Pan-African venture capital firm TLcom Capital has raised US$70 million in the first close of a US$150 million Africa-focused technology fund, as it steps up investment in tech-enabled start-ups across the continent and prepares to expand into Egypt.
The new fund marks TLcom’s latest effort to back high-growth African companies building digital solutions in sectors ranging from financial services and enterprise software to logistics, healthcare and consumer platforms. The firm said the capital will be deployed across multiple African markets, with a focus on businesses that use technology to address structural gaps in large, fast-growing economies.
TLcom described the US$70 million first close as a strong signal of investor confidence in African technology, despite a more cautious global funding environment that has weighed on venture capital flows over the past two years. The firm did not disclose the identities of investors participating in the first tranche.
The fund brings TLcom closer to its US$150 million target and will allow it to continue investing while it works towards a final close. The firm said it plans to make both early-stage and follow-on investments, supporting portfolio companies as they scale operations and expand across borders.
As part of the strategy, TLcom said it intends to expand its footprint to Egypt, one of Africa’s largest and most dynamic technology markets. Egypt has emerged as a major hub for start-ups in North Africa and the Middle East, producing a growing pipeline of venture-backed companies in fintech, e-commerce and enterprise services.
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The planned expansion would add to TLcom’s existing presence in key African markets, reinforcing its pan-African investment approach. The firm has built a reputation for backing companies that target mass markets and leverage technology to deliver essential services at scale.
Africa’s technology sector has matured rapidly over the past decade, attracting billions of dollars in venture funding as start-ups tap into a young population, rising smartphone adoption and improving digital infrastructure. However, funding slowed sharply after 2022 as higher global interest rates and risk aversion prompted investors to pull back from emerging markets.
Despite the slowdown, investors have continued to show interest in funds with a strong on-the-ground presence and a track record of identifying resilient business models. TLcom said its investment thesis centres on companies with clear paths to revenue generation and profitability, rather than growth at any cost.
Industry analysts say Egypt’s inclusion in TLcom’s expansion plans reflects a broader shift by investors seeking to diversify geographically within Africa. While West and East Africa have historically dominated venture capital inflows, North Africa led by Egypt has gained prominence as start-ups scale regionally and attract international capital.
TLcom’s new fund is expected to back a mix of first-time founders and repeat entrepreneurs, with ticket sizes tailored to the stage and needs of each business. The firm said it will continue to work closely with portfolio companies, offering strategic support in areas such as governance, market expansion and fundraising.
The announcement comes as African start-ups face pressure to demonstrate sustainable growth amid tighter funding conditions. Venture capital firms with fresh capital are increasingly selective, prioritising sectors and founders that can deliver measurable impact and long-term value.
TLcom said the fund will also support innovation that addresses development challenges, including financial inclusion, access to healthcare and more efficient supply chains, while generating competitive returns for investors.
With the first US$70 million secured, TLcom joins a small group of Africa-focused venture firms that have managed to raise significant capital in a challenging market, underlining continued if cautious optimism about the continent’s digital economy.
