Despite the FTX Chaos, VC Money Is Still Pouring In

Modus’ Africa-focused $75 million new fund is launching at a time when the crypto market is in turmoil amid the FTX chaos.
Image source:

Quick take:

  • Modus Capital has launched a $75 million fund to invest in African startups focused on AI and blockchain technology.
  • Vianney Mathonnet and Andre Jr. Ayotte, both veterans of the African startup ecosystem will lead Modus Africa.
  • The fund targets Africa’s fast-growing tech-savvy population with the potential to onboard 200 million users onto the blockchain.

Modus Capital has launched a new $75 million Africa-focused fund to invest in Ai and blockchain technology startups. The new venture fund, Modus Africa will be led by Vianney Mathonnet and Andre Jr. Ayotte, both veterans of the African startup ecosystem.

The announcement also comes at a time when the crypto industry is in turmoil amid the FTX chaos.

Modus’ new fund shows that venture capital firms are optimistic about the future of the industry despite recent drawbacks.

In an exclusive email comment sent to NFTgators, Vianney Mathonnet, General Partner at Modus Africa said: “Any bankruptcy of a large crypto/web3 player negatively affects the overall funding in blockchain-related startups. This confirms that building with compliance, transparency and security are foundational pillars for long-term success.”

The new spinoff fund is part of Modus’ continued expansion in the MENA region that has seen it set up subsidiaries in Abu Dhabi, Cairo and Riyadh. The new fund will give African startups access to Modus Capital’s portfolio companies and the MENA region.

The fund targets startup investing in artificial intelligence and blockchain, two of the most exciting segments of the technology sector, but rather projects that looking to make real change through automation.

However, the decision on which projects to fund will not be driven by the hype that has seen web3 funds jump on projects targeting trending segments of the crypto sector. 

“We aim to fund startups which demonstrate that AI and blockchain technologies are actually adding value to their business model, either by automatization, creating trust between various parties, reducing transaction fees, and accelerating inclusion. To summarize we focus on impact rather than on ‘hype’,” said Mathonnet.

Modus thinks the time is now to tap into Africa’s fast-growing tech-savvy population. The venture firm predicts that Africa could onboard 200 million new blockchain users within the next four years.

The new fund will close in the first quarter of 2023 and is targeting 45 startups at the Seed+ stage with a follow-on investment allocation. The company thinks that startups leveraging AI and blockchain will usher in Africa’s fourth industrial revolution, sustainable development and strong financial returns.

The fund is also looking at startups that are spearheading the campaign to bridge web2 with web3. Web3 is a next-gen internet that prioritises decentralisation, user privacy and community ownership on the web.

In a statement announcing the fund, Kareem Elsirafy, Managing Partner at Modus commented: “Modus is proud to be launching an Africa-MENA investment corridor to continue supporting and investing in emerging innovation ecosystems. The Modus platform is uniquely positioned to deliver impact and value to African communities through operational, institutional, and financial capital. We’re excited to have Vianney and Andre leading the way on this journey.”


Sign up to the world’s biggest crypto exchange Binance to buy and sell cryptocurrencies.

Stay up to date:

Previous Post

Cristiano Ronaldo Launches CR7 NFTs with Binance

Next Post

UGC Platform Yahaha Bags $40 Million in Series A+ Funding For its Metaverse Creation Tool

Related Posts