TLcom Capital, the venture capital powerhouse behind some of Africa’s most successful tech unicorns, has achieved a significant milestone by deploying 50% of its $5 million TIDE Africa Pre-Seed Investments (TAPSI) fund.
This achievement underscores the firm’s strategic commitment to nurturing Africa’s emerging tech ecosystem, particularly in the rapidly evolving Web3 and blockchain sectors.
The TAPSI Strategy: Building Tomorrow’s Crypto Leaders
Launched in 2022, the TAPSI fund represents more than just early-stage capital deployment, it’s a calculated approach to identifying and cultivating the next generation of African fintech and blockchain innovators. The fund’s recent participation in TurnStay’s $2 million seed round, a South African travel payment platform, marks another step in TLcom’s comprehensive investment philosophy that spans from traditional fintech to cutting-edge blockchain infrastructure.
“Building in Africa is not for the faint-hearted,” notes Eloho Omame, Partner at TLcom Capital. “However, the chances of success increase significantly when we support and grow alongside founders early on in their ventures.”
This philosophy has proven particularly relevant in the Web3 space, where African entrepreneurs are pioneering innovative solutions to continental payment challenges.
TLcom’s Blockchain Investment Portfolio: Leading the Web3 Charge
TLcom’s commitment to blockchain technology extends far beyond traditional investments. The firm led an $8.5 million seed round for Zone, Nigeria’s pioneering blockchain payment company, alongside Flourish Ventures, with participation from Digital Currency Group (DCG), VKAV (Verod-Kepple Africa Ventures), and Alter Global.
Zone operates as a regulated blockchain network that enables payments and acceptance of digital currencies, functioning as Africa’s first decentralized payment network that allows participating institutions to connect directly with each other and perform payment transactions without an intermediary while completely automating settlement, reconciliation, and dispute management.
This investment represents a significant vote of confidence in Africa’s blockchain infrastructure potential. Major Nigerian banks including Zenith Bank, First Bank, and UBA have joined Zone’s decentralized payment network, demonstrating institutional adoption of blockchain technology across the continent.
The Multi-Stage Investment Advantage in Crypto
TLcom’s multi-stage approach provides unique advantages in the volatile crypto and Web3 sectors. The firm’s strategy allows portfolio companies to mature through different funding stages while maintaining consistent support.
Nigerian edtech company Talstack exemplifies this approach, after receiving initial pre-seed funding from TAPSI, the company successfully secured subsequent seed funding from TLcom’s main $154 million TIDE Africa Fund II in 2024.
This progression model is particularly valuable in the blockchain space, where startups often require longer development cycles and regulatory navigation.
The structured support system enables crypto-focused companies like honeycoin which they recently invested in to build robust infrastructure before scaling operations across Africa’s diverse regulatory landscape.
Current TAPSI Portfolio: Diverse Tech Ecosystem with Fintech Focus
The current TAPSI portfolio demonstrates TLcom’s commitment to comprehensive African tech development:
TurnStay (South Africa) – Travel tech with payment integration
Talstack (Nigeria) – Edtech/HR tech solutions
Bright Financial (Sudan and Ethiopia) – Fintech innovation
Tradehub (Egypt) – B2B commerce platform
Agrails (Kenya) – Agricultural technology
Additionally, three investments have been made through First Check Africa, focusing on female-led startups, a crucial demographic in Africa’s emerging crypto ecosystem.
Africa’s Growing Web3 Market Opportunity
The African blockchain ecosystem is experiencing significant growth, with founders raising $122.6 million across 31 deals in 2024, representing more than 13.1% of all venture capital investments on the continent. This data highlights the increasing importance of blockchain technology in Africa’s broader tech investment landscape.
The continent’s unique challenges, including cross-border payment inefficiencies, financial inclusion gaps, and currency instability, create ideal conditions for blockchain solutions.
TLcom’s early positioning in this space through investments like Zone demonstrates the firm’s understanding of these market dynamics.
Digital Currency Group Partnership: Global Crypto Validation
The participation of Digital Currency Group (DCG) in Zone’s funding round alongside TLcom signals international recognition of Africa’s blockchain potential.
DCG, one of the world’s leading crypto investment firms, rarely participates in African deals, making this collaboration particularly significant for the continent’s Web3 credibility.
This partnership also provides African blockchain startups with access to global crypto networks, potentially accelerating adoption and international expansion opportunities.
TLcom plans to deploy the remaining 50% of its TAPSI fund through up to ten additional pre-seed investments before 2026. Given the firm’s demonstrated interest in blockchain infrastructure and the growing African crypto market, future investments will likely include more Web3-focused startups.
The firm’s $250 million in assets under management, combined with successful exits from companies like Andela and ongoing growth in portfolio companies like uLesson and FairMoney, positions TLcom as a key player in Africa’s evolving digital economy.
Investment Implications for African Crypto Startups
TLcom’s multi-stage approach offers several advantages for African crypto entrepreneurs:
Early Validation: TAPSI provides crucial pre-seed funding when crypto startups are proving technical feasibility
Growth Capital: Main fund participation ensures continued support through scaling phases
Network Effects: Access to TLcom’s extensive portfolio and partner network
Regulatory Navigation: Experience with African regulatory environments across multiple jurisdictions
Market Context: Global Crypto VC Trends
While global crypto venture capital experienced volatility in recent years, Africa’s blockchain sector has shown resilience. The continent’s focus on practical blockchain applications, particularly in payments, remittances, and financial inclusion, aligns with current investor preferences for utility-driven crypto projects over speculative investments.
TLcom’s approach mirrors successful global crypto VC strategies that emphasize infrastructure development and real-world application over purely speculative investments.
As the firm continues deploying the remaining TAPSI capital through 2026, African crypto entrepreneurs have a clear pathway for multi-stage funding support. This approach, combined with TLcom’s proven track record and international partnerships, positions the firm as a crucial catalyst for Africa’s continued integration into the global Web3 economy.
