African fintech-focused VC first circle capital raises $6M from IFC for early-stage investment fund

World Bank Group investment supports pre-seed and seed funding for financial services startups across eight African markets, with $30M total fund target

First Circle Capital, an Africa-based venture capital firm specializing in early-stage fintech investments, has secured $6 million in funding from the International Finance Corporation, a member of the World Bank Group.

Operating from offices in Uganda and Casablanca, First Circle Capital focuses on pre-seed and seed-stage companies addressing fundamental challenges in financial services across the African continent. The firm employs a thematic investment strategy and leverages experience building and backing fintech ventures as it raises its current fund targeting $30 million in total commitments.

The IFC investment provides capital alongside operational guidance and business development support designed to prepare portfolio companies for Series A fundraising rounds. First Circle Capital's investment approach centers on concentrated portfolios of high-potential startups rather than broad diversification across numerous companies.

The fund has deployed capital into 15 companies across eight African countries to date. Portfolio composition includes 30 percent of companies with women in leadership or co-founder roles, while 50 percent of investments operate across multiple countries. First Circle Capital targets a final portfolio of 24 companies, concentrating follow-on capital on highest-conviction investments demonstrating strong traction.

Beyond the IFC commitment, First Circle Capital has secured $2 million from the Women Entrepreneurs Finance Initiative (We-Fi), with an additional $3 million approved from DGGF. The fund has also attracted commitments from FSD Africa, MSMEDA, Axian Group, and individual investors including prominent family offices and technology entrepreneurs such as Jens Hilgers, Tim Schumacher, Peter Steinberger, and Steve Anavi.

The IFC investment reflects growing institutional recognition of Africa's fintech opportunity and the need for specialized early-stage capital. Traditional venture capital has historically underserved African startups at pre-seed and seed stages, creating gaps in funding availability precisely when companies require capital to validate business models and achieve initial scale.

First Circle Capital's concentrated portfolio strategy diverges from conventional venture approaches that spread capital across larger numbers of companies. By limiting portfolio size to 24 investments and reserving capital for follow-on rounds, the firm maintains ability to support breakout companies through subsequent growth stages while avoiding over-diversification that can dilute returns and attention.

The fund's geographic coverage spans multiple African markets, addressing fragmentation that often constrains fintech growth on the continent. Companies operating across borders face regulatory complexity but access larger addressable markets, creating potential for stronger returns when successful.

Women's participation in First Circle Capital's portfolio, both as founders and investors through We-Fi, aligns with broader efforts to address gender gaps in African entrepreneurship and venture capital. Female founders have historically received disproportionately low shares of venture funding despite demonstrating comparable or superior performance metrics.