Navigating the Venture Landscape: Insights from Oui Capital’s Olu Oyinsan

Olu Oyinsan, general partner at Africa-focused venture capital firm Oui Capital, recently shared valuable perspectives on the current state of African venture capital. While the firm celebrated returning its $4 million debut fund in full—largely thanks to a successful early investment in Moniepoint—Oyinsan emphasized that this success extends beyond just one exit.

A Balanced Portfolio Approach

Oui Capital’s Fund I demonstrated resilience with returns from multiple investments, including AMOpportunities and several others across digital commerce, enterprise software, fintech, and human capital. Even without the Moniepoint windfall (which generated a 53x return), the fund would have returned twice its initial size.

This balanced approach reflects Oui Capital’s deliberate strategy of backing companies with strong fundamentals rather than relying on single outlier exits—a common concern in venture investing.

Evolving Investment Thesis

With Fund II, launched in 2022, Oui Capital refined its investment focus. Check sizes now range up to $750,000 (averaging $400,000-$500,000), and ownership targets have increased to secure more meaningful positions in portfolio companies.

The firm has also reduced the number of investments—from around 20 in Fund I to an expected 10-11 in Fund II—prioritizing deeper engagement with fewer high-conviction bets.

Addressing Market Gaps

Oyinsan believes African seed funds should ideally be capped at $50 million, arguing that larger funds often spread investments too thinly. He also noted a shift in what the firm looks for: “SaaS companies that AI prompts can build” are now generally passed over, as they represent less differentiated opportunities.

The Path Forward

Oui Capital’s experience highlights both the promise and challenges of African venture capital—the potential for exceptional returns alongside the need for disciplined investment strategies and a focus on sustainable growth. As Oyinsan suggests, addressing these structural issues is critical to ensuring continued investor confidence in the region’s startup ecosystem.