Top African start-ups in the logistics and supply chain sector are first in line to benefit from a new corporate venture capital (CVC).

Top African start-ups in the logistics and supply chain sector are first in line to benefit from a new corporate venture capital (CVC) fund organised by y Newton Partners and backed by major international logistics player, Imperial.

Those behind the fund have researched the viability of several of these start-ups and are confident that the resource will add substantial value.

Managing partner Llew Claasen said they also prepared an investment thesis before looking for target investments.

"Since we're investing early at Seed and Series A, I hope that the best start-ups from all over Africa addressing pains in logistics and supply chain management will look at us as a first choice partner that is able to provide early capital, market knowledge, and in certain cases, market access," said Claasen. "We don't need much more than an MVP and early market validation to make an investment decision and we're willing to write smaller first checks as low as US$250k."

The CVC fund has an initial investment of US$20-million according to the partnership announcement “and will seek to identify, invest in, and nurture disruptive, innovative technology startups that present high-growth potential in the global supply chain and logistics technology stack.”

The expectation is that it will add to this year’s total funding - WeeTracker’s Venture Investments Report 2018 put investment across 458 deals in Africa at US$725.6-million - a 300% increase over 2017,whileBriter Bridges put the figure at US$1.27-billion 2019.

Claasen noted that the CVC fund is not restricted to start-ups deploying any particular emerging technologies and business models, but rather any start-up that's into freight logistics -not human mobility - and supply chain management using emerging technologies and/or a disruptive business models.

Specifically, it will consider that which is designed to support Imperial's strategic investment in key areas to disrupt its business in the next five to ten years.

"Additionally, we can significantly de-risk the investments and accelerate the growth of these start-ups when we're able to integrate these start-ups into Imperial's local supply chains,” he added.

Newtown Partners will adopt a hands-on approach to work with portfolio start-up companies that the fund invests in, aside from those under Imperial.

For Mohammed Akoojee, Group CEO of Imperial, backing the fund is a way to take their business to the next level considering that they already have the scale and the assets.