Two Japanese venture capital firms have launched a ¥3 billion ($20 million) fund to back early-stage African and Middle Eastern startups, signaling Japan’s strategic shift from aid to investment in the continent’s tech ecosystem.
Uncovered Fund and Monex Ventures created the Uncovered Monex Africa Investment Partnership to invest up to $2 million per startup in fintech, logistics, mobility, and sustainability sectors. Beyond capital, the fund aims to connect African startups with Japanese markets and corporate partnerships.
Growing Japanese Interest
This launch joins a broader trend of Japanese investment in African tech. Samurai Incubate Africa has backed over 20 startups since 2018, while Verod-Kepple Africa Ventures closed a $60 million fund in 2024 with backing from major Japanese institutions including SBI Holdings and Toyota Tsusho. Sony Ventures also launched a $10 million entertainment fund targeting African gaming and media startups.
The African Opportunity
Africa’s appeal lies in its demographic advantage—a population expected to reach 2.5 billion by 2050—and potential for technological leapfrogging. The continent’s mobile-first approach creates opportunities in digital finance, sustainable agriculture, and electric mobility, areas where Japanese firms already possess expertise.
As Kohei Muto of Double Feather Partners notes, African markets could bypass traditional infrastructure in sectors like mobility, creating space for innovations like electric vehicles and battery-as-a-service platforms.
The fund represents Japan’s evolution from traditional aid relationships toward mutually beneficial business partnerships, positioning both regions for strategic collaboration in global innovation.
