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Openseed

<a href="https://www.openseed.vc/" target="_blank" rel="noopener">OpenseedVC</a>, a venture capital company focused on backing early-stage startups in Africa and Europe has launched its angel-style early-stage fund. The company also announced that it has closed a $10 million funding upon its launch, described as a first close. 
General partner at OpenseedVC, Maria Rotilu said the fundraising will go well into the millions and that the fundraising is still in progress even though they did not specify how much they are looking to raise. She however disclosed that the VC hopes to reach the final close within a year. 
The VC’s focus is to provide a new kind of venture funding for early-stage startups which would provide financing as well as something else they need even more importantly, guidance from successful founders and startup operators. 
<h4 id="openseedvc-vision-to-invest-and-mentor-early-stage-startups" class="wp-block-heading">OpenseedVC vision to invest and mentor early-stage startups</h4> 
London-based OpenseedVC was founded by Maria Rotilu with a vision to invest in early-stage inexperienced operators who are looking to launch their technology companies in solving real problems. The VC said it would provide these founders with not only capital and conviction at the earliest stages but also the support of a community of seasoned operators, which currently comprises more than 50 successful operators. 
“If you’re supporting operators that have identified a problem and are making the leap into building their technology, you’ve likely recognized a common challenge: the need for capital and guidance from other experienced individuals. To address this, we focus on enhancing the operator network in four key areas,” Founder, Rotilu said in a conversation with TechCrunch.&nbsp; 
She said in the early stages, expertise in software engineering is crucial. These startup founders will need someone who’s recruited technical talent, built teams and understands infrastructure design, offering invaluable firsthand experience. 
“If that’s the common thread, I would say firsthand experience is what we optimize for across software engineering, product, go-to-market and people and talent,” she said. 
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She also noted that most of the individuals in OpenseedVC’s operator network are people she has either worked with or received referrals for. Some are also limited partners in the fund, though they don’t earn carry now. Rotilu also mentioned that other LPs include founders and professionals from traditional and tech businesses and high-net-worth individuals across Africa, Europe, and the US. 
The VC said it is looking to back at least 60 startups at the earliest stage of their existence over the next five years. It also said it will provide up to $150,000 to these startups with a bias for startups focusing on the future of commerce (including B2B software, AI, and fintech), the future of work (productivity), and digital health. The early-stage fund says it operates an open application process, allowing founders to apply without needing an introduction. 
“We look at the earliest stages; that’s our sweet spot. Openseed is keen on making pre-seed investments, but the early stage of pre-seed because the later stage of pre-seed is more where you find the traditional VCs. We tend to move independently and quickly — and don’t necessarily need a founder to get a lead investor or anything like that before we invest,” the founder said. 
So far, OpenseedVC has made two investments: one in a stealth U.K.-based AI-enabled supplier dispute resolution software and another in Intron, a speech-to-text transcription model for underserved accents, starting with Africa.&nbsp; 
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Maria Rotilu added that the VC fund is interested in specific founder profiles within its broader operator-focused lens: domain experts (operators at high-growth tech companies, including first-time founders) and second-time founders who have built and exited a startup. 
“We chose Africa and Europe to apply our thesis to work in these regions. Our thesis is that by backing experienced operators early in their journey with the right capital and support from peer operators, you can build a diversified portfolio that generates incredible returns for investors and provides crucial support for ambitious operators when they need it most,” she said. 
Being a woman-led fund itself, there will be a strong focus on women-led startups with the ultimate target being a 50/50 gender balance. This naturally flows with the continuous rise of female-led funds which is believed would ultimately impact the growth of women-led startups. 
“There are very few female-led funds globally, and we have a specific perspective on what a diversified portfolio should look like. We focus on diversification across geography, industry, and gender,” Rotilu remarked. “A lot of work is being done around diversity, and as a fund, we apply a gender lens to our portfolio strategy. We aim for a truly diverse portfolio, striving for a 50/50 balance in co-founding teams,” she said. 
See also: <a href="https://technext24.com/2024/05/13/africa-startup-funding-drops-47/#google_vignette">Africa startup funding drops 47%</a>

Africa-focused OpenseedVC debuts with $10 million fund for early-stage startups

Technext.ng

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