Marlon Nichols recently spoke at AfroTech about the significance of establishing relationships in new markets. He emphasized the importance of connecting with key players and understanding the needs and trends in that market. Nichols, the co-founder of MaC Venture Capital, has invested over $20 million in 10 African companies and raised a $150 million Fund III.
His initial investment in Africa dates back to 2015, before it became a popular trend. This early investment helped him establish a strong presence on the continent. Despite a slight decrease in funding for African startups last year, there is still a growing interest in sectors like health tech and fintech due to infrastructure and funding challenges in these areas.
MaC Ventures primarily focuses its investments in Nigeria and Kenya, leveraging Nichols’ extensive network to identify promising opportunities. Building relationships with trusted advisors and foundations has been crucial in expanding their investment portfolio. Nichols highlighted the importance of angel investing as another entry point into the market.
While overall funding may have decreased, there is optimism as investors are exploring opportunities beyond the major African markets. There has been an increase in investments in Francophone Africa, indicating a broader interest in the region. Nichols believes that establishing strong trading relationships with African countries is essential for future growth.
The emergence of more early-stage investors in Africa is a positive sign, but there is a growing need for later-stage firms to enter the market. Nichols stressed the importance of investing in companies from Series A to C to support their growth. By laying the groundwork now, he believes that fruitful trading relationships with African countries can be established in the future.
