes to pay financial and investment analysts which prepare companies to be presented to the collective. Should you choose to invest, each deal commands a fee pro-rated by the amount invested (for example a $10,000 investment in a $100,000 deal will command an $800 fee). This fee covers legal and company formation costs associated with each syndicate deal. Finally, every investment done via our platform requires you to commit to paying us and our fund advisor a 20% carry on your investment returns whenever you exit.
What is Carry?
Carry is a percentage of positive returns generated by the investment. It is typically earned after the investors receive their invested capital back. For example, let’s say you invest $1000 in one of our syndicates. If the investment returns $2000, you would first get your $1000 and then we would earn 20% of what is left – 20%* ($2,000-$1,000) = $200.
What does Membership of Future Africa Collective offer me?
Membership of the collective gives you access to our deal flow. Every quarter, we will send you at least 5 startups that you can invest in. Each deal comes in an email from us with:
- A brief on the company and why we believe it is an amazing investment.
- A detailed pitch deck we co-create with the company.
- A live Q&A call with the founding team of the company.
- Data room access which includes necessary due diligence corporate and financial data.
- Most importantly, a link to the company’s deal syndicate page where you can invest alongside us with a $5,000 minimum investment slot.
- Access to the Future Africa Rolling Fund a quarterly fund where you get access to every investment we make in the quarter you invest for a minimum subscription of $5,000.
Must I invest in the companies that are sent to me?
No, you must not. Choosing the companies to invest in is entirely your prerogative. We simply present you with full information about companies we are investing in on a deal by deal basis and then you can decide to co-invest with us or not. If you do choose to invest in a company, it is important that you commit to the deal on our funding platform and wire your funds as soon as you can! Our deals are so good they have a history of getting closed out really fast. It can sometimes feel like a game of fastest fingers. Our rule is first come, first serve.
How much can I invest?
You must invest at least $5,000 should you choose to participate in a deal.
Can I exit my investment and get my money back?
Eventually yes. However, it is important you understand you have no control over when you can exit the investment. Typically investors exit their investments in 7-14 years via a liquidation event (merger, acquisition, or IPO) or via secondary sale (selling your stock to larger investors). Future Africa has sole discretion over the timing of exit for the entire syndicate. We will notify co-investors when an exit is possible.
When do I get returns on investment?
Although your investments will typically increase in value with every new round of investment you will only get returns on your investment when startups exit. This typically happens in 7-14 years via acquisition, merger, or IPO. From time to time, it is also possible to exit the investment via secondary sale to new investors. Future Africa has sole discretion over when an investment via the syndicate deal exits. At this point, returns are split commensurate to amounts members invested in the deal.
How are returns calculated?
The Future Africa Collective works with an institutional funding partner to automatically calculate investors’ returns. Returns are proportional to amounts invested in a syndicate less our carry. Here is a small calculator we built to help you navigate calculating your return on investment from a hypothetical company depending on the amount invested and exit multiple.
What are the risks involved?
Early-stage investing is very high risk. Although we thoroughly vet the startups and founders that we present to the collective, venture capital – especially at the earliest stages where we invest is unpredictable. You could make multiples on your investment or lose all your money. However, we reduce the risk of failure by leveraging our operating expertise to provide active management and coaching for innovators. Do note that you are investing at your own risk and we cannot be held liable for any losses you incur while investing.
Frequently Asked Questions
general
Who is Future Africa?
Future Africa an early-stage innovation fund that partners with mission-driven innovators turning the continent’s most difficult challenges into global business opportunities. Our mission is to work with relevant stakeholders to empower innovators to build an abundant and just future where prosperity and purpose are within everyone’s reach. We are primarily focused on investments in the technology, media, and infrastructure spaces.
Who is the team behind Future Africa?
We are a team of experienced startup operators led by Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave. We helped found, fund, and build many of Africa’s fastest-growing startups from Andela and Flutterwave to Jumia, Kobo360, and 54gene amongst several others. This experience gives us a unique insight into the art and science venture building. Founders flock to us because we provide more than capital. We have a strong track record of successfully partnering with innovators to build high-growth technology businesses with our strong community of angel investors, venture capital, advisors, and talented professionals who support our companies as they grow.
Why should you invest with us?
In our first fund, which kicked off in 2015, we invested $1.5 million dollars across 19 companies including some of Africa’s fastest-growing tech startups such as Andela, Flutterwave, 54Gene, Kobo360, and Lori Systems, amongst others. Since our fund’s close, we have grown our portfolio 8x to $12m in assets under management, and over the last five year’s our startups have created $1.2 billion of company value, gone on to raise $300 million in follow-on capital, made $120 million in annual revenues, while creating 3,000 direct jobs and 12,000 indirect jobs.
What is the Future Africa Collective?
The Future Africa Collective is our people-powered innovation fund that allows our carefully curated community of co-investors to invest with us on a deal by deal basis through investment syndicates or quarterly via the Future Africa Rolling Fund.
What is an Investment Syndicate?
A syndicate is a special fund created to invest in a startup. Syndicates pool capital from multiple investors into the special fund created, and then invest the pooled funds in a company. Future Africa sources the deals, analyzes and vets the investments, and also personally invests in each deal we present to the collective. We will only present innovators and businesses we believe meet our high standards for a good and ethical investment.
How can I join the Future Africa Collective?
We admit a select number of investors into the Future Africa Collective four times a year. Last year we admitted only 147 people out of over 700 applicants. You’re getting this email because you’ve been vetted to join the collective. To join, you’re required to pay an annual fee of $1000. You can make your payment via the button below.
Is membership to the Future Africa Collective free?
No, it is not. The Future Africa Collective charges a membership fee of $1000 a year. This money goes to pay financial and investment analysts which prepare companies to be presented to the collective. Should you choose to invest, each deal commands a fee pro-rated by the amount invested (for example a $10,000 investment in a $100,000 deal will command an $800 fee). This fee covers legal and company formation costs associated with each syndicate deal. Finally, every investment done via our platform requires you to commit to paying us and our fund advisor a 20% carry on your investment returns whenever you exit.
What is Carry?
Carry is a percentage of positive returns generated by the investment. It is typically earned after the investors receive their invested capital back. For example, let’s say you invest $1000 in one of our syndicates. If the investment returns $2000, you would first get your $1000 and then we would earn 20% of what is left – 20%* ($2,000-$1,000) = $200.
What does Membership of Future Africa Collective offer me?
Membership of the collective gives you access to our deal flow. Every quarter, we will send you at least 5 startups that you can invest in. Each deal comes in an email from us with:
- A brief on the company and why we believe it is an amazing investment.
- A detailed pitch deck we co-create with the company.
- A live Q&A call with the founding team of the company.
- Data room access which includes necessary due diligence corporate and financial data.
- Most importantly, a link to the company’s deal syndicate page where you can invest alongside us with a $5,000 minimum investment slot.
- Access to the Future Africa Rolling Fund a quarterly fund where you get access to every investment we make in the quarter you invest for a minimum subscription of $5,000.
Must I invest in the companies that are sent to me?
No, you must not. Choosing the companies to invest in is entirely your prerogative. We simply present you with full information about companies we are investing in on a deal by deal basis and then you can decide to co-invest with us or not. If you do choose to invest in a company, it is important that you commit to the deal on our funding platform and wire your funds as soon as you can! Our deals are so good they have a history of getting closed out really fast. It can sometimes feel like a game of fastest fingers. Our rule is first come, first serve.
How much can I invest?
You must invest at least $5,000 should you choose to participate in a deal.
Can I exit my investment and get my money back?
Eventually yes. However, it is important you understand you have no control over when you can exit the investment. Typically investors exit their investments in 7-14 years via a liquidation event (merger, acquisition, or IPO) or via secondary sale (selling your stock to larger investors). Future Africa has sole discretion over the timing of exit for the entire syndicate. We will notify co-investors when an exit is possible.
When do I get returns on investment?
Although your investments will typically increase in value with every new round of investment you will only get returns on your investment when startups exit. This typically happens in 7-14 years via acquisition, merger, or IPO. From time to time, it is also possible to exit the investment via secondary sale to new investors. Future Africa has sole discretion over when an investment via the syndicate deal exits. At this point, returns are split commensurate to amounts members invested in the deal.
How are returns calculated?
The Future Africa Collective works with an institutional funding partner to automatically calculate investors’ returns. Returns are proportional to amounts invested in a syndicate less our carry. Here is a small calculator we built to help you navigate calculating your return on investment from a hypothetical company depending on the amount invested and exit multiple.
What are the risks involved?
Early-stage investing is very high risk. Although we thoroughly vet the startups and founders that we present to the collective, venture capital – especially at the earliest stages where we invest is unpredictable. You could make multiples on your investment or lose all your money. However, we reduce the risk of failure by leveraging our operating expertise to provide active management and coaching for innovators. Do note that you are investing at your own risk and we cannot be held liable for any losses you incur while investing.