Our Approach to Investment

Equity

We prefer to invest in idea stage and very early stage companies in exchange for equity. As part of an equity purchase, the parties will negotiate the terms of the preferred stock and agree on clear pricing (or a valuation) of the company at that time.

Venture Debt

Venture debt can be attractive as it offers young companies a way to get an influx of cash without giving up too much ownership, provides a relatively fast way to access new funds, and can help startups extend their runway between equity rounds — sometimes helping them hit performance milestones set by VC backers. We will consider debt for ventures with at least 12 months of operations.

SAFEs & Convertible Notes

A convertible note is debt, while a SAFE is a convertible security that is not debt. As a result, a convertible note includes an interest rate and maturity rate, while a SAFE does not. A SAFE is simpler and shorter than most convertible notes. We are able to invest with either mechanism and will also consider KISS agreements.

  • Bold

    Whilst we are interested in founders solving problems in any sector, we are keen on founders who are taking big swings at real problems. When BAF ventures succeed, they fundamentally change the landscape they operate in

  • Early Stage

    We are comfortable writing the first cheque for ventures and investing up until Series A rounds. We make investments in startups whether they are pre or post-revenue.

  • Africa-Focused

    We are interested in founders who are solving problems in African markets. We do not require our founders be Africans but we do require them to be firmly rooted in solving problems for those living on the continent

  • Scalable

    We are keen on technology-enabled ventures because we believe technology provides the best mechanism for effective scaling today. That said, we are amenable to hearing from venture builders who can demonstrate scalability and growth opportunity in their venture.