Despite a global downturn in funding, Partech Africa, a leading venture capital fund, has successfully closed its second Africa-focused fund, "Partech II," at a record $300 million. This fund, which is double the size of Partech's inaugural fund of $143 million in 2018, is set to invest in a diverse range of African startups. The fund will target seed to Series C rounds, with investments ranging from $1 million to $15 million.

This achievement comes amidst a 36% drop in funding for Africa last year, with over half of investors retreating from African startups. Partech's successful close, a year after its initial close at $263 million, was made possible by contributions from US and Middle East pension funds, sovereign funds, and new strategic investors, including Africa Reinsurance Corporation and Dubai Future District Fund (DFDF).

Cyril Collon, General Partner at Partech, expressed gratitude for the continued support from investors, many of whom reinvested and even doubled their commitment. He also welcomed the new strategic investors from the US, the Middle East, and Africa, some of whom are making their first foray into African tech.

Partech, which was among the most active venture stage investors in Africa last year, has already invested in three startups with its second fund, including South African payment startup Revio, and two undisclosed startups in Egypt and Senegal.

As part of its expansion strategy, Partech is set to open a new office in Lagos, which houses a third of its portfolio. "With our presence in Dakar, Nairobi, Dubai and now Lagos, we are strengthening our support on the ground for entrepreneurs," said Tidjane Deme, general partner at Partech.

Despite the two-year decline in funding, African startups managed to raise $3.2 billion in 2023.