Saviu Ventures, a VC firm targeting startups in Francophone Africa, has made an initial close of €12 million for its second fund with the backing of private investors, including French and Kenyan family offices.

The VC firm aims to close the fund at between €30 million and €50 million to primarily invest in startups within Francophone Africa. It is said to be in talks with other stakeholders including investors that are institutional strike the target.

Founded by Benoit Delestre and Samuel Touboul, Saviu Ventures is mixed up in Francophone Africa startup ecosystem since 2018, whenever it started deploying its very first €10 million investment.

The VC company invests in seed phase startups, and it is industry agnostic, but, aided by the fund that is current it is keen on fintechs, health-techs and climate-techs, while slowing down on e-mobility, e-commerce and e-logistics.

“We will follow the strategy that is same of very first investment, where our almost all our financial investment is certainly going to startups into the Francophone area, but we nevertheless keep carefully the possibility to spend money on East, Southern and North Africa startups which are thinking about expanding to Francophone Africa,” Delestre informed For Millionaires.

Saviu intends to invest between €500,000 and €3 million in 15 to 20 post-revenue startups having its 2nd investment. Delestre and Touboul stated the VC company targets “sustainable organizations” and stretches company development help to those companies besides the investment that is financial. The fund that is second currently supported Waspito, a Cameroonian health-tech; Rubyx, a Senegalese digital financing SaaS provider; and Workpay, a HR-payroll supplier.

“We are seeking renewable companies. We don’t want to a target unicorns because we’re perhaps not thinking about companies or company designs that insist upon burning up money. Our belief is within encouraging skilled business owners creating renewable companies,” said Touboul.

Saviu’s very first investment spent between €250,000 and €500,000 in 12 startups, 82% of these through the Francophone area. Its profile organizations consist of Anka (Afrikrea), an platform that is e-commerce Julaya, an Ivorian neobank; Zanifu, a Kenyan digital lender; Lapaire, an eye-wear retailer with operations in Ivory Coast, Mali, Burkina Faso, Benin and Togo; and Paps, a Senegalese e-logistics startup.

Saviu is among the first VC firms that are specifically eyeing the Francophone region, an ecosystem that continues to attract VCs because of less competition, a massive market opportunity, and high-quality and better priced deals, in comparison to the more mature Anglophone regions.

Outside the big four (Egypt, Kenya, Nigeria, and South Africa), the Francophone region continues to be the next investment destination for VCs. According to the 2022 Partech report, the region accounted for 49% and 38% of the rest of Africa deals and funding, respectively, last year. Notably, Equity funding into the region remained nearly flat year that is last after developing 2% to $527 million from 2021 whenever it recorded a mammoth 695% year-on-year development.

“The ecosystem in francophone Africa is currently even more evolved than it had been in 2018, whenever there have been less creators with no incubators. it is nevertheless really definately not everything you see in Kenya or Southern Africa however it is better today,” said Delestre.