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4Di Capital Prepares Third Fund for African Tech Startups

4Di Capital, a Cape Town-based venture capital firm backed by South African billionaire Nicky Oppenheimer, is preparing its third fund to invest in seed-to-Series A firms throughout Africa.

The company, founded in 2009 by a group of entrepreneurs, raised its first angel fund in 2011 and its first venture fund in 2016. The 2019-second venture fund, managed by the SA SME Fund, has fuelled investments in South African businesses Snapt, LifeQ, and Sensor Networks, as well as Kenyan ventures Wasoko and Flare.

“We’ve been deploying capital from that fund across South Africa and the rest of Africa, fine-tuning our focus on early-stage entrepreneurial ventures,” said Justin Stanford, co-founder and general partner of 4Di. “We aim to be the first institutional check, potentially leading funding rounds, while steadfastly supporting founders as advisors, mediators, and strategic partners.”

Stanford stated, “The market is exhibiting symptoms of restarting. While we foresee hurdles, we are not looking for immediate results. We recognize the importance of a slow warm-up period, and we’re allowing ourselves plenty of time to adjust.”

He continued, “We’re cautiously exploring the present market interest, including more international fundraising. The African startup model is gaining appeal with international investors, signaling a shift from our previous reliance on local capital sources.

4DI Capital, led by South Africa’s second-richest man, Nicky Oppenheimer, has established itself as a major venture capital player in Southern and Eastern Africa. The organization, led by an experienced team of entrepreneurs, commands a high level of respect in the region.

Despite 4Di Capital’s established base of limited partners, which includes family offices, businesses, and the well acclaimed SA SME Fund, the current global financial slowdown poses a fundraising difficulty.

Oppenheimer, now placed 214th on the global wealth index, has a net worth of $10.8 billion, placing him among the world’s financial elite. He is South Africa’s second-richest person, after Johann Rupert, chairman of Richemont.

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