Orios Capital, an emerging patient capital firm established to co-invest into scalable and impact-based startups in Africa, has announced plans to raise more than one million dollars.
The move is in line with the company’s vision to become the name behind a global business giant from Africa. It also forms part of its strategy to engineer funding for startups, helping bridge the funding gap for startups in Ghana and Africa.
Orios, in a statement signed by co-founder and CEO John Armah, said it is expecting to raise its seed capital from limited partners, donors and private equity firms.
According to a report entitled ‘Accelerating Entrepreneurship in Africa’, compiled in 2013 by the Omidyar Network, the philanthropic foundation established by Pierre Omidyar — the founder of e-Bay, in partnership with global strategy consulting film, Monitor Group – “venture capital in Africa is still an emergent phenomenon.
This is because entrepreneurs are forced to pursue bank loans which simply are not tailored for startups. Banks see startup investments as high risk, low reward and like to quote statistics that show nine out of ten startups fail within the first five years of operation”.
Three years on, Orios Capital said the situation remains the same and Orios Capital is prepared to change this trend through its innovative business model, underpinned by the goal of social change and job creation as solutions to reducing Global Poverty.
In a statement, the Board Chairman of Orios Capital and past Chief Executive of Ghana’s Volta River Authority, Mr. Kweku Awotwi, said: “Our work is pivotal in redefining solutions to poverty reduction in Africa. We want to be the Fund that provides the Patient Capital needed to transform such businesses to achieve that mandate. We strongly believe that our strong Governance Structure and cumulative experience will serve as a differentiating factor in disrupting the private equity market for Startups”.
Some of the key sectors that Orios is investing in include healthcare, technology, services, agribusiness, clean water, formal housing and quality education. Orios Capital said it is set to formally launch its operations later this year as it continues its own fundraising to seed Ghanaian startups when it announces its first call for proposals.
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