A Continent’s Worth of Experience

The African venture capital landscape has seen its share of ups and downs, particularly in recent years. Yet, as Eloho Omame, partner at TLcom Capital, points out, this period represents a crucial compounding phase for the ecosystem.

TLcom has deployed roughly $100 million across two funds, actively investing in early-stage companies like Pula (agricultural insurance) and FairMoney (digital lending). This experience provides valuable insights into what truly drives success on the continent.

The Evolution of Assumptions

Omame argues that a decade ago, venture investors made certain assumptions about market readiness—access to talent, capital efficiency, and exit pathways. While these challenges haven’t entirely disappeared, they are now better understood through practical experience.

The “school fees” paid by the ecosystem have clarified which models work and what pitfalls to avoid. For example, early enthusiasm for partnerships with large telcos has given way to a more nuanced understanding of how to effectively leverage distribution channels.

Assessing New Investments

This accumulated knowledge informs TLcom’s investment approach in several key ways:

• Talent assessment: They now seek operators who have experience scaling businesses beyond the initial stages
• Market validation: Rather than relying on theoretical potential, they prioritize companies with demonstrated traction and revenue generation
• Exit strategy: Before investing, TLcom identifies likely acquirers for portfolio companies—a critical factor in ensuring returns

Daisy Liech, TLcom’s director of portfolio and strategy, adds that the firm provides ongoing support beyond capital through mentorship, operational guidance, and access to their network.