Uncap’s launch of the €30 million Unconventional Capital fund is a game-changer for early-stage African SMEs, particularly because it provides a non-dilutive, revenue-based financing alternative. This flexible model allows entrepreneurs to secure funding without giving up equity or ownership, which has been a common challenge with traditional venture capital. SMEs in high-impact sectors, especially in agriculture and digital solutions, stand to benefit greatly from this fund.
The collaboration with organizations like SAIS and O-Farms highlights Unconventional Capital’s focus on innovation and sustainability, aligning with broader goals for economic development in Africa. Furthermore, the backing from global institutions such as the Bill and Melinda Gates Foundation and the Bayer Foundation reflects confidence in Uncap’s unique approach to solving Africa’s funding gaps.
The separation of Uncap’s financial operations from its technology platform, Level, will allow the company to focus more on financing solutions while Level simplifies investment management for funders. With Esther Ndeti and Franziska Reh at the helm as managing partners, the fund is set to provide inclusive and scalable funding options for businesses in underserved regions, driving sustainable growth and closing critical financing gaps across the continent.
Given that African SMEs make up 90% of businesses but often struggle to access necessary funding, Unconventional Capital’s approach comes at an opportune time. It offers the potential to significantly improve the scalability and resilience of these enterprises, contributing to long-term economic empowerment across Africa.
