Renew Capital, a venture capital firm co-founded by Matt and Laura Davis, is expanding its footprint in Africa after stepping away from private equity investments in Ethiopia. The firm, which initially operated as a private equity company, spent a decade focusing on export-driven businesses in Ethiopia but encountered challenges that prompted a shift in strategy. Now, Renew Capital is focused on investing in asset-light, tech-enabled startups across the continent, with a particular emphasis on West Africa.
The firm’s expansion began with an investment in Affinity, a Ghanaian digital bank, marking its entry into West Africa. Renew Capital plans to invest between $50,000 and $500,000 in more than 40 startups within the next year. “We believe that the [Affinity] deal is going to open the gateway for us in West Africa,” said Chudi Ofili, Renew’s investment manager for West Africa. The firm’s investment strategy is sector-agnostic but centered around highly scalable businesses disrupting traditional industries by eliminating friction and addressing the needs of Africa’s enormous population.
Renew Capital currently operates two funds: a $6 million angel syndicate and a $15 million follow-on fund. The $6 million fund supports an accelerator program designed to help startups through management training, digital marketing, and fundraising assistance. Startups that meet key performance indicators during the accelerator program may qualify for up to $4 million in follow-on funding from Renew’s $15 million fund. The firm plans to accept around 50 startups into the program but estimates that only 20% will receive follow-on investments, which average $1.5 million.
Matt Davis, Renew Capital’s CEO, explained that the firm’s investment thesis prioritizes exceptional founders. “Finding amazing founders comes first. We think the future is Africa, but the people who are going to build that future are trustworthy, focused, and disciplined founders,” Davis said. The firm values transparency, scalability, and coachability when evaluating startups and avoids founders who lack integrity.
In addition to funding startups, Renew Capital partners with foreign governments, such as Canada and the United States, to promote investment in Africa. As part of this initiative, the firm hosts foreign investors in Africa, showcasing opportunities on the continent. “We have this passion to change the way the world views Africa from a place of giving to a place of investing,” Davis said, highlighting Renew’s mission to reshape the global narrative surrounding African development.
