Chanzo, a Swahili word meaning “beginning” or “early stage,” perfectly embodies the mission of Chanzo Capital: transforming nascent business ideas into commercially viable ventures.
The firm’s journey began with Angel Fair Africa (AFA) in 2013, a precursor event that laid the foundation for Chanzo Capital.
The inaugural AFA, held in Johannesburg, South Africa, saw 24 startups pitch to 68 investors, resulting in three deals being sealed during the event. This success prompted the Africa Venture Capital Association (AVCA) to incorporate AFA into its 2014 Lagos summit, where several AVCA delegates personally invested in participating startups.
It was during this event that the idea for Chanzo Capital materialised—a dedicated vehicle to channel third-party capital into African startups. Chanzo Capital officially emerged as an Africa-focused venture capital firm, targeting tech-driven founders leveraging mobile and web technologies to address critical community challenges.
The firm’s approach began with “mentor capital,” a model where Chanzo’s founder personally mentored entrepreneurs before providing seed funding. The goal was to build trust and conviction in the founders’ capabilities, laying the groundwork for long-term partnerships.
“Trust takes time to build, and conviction takes even longer,” reflects the founder. Mentoring served as the bridge to conviction, helping founders refine their visions and mitigate execution risks.
Early-stage investing is inherently risky, with industry data showing a failure rate of 90%. Inspired by his mentor Esther Dyson, the founder resolved to reduce this statistic by developing a proprietary formula to calculate execution risks. This approach has yielded impressive results: of the first 16 startups Chanzo invested in, 11 remain operational, and five are profitable.
The firm’s investment philosophy emphasises profitability over growth at all costs, guiding founders to focus on sustainable unit economics and achieving product-market fit (PMF) through iterative feedback loops during product development.
Chanzo Capital’s investment model centres around the 3 Ts:
- Team – The quality and cohesion of the founding team.
- Timing—assessing market readiness and trends.
- Tenacity – The resilience to navigate challenges and capitalise on emerging opportunities.
These elements ensure startups are equipped to ride market waves when the timing is right, backed by a robust team.
Over the past decade, Chanzo has invested in 35 startups across Africa. From 2020 to 2024, the firm added 24 startups to its portfolio, expanding into Kenya, Ivory Coast, Nigeria, Ghana, and South Africa (the KINGS countries) and later into Uganda, Senegal, Tanzania, Zambia, and Mozambique.
Operating from offices in Accra (Ghana), Nairobi (Kenya), and Johannesburg (South Africa) with funds domiciled in Mauritius, Chanzo’s lean team of six collaborates with a network of 42 ex-founders, venture builders, and ecosystem players.
To mark its 10th anniversary, Chanzo hosted an intimate dinner in Johannesburg with team members, advisors, and partners, celebrating a decade of transformative impact on the African entrepreneurial ecosystem. With 35 portfolio companies and a growing regional footprint, the firm is set to expand its influence across the continent.
As Chanzo Capital charts the next decade, its commitment to nurturing African innovation, reducing startup failure rates, and building sustainable ventures remains unwavering. The firm continues to build trust, calculate execution risks, and invest in founders shaping Africa’s digital economy—one startup at a time.
