OpenseedVC, a new venture capital firm, has successfully raised the first $10 million of its fund, targeting African and European businesses.
A brand-new early-stage venture capital company called OpenseedVC has successfully closed the first $10 million of its fund. The company supports primarily African and European businesses founded by seasoned operators—people who have substantial expertise running a startup. The emphasis on operator-led enterprises is indicative of a growing trend in the venture capital environment, which holds that founders with extensive industry knowledge are more likely to succeed.
Venture capitalists (VCs) have historically assessed possible investments using a range of criteria, such as product potential, team experience, and market opportunity. Nonetheless, the importance of the founder’s experience is becoming more widely acknowledged. Research indicates that a major factor in the failure of venture capital investments is the founders’ lack of commercial acumen and subject matter expertise.
Former startup operators, who run operator VCs, are considered more qualified to evaluate these elements. Based on their personal experiences, they are able to assess the business concept as well as comprehend the opportunities and difficulties unique to the sector. A recent study suggests that operator VCs do better than traditional VCs in terms of profitable investments, but there isn’t enough data to draw firm conclusions just yet.
In contrast to Silicon Valley, however, this paradigm has not gained as much traction in Europe or Africa. By using an approach in these areas, OpenseedVC hopes to close this gap.
Putting money into startup operators
Founder and General Partner Maria Rotilu states that OpenseedVC’s first closure is “well into the millions,” and fundraising is still happening. We anticipate the final closure within a year. Over the next five years, the company intends to invest in at least 60 businesses.
OpenseedVC offers more than just funding. “As an operator and investor, I have encountered extremely talented and experienced operators and the challenges they face as they try to launch their startups,” Maria Rotilu said in remarks marking the opening of the OpenseedVC Fund. Operators benefit from domain knowledge and special insight into complex issues that cutting-edge technology can solve.
Building technology start-ups that solve real problems and generate scalable value for our investors and the global economy requires visionaries who can also execute, scale, build teams, and have the grit to overcome obstacles. These are highly relevant skills in the current market. OpenseedVC aims to blend the energy and dynamism of startups with the expertise of seasoned business development professionals.
The emphasis is on early-stage businesses, especially pre-seed initiatives, which are startups’ very first fundraising round. Startups in fields such as digital health, productivity, and the future of work (including B2B software, AI, and fintech) can apply for seed funding from OpenseedVC, which provides up to $150,000.
The company gives particular founder profiles priority as part of its operator-focused strategy. These include second-time founders who have previously founded and exited a firm, as well as domain experts—operators with experience in fast-growing digital organizations.
OpenseedVC has already invested in two companies: Intron, a speech-to-text transcription model that focuses on underrepresented accents, starting with Africa, and an AI-powered supplier dispute resolution software firm (details unknown).
Diversification and a focus on female leaders are crucial
OpenseedVC aims to establish a portfolio that exhibits diversity in terms of gender, industry, and region. Rotilu emphasizes the value of women’s diversity in venture capital. She has a computer technology background and has worked as an investor and operator in both Africa and Europe.
The company aggressively works to encourage female-founded businesses, with the goal of having a 50/50 representation in co-founding teams. This is in line with a larger global trend of female-driven venture capital firms, which may eventually result in increased funding for startups led by women.
Our opinions regarding the VC
By concentrating on operator-led businesses in Europe and Africa, OpenseedVC closes a gap in these regions’ venture capital landscapes. With its early-stage funding, diversity commitment, and mentorship from seasoned operators, OpenseedVC positions itself to be a major player in supporting successful businesses in these expanding tech ecosystems. In the coming years, the operator-centric approach’s effectiveness in finding and assisting high-growth companies in Europe and Africa will become clear.
