OpenseedVC, which helps African and European businesses get started, reaches first close of $10 million in funding

Founder-market fit is one of the most important factors in a startup’s success, and operators (those involved in the day-to-day operations of a startup) turned founders have a near-impossible chance of finding that fit. Have a fair advantage. Data shows that founders’ lack of expertise and business acumen contributes to the failure of VC investments.

The same principles apply somewhat to operator VCs (companies usually founded by former startup founders). Although there is no conclusive evidence that operator VCs make better investors, recent research shows that founders and operators who become VCs much more successful Supporting companies rather than traditional investor VC.

Operator VC has a long history in Silicon Valley. Still, adoption is less widespread in Europe and Africa, where only 8% of venture capital firms are led by former operators, compared to almost half in the US. OpenseedVC is applying this model to Africa and Europe with its new fund.

The company, which will be the first check-in for startups launched by operators from both regions, has reached its first close of $10 million in angel-style initial funding. General partner Maria Lotil declined to disclose the amount, but said, “The first close is in the millions of dollars and financing is still in progress.” OpenseedVC hopes to reach a final conclusion within a year, she added.

Support operators with funds…and operators

Rotilu founded OpenseedVC with a clear vision to make early investments in experienced operators aspiring to launch technology companies. OpenseedVC said in a statement that it will not only provide capital and belief to these founders in the early stages, but also the support of a community of experienced operators, which currently consists of more than 50 people.

“If you support businesses that are taking leaps and bounds in identifying problems and building technology, you likely recognize the common challenge of the need for capital and guidance from other experienced individuals. To address this, we are focused on strengthening our operator network in four key areas,” Rotilu said in a conversation with TechCrunch.

“In the early stages, software engineering expertise is critical. We need people to hire technical talent, build teams, understand infrastructure design, and provide valuable first-hand experience. So if that’s the common denominator, we have first-hand experience optimizing across software engineering, product, go-to-market, people and talent.”

Most of the people in OpenseedVC’s operator network are people Rotilu has worked with or been introduced to. Some are also limited partners in the fund but do not currently earn carry. Lotil also noted that other LPs include founders and professionals from traditional and technology companies, as well as high-net-worth individuals from Africa, Europe, and the United States.

Supporting pre-seed startups in Africa and Europe

London-based OpenseedVC is targeting at least 60 startups over the next five years. This early-stage fund operates with an open application process, allowing founders to apply without the need for introductions, and is focused on the future of commerce (including B2B software, AI, and fintech). The company plans to award checks of up to $150,000 to startups. , the future of work (productivity), digital health.

“We’re focused on early stage. That’s our sweet spot. Openseed is keen on investing in pre-seed, but early stage pre-seed is at a later stage than traditional VC. We tend to be independent and move quickly, and it’s not necessarily necessary for the founders to get a lead investor or anything like that before investing,” Lotil said. She added that the fund is interested in specific founder profiles within a broader operator-focused lens. She is an expert in her field (she has run high-growth technology companies, including first-time founders) and a second-time founder who started and exited a startup.

So far, the early-stage fund has made two investments. One is a stealth AI-enabled supplier dispute resolution software based in the UK, and the other is Intron, a voice-to-text transcription model for underserved accents originating from Africa.

“We chose Africa and Europe in order to apply our theory to our research in these regions. Our argument is that experienced operators should be provided with adequate capital and support from their peers. By getting behind us early with support, we can build a diversified portfolio that delivers incredible returns for investors and provides critical support to ambitious operators when they need it most.” he said. Prior to joining OpenseedVC, he invested in multiple geographies using different funds.

Prior to launching the fund, Lotile served as an operator in various roles including country manager and general manager of Uber’s Nigeria branch, helping both technology companies scale to millions of users. She then completed her MBA at Oxford and served as her managing director at Oxford Seed Fund, one of Europe’s largest student-led funds.

Aiming for a diverse portfolio

An operator-turned-investor with a background in computer science, she interned at Hustle Fund, an early-stage fund in the US, during her MBA and gained experience in startups in the US, Latin America, Southeast Asia, and Sub-Saharan Africa. I have gained investment experience. Africa. She joins Octopus Ventures, one of Europe’s largest funds, and First Check Fund, her £10m early-stage fund for European start-ups in the B2B software, fintech and healthcare sectors. I joined the company as a principal and fund manager.

At Octopus, Lotil said she recognized the need to focus more on Africa, a market in which she has made angel investments several times during her professional career. The London-based VC firm offered little avenue for that, but he also wanted the clarity and autonomy to develop a strategy he saw fit with his experience as a manager and investor in Africa and Europe. Lotil saw it as an opportunity to start a VC firm. .

The growing number of female-led VC firms globally is a positive trend (although it remains difficult for women, especially women of color, to seek and raise capital). As more women participate in venture investing and more LPs and corporations back them, this trend will increase funding for women-led startups and set the stage for success for all stakeholders. Masu. Many women-led funds recognize this importance, so it’s no wonder that OpenseedVC is active in supporting startups led by women operators.

“While there are few women-led funds globally, we have a specific perspective on what a diverse portfolio should look like. We focus on diversification across geography, industry and gender. “We’re putting it there,” Lotil said. “There is a lot of work being done around diversity and as a fund we are applying a gender perspective to our portfolio strategy. We aim for a truly diverse portfolio and the balance of our co-founding team is over 50. /50,” she said.