Japanese VCs Launch $20M Fund for African and MENA Startups

Japanese venture capital (VC) firms, UNCOVERED FUND (Uncovered) and Monex Ventures, have launched a new $20 million fund targeting early-stage startups across African and North Africa (MENA). The fund, called the Uncovered Monex Africa Investment Partnership, is aimed at accelerating innovation in key sectors including fintech, mobility, logistics, agri-tech, and sustainability.

Japanese VCs Target Growth in African and MENA Tech Ecosystem

Africa’s startup ecosystem continues to grow despite limited access to funding and global macroeconomic headwinds. African startups have raised $1.4 billion in funding in the first half of the year (H1), a significant improvement in the $800 million raised during the same period in 2024. Although this is an improvement, it’s still short of the highs reached before the pandemic. 

Japan’s interest in Africa’s tech ecosystem is not new. At the Tokyo International Conference on African Development (TICAD) has been a platform where Japanese private and public sector stakeholders have consistently expressed commitment to Africa’s industrialisation and digital transformation. This new fund reflects a shift from policy talk to direct investment.

South African Startups: Challenges of Going Global

Explore key hurdles SA startups face in global expansion, from funding to regulations, and discover ways to overcome them for international growth.

Startup.AfricaLungile Msomi

Meet the VCs Behind the Fund

UNCOVERED FUND

Founded by Takuma Terakubo, Uncovered fund is a VC firm focused on early- and growth stage investments in emerging markets. The firm typically invests in seed to Series A+ rounds, offering: 

• Seed funding of $100K - $300K
• Follow-on investments ranging from $500K - $2 million

In Africa, the firm has established a presence in Nigeria, Egypt, Kenya and South Africa, with investments extending to countries such as Cameroon, Mali, Senegal and Tanzania. Notable startups in its portfolio include: 

• ARC Ride (Kenya)
• Trella (Egypt)
• Yoco (South Africa)
• Send (Nigeria)

Uncovered also long-term business development support and enables collaboration with Japanese corporates for market expansion.

Monex Ventures

Monex Ventures is the corporate VC arm of Monex Group, a Tokyo Stock Exchange-listed fintech conglomerate with global operations. The company specialises in seed and early-stage investments in Japan and overseas, with a strong focus on financial services, digital assets, and blockchain technology.

Monex brings extensive fintech expertise and facilitates access to Japanese companies keen to explore opportunities in African and MENA markets. 

The Four Pillars of the Fund

The Uncovered Monex Africa Investment Partnership will focus on five high-impact sectors:

• Mobile payments
• Mirco-lending platforms
• Digital retails
• Logistics
• Agri-tech

Each of these sectors addresses a pressing need in Africa and MENA sectors. For instance, mobile payment solutions are key to driving financial inclusion in countries like Kenya and Ghana. Micro-lending platforms are enabling small and medium-sized enterprises (SMEs) to access credit. Logistics and mobility sectors are ripe for transformation, while agri-tech continues to emerge as a great source for food security and job creation.

Investment Strategy Beyond Funding

The fund is expected to invest up to $2 million per startup, with flexibility to deploy smaller seed capital or participate in follow-on rounds. While the fund will mainly focus on pre-seed to Series A ventures, its scope includes post-investment support aimed at accelerating operational scale and market entry.

Strategic collaboration is at the core of this investment vehicle. Selected startups will have the opportunity to explore potential partnerships with Japanese corporations..

Additionally, the fund will help African startups localise innovations for broader markets or adopt efficiency models drawn from the experience of Japanese entrepreneurs in scaling operations.

What This Fund Means for African Startups and Investors

For African founders, this fund represents a potential gateway to one of the world’s most tech-savvy and capital-rich markets. It also unlocks opportunities for expansion across broader Asian markets.

For local investors, this partnership could open the doors to more co-investment opportunities and follow-on capital that helps de-risk portfolios. It diversifies the investment landscape, which has traditionally been dominated by American and European venture capital.

Additionally, African investors and founders could benefit from knowledge sharing, drawing on Japan’s manufacturing principles, and supply chain optimisation.

A Gateway to Cross-Continental Innovation

The Uncovered Monex Africa Investment Partnership is still early in deployment, but its ambitions are clear: to help build scalable, impactful, and globally competitive startups from Africa and the Middle East.

As the continent’s tech ecosystem matures, capital alone won’t be enough. African founders are looking for partners who can open doors, offer insight, and help navigate global scale. With this fund, Japanese VCs may well become some of the most interesting new players in African venture capital.