The Botswana Tech Fund (BTF) has reached a first close of £5 million (US$6.7 million), marking the beginning of a long-term effort to support early-stage and growth-stage technology companies. The fund aims to help bridge the digital gap between Southern Africa and some of Africa’s more established technology ecosystems by investing in businesses developing solutions for local markets.
The first phase of the fund will support entrepreneurs through a pre-seed accelerator programme while also investing in more established companies that are ready to scale. The initiative is expected to strengthen the region’s startup ecosystem, improve access to capital for founders and accelerate the digitisation of micro, small and medium-sized enterprises (MSMEs).
Managing Partner Martin Davis described the first close as an important milestone for both the fund and the region’s technology ecosystem.
“I am delighted to announce the first close of Botswana Tech Fund 1. This is an exciting step in helping to drive digitisation in Sub-Saharan Africa,” he said.
The fund is targeting a total size of £50 million and plans to expand its investment activity as it secures additional commitments from investors.
Building a stronger technology ecosystem
The Botswana Tech Fund is domiciled in Guernsey and is anchored by Pula Investments, the family office of British billionaire Stephen Lansdown, co-founder of Hargreaves Lansdown, one of the United Kingdom’s largest wealth management platforms.
Venture capital firm Launch Africa Ventures has been appointed investment adviser for the first phase of the fund as part of its managed accounts strategy, advising on third-party investment mandates. Since 2020, Launch Africa has invested US$65 million across two funds and backed more than 170 African startups.
Davis acknowledged the organisations and individuals that helped establish the fund, thanking HFL (Guernsey), Thema, Launch Africa Ventures, regional founders and ecosystem players who supported the initiative during its early stages.
“I am hugely grateful to Stephen Lansdown CBE and PULA Investments Ltd for believing in our vision,” he said.
The fund combines an accelerator programme with a growth investment strategy. Through the accelerator, early-stage startups will receive investments ranging from £25,000 to £100,000 to help them develop their businesses. Larger investments of between £500,000 and £2 million will be made into revenue-generating companies from seed stage through to Series C, including selected secondary share purchases.
During the first phase, approximately £1 million will be allocated to the accelerator programme, while the remaining capital will be invested across two to four growth-stage businesses.
While securing the first close represents an important fundraising milestone, Davis said the focus has now shifted to supporting entrepreneurs and deploying capital. “Now the work starts,” he said.
Launch Africa co-founder Zachariah George said Southern Africa remains one of the continent’s most overlooked venture capital markets despite its significant potential.
“The founders building in Southern Africa’s frontier markets are operating in one of the most underleveraged digitisation opportunities on the continent. They have been doing it largely without institutional backing,” he said.
The fund is led by Davis, the former Chief Executive Officer of FTSE 250-listed Molten Ventures, and General Partner Florence Bavanandan, Head of Platform and Operations at Launch Africa Ventures. Before joining the Botswana Tech Fund, Davis oversaw the growth of Molten Ventures’ net asset value to approximately £2 billion, bringing extensive institutional investment experience to the new venture.
Closing the funding gap in Southern Africa
The Botswana Tech Fund has been launched at a time when most venture capital in Africa continues to flow into a handful of established markets. While South Africa attracts the majority of investment in Southern Africa, countries such as Botswana, Zimbabwe, Zambia and Mozambique continue to receive only a small share of venture funding despite growing entrepreneurial activity.
By focusing specifically on these underserved markets, the fund aims to improve access to finance for startups with strong growth potential but limited funding opportunities.
Botswana provides a strong foundation for this strategy. The country has internet penetration estimated at around 80 percent, one of the highest rates in Sub-Saharan Africa. It also ranks among Africa’s strongest performers on governance indicators and maintains an investment-grade sovereign credit rating.
To strengthen support for entrepreneurs beyond funding, the Botswana Tech Fund has partnered with the Botswana Innovation Hub in Gaborone. The partnership will provide portfolio companies with access to office space, innovation programmes, government support initiatives and valuable business networks.
The fund also operates under a managed account structure, allowing Launch Africa Ventures to extend its investment expertise and operational infrastructure to third-party capital rather than pooling those assets into its own investment funds. This model gives investors access to Launch Africa’s experience while providing greater flexibility in managing capital.
Although the £5 million first close represents only part of the fund’s £50 million target, it provides an important foundation for future fundraising. The current phase will allow the Botswana Tech Fund to build an investment track record that could attract development finance institutions, pension funds and other institutional investors while expanding support for entrepreneurs across Southern Africa.
For Davis, however, the fund’s success will ultimately be measured by the businesses it helps build and the impact those companies have across the region. “There is a huge opportunity to close the digital gap between our chosen markets and those such as South Africa, Nigeria and Kenya and we are delighted to be able to support the most ambitious founders to make that happen,” he said.
