Capria VC, a global venture firm with $207 million in assets under management, runs a unique model for investing in emerging markets by backing startups and local fund managers. Globally, it has invested in 17 fund managers, giving it indirect exposure to nearly 400 portfolio companies, while directly investing in only 41 startups.

Capria’s African partner firms are Global Ventures, Lateral Frontiers and Atlantica Ventures. “This model is powerful because it gives us broad access to market insights. It’s a huge data set, which benefits both us and our portfolio companies,” Mobola da Silva, the Africa partner at Capria, told TechCabal.

She joined Capria in 2023 initially as a venture partner before transitioning to a partner in 2024 and relocating from Lagos to Nairobi to strengthen Capria’s on-ground presence on the continent.

Before joining Capria, she spent 14 years working at the intersection of venture capital and emerging markets and held senior roles at the Draper Richards Kaplan Foundation, the uMunthu Fund, and Alitheia Capital.  

“The common theme (of my career) is deploying capital into the most promising opportunities and backing founders best positioned to scale transformative businesses,” da Silva said. 

Capria invests $1-3 million in startups with capital also reserved for follow-on investments. The firm has directly invested in six African startups, focusing on sectors driving large-scale impact and innovation, like fintech, agtech, HRtech/jobtech, edtech, healthtech, and B2B SaaS. 

“These industries represent key areas where technology and entrepreneurship can create transformative solutions in emerging markets,” da Silva explained. 

It counts Moniepoint, Paymob, and Seamless HR in its direct portfolio. In MAX, it invested alongside Global Ventures, one of its partner firms. In its indirect portfolio, it is exposed to LipaLater, Klasha, and Figorr, among others in Africa. 

Venture capital firms are often split between investing teams and support teams that guide portfolio startups. Besides its unique investing model, Capria also has a unique support approach. It has an in-house AI team comprising four developers, founding partner Will Poole—an ex-tech entrepreneur with sector expertise—and a member of its support team.

“The AI team is a resource available to all our portfolio companies. Any company can approach us and say, “We’re thinking of implementing AI in this way, but we have challenges—how can you help?” They don’t have to use the AI team, but it’s an option. Of course, there’s some prioritisation. The team can’t work with all companies simultaneously, so they phase projects depending on workload,” da Silva said. 

TechCabal spoke to da Silva to understand the firm’s investment thesis and plans for Africa. 

This interview has been edited for length and clarity.

How do you source and identify promising opportunities in such a fragmented market? 

At Capria, we prioritise a set of core elements when evaluating startups. We look for exceptional teams, strong revenue traction, and compelling unit economics that demonstrate long-term viability. A startup’s ‘right to win’ in its market is critical, along with an asset-light model that leverages technology—particularly applied AI—to drive scale and efficiency. Additionally, we focus on companies operating in large and growing markets, ensuring they have the potential for significant market impact.

Which qualities do you look for in founding teams beyond their product or service, particularly regarding resilience and cultural fit for African markets?  

At Capria, we evaluate founders and founding teams based on several key factors like founder-market fit. We prioritise alignment between a founder’s skills, experience, and personal qualities with the market’s needs. While this is a strong preference, we may make exceptions for serial entrepreneurs with a proven track record.

We also look at their soft skills and coachability. Founders must demonstrate humility and the ability to accept feedback, as this is critical for long-term success. For younger founders, we assess strategic thinking, domain knowledge, passion, and grit—often validated through third-party references early in our diligence process.

We also prefer diverse founding teams but, at a minimum, expect founders to be deeply connected within their industry ecosystem.

What’s your due diligence process, from initial pitch review to deeper market and team assessments?

We have a multi-step process that includes initial screening after the first conversation with the founder, first-level investment committee (IC) approval, due diligence (commercial, financial, legal, and technology), final IC approval, investment documentation, signing, and deal execution. Each step has specific tasks we follow to ensure we run a comprehensive and thorough process.

How do you structure investments in Africa? 

We use several strategies to structure investments in Africa to mitigate the effects of macro risks like portfolio diversification. Capria diversifies investments across different sectors, stages, and regions within Africa, helping spread risk and reduce the impact of volatility in any one area.

We also collaborate with local partners who have deep market knowledge and experience is invaluable. They provide insights into navigating the specific challenges and opportunities of the local market. 

Capria emphasises that strong corporate governance and financial controls within portfolio companies are crucial. This helps ensure transparency, accountability, and efficient use of capital, which are essential in uncertain environments. In some instances, mechanisms such as liquidation preferences or anti-dilution clauses protect against unfavourable market conditions or company performance. 

You focus on Series A and beyond, avoiding seed-stage startups. Why is that?

Our sweet spot is Series A. We rarely invest at seed—definitely not pre-seed—but we’ve made some exceptions.

Is it because seed-stage startups are riskier, especially in Africa?

Yes, largely. At Series A, while a startup isn’t entirely de-risked, certain risks are reduced. By then, a company should have demonstrated product-market fit and a scalable, repeatable business model. Seed-stage startups are still figuring those things out. Series A funding is meant to scale a proven model. That said, we do invest in seed through some of our India-focused funds, so we’re not completely unfamiliar with it. But for our Africa fund, this is our strategy.

What’s your ideal startup?

Our strategy is Series A tech-enabled companies in key sectors like fintech (which makes up ~50% of our Africa portfolio), agtech, jobtech and B2B SaaS. We also look for a strong founding team, a robust business model and a large, growing total addressable market.

Additionally, we focus on startups applying AI in meaningful ways. To clarify, we don’t invest in AI companies building large language models (LLMs) or AI-native apps. We invest in tech companies—like fintech or jobtech—that use AI to enhance their businesses. We believe applied AI can be transformative in emerging markets.

To what extent do LPs influence your investment strategy regarding sectors or geographies?

The investment strategy is defined by the fund manager. LP influence is minimal.

How do you decide which local partners to invest in, and how do those partnerships work?

Capria has a network of fund managers across the four regions where we invest. These are our core investment partners—the funds we invest alongside when backing companies. Beyond that, we also have relationships with other investors in the ecosystem whom we trust and whose strategies align with ours. We co-invest with them occasionally, even if we haven’t directly invested in their funds.

We take this co-investment approach because local fund managers have key advantages. They are on the ground, present in the markets. They have a deeper understanding of the ecosystem. They have strong networks. So, investing alongside them makes sense for these reasons.

Additionally, I lead our Africa team, which sources and executes deals independently. We don’t rely solely on co-investments.

Which countries do you prioritise, and why?

We focus on key tech hubs where startup activity is concentrated. In Africa, that means Nigeria in West Africa, Kenya in East Africa, and Egypt in North Africa. We don’t invest in Southern Africa at all.

Why not? 

It’s simply a strategic decision. South Africa has a different market structure compared to East and West Africa. Its VC ecosystem is also more mature. We decided our capabilities and expertise were better suited to East and West Africa.

How have currency devaluations and rising interest rates affected deal flow and valuations in African tech? 

Currency volatility has increased FX risk, making geo-diversification, foreign currency income, and localised expenses essential for startups. Higher borrowing costs have made debt financing less accessible, leading to longer deal cycles and more stringent investment criteria.

Rising interest rates have weakened debt affordability, reducing investor appetite for high-risk early-stage investments. 

While these macroeconomic factors present challenges, startups with robust financial strategies, operational resilience, and strong leadership teams continue to attract investment and position themselves for sustainable growth. 

What is your overall outlook on investor sentiment in Africa, given current global economic conditions?

The 2025 venture capital outlook in Africa remains optimistic despite global economic challenges. Both start-ups and investors have become more disciplined, focusing on strong business fundamentals and a realistic path to growth and profitability. The African startup ecosystem is maturing, with increasing capital deployment supported by repeat entrepreneurs, local investment funds, and growing global investor interest. 

Applied AI and agentic AI will be game-changing for startups in resource-constrained environments like Africa. While challenges exist, Africa remains a viable destination for VC investment due to its demographics, technological innovation, and unmet opportunities.

Could you share an example of a startup where your fund played a key role in catalysing growth or achieving a notable milestone or exit?

Specific examples of how we have supported our portfolio companies in Africa include:

Fundraising Support: We’ve helped several portfolio companies secure follow-on funding from other investors, leveraging our relationships both within and outside Africa

AppliedAI Support: Our in-house AI team has worked with our portfolio companies to develop and test AI use cases, which include developing new products that contribute to revenue growth and significantly improve an operational function, leading to lower operational expenses. 

Sourcing Talent: We leverage our deep networks in the region to help a portfolio company source high-quality talent for key roles.

Which regulatory hurdles have you encountered in different African markets, and how did you navigate them?  

While we mostly avoid highly regulated sectors, regulation is not entirely avoidable. We try to minimise the risks wherever possible through deal structuring, co-investing with experienced/local investors, and investing in resilient founders/business models. 

How do market fragmentation and infrastructural deficits affect your investment decisions?  

We look for companies with robust business models that can thrive despite these challenges. Technology plays a big role in overcoming infrastructural deficits. We also invest in markets with the largest start-up ecosystems, which tend to be the larger, more advanced markets in the continent.

How do you adapt your investment approach to various cultural, linguistic, and economic contexts?  

We have team members on the ground in most of the markets where we invest and the majority of our team are also native to those countries.  We also invest alongside other local fund managers. 

How do you measure and track the performance of portfolio companies?

We track a range of financial and non-financial metrics that are specific to each company, sector and/or region.  We get metrics from portfolio companies monthly, and we do portfolio reporting on a quarterly basis.
 

How do you balance providing guidance with allowing founders to exercise autonomy?

We offer guidance and support in areas where we have expertise, establish clear communication channels, and set expectations upfront about our involvement and support. We respect the founders’ decision-making authority and do not get involved in the operational aspects of the business.

How do macroeconomic factors and relatively nascent capital markets influence the probability and timing of exits?  

Global economic uncertainties, including geopolitical tensions and trade policy shifts, have led to cautious investor sentiment. This environment has resulted in extended holding periods for investments, as suitable exit opportunities become scarce. 

High global interest rates and a strong US dollar have intensified fiscal pressures, particularly in emerging markets. These conditions have increased the cost of dollar-denominated debt, limiting fiscal expansion and affecting the attractiveness of exits. 

 In regions with underdeveloped capital markets, the lack of maturity hampers large-scale tech IPOs. This limitation restricts exit options for investors, often leading to prolonged investment durations.

What can founders do early in their growth to position themselves for successful exits?

Given longer timelines to profitability, founders should prioritise sustainable unit economics and disciplined financial management from the start. Navigating complex regulations is essential. Engaging with policymakers early and ensuring compliance can reduce roadblocks that deter potential acquirers or investors.

Political and economic instability can impact valuations and exit opportunities. Founders should build adaptable business models that can withstand external shocks and remain attractive to investors.

Strengthening internal capabilities in key areas like software development and tech management is crucial. Investing in talent development and attracting experienced leadership can accelerate growth and improve scalability.

Founders should proactively engage with potential acquirers, strategic partners, and later-stage investors to align on long-term exit pathways, whether through M&A, secondary sales, or public markets.