MAGIC Fund, a global collective of founders, who are interested in supporting founders like themselves, announced via their Medium page, on Tuesday, 6th of July, 2021, that they have raised a $30 Million Fund II to back early-stage startups. Earlier on, through Fund I, which was over $1.5 million, the VC firm had already supported over 70 early-stage ventures in their goal of scaling and iterating effectively with their products. Some of the companies that were backed from their pre-seed and seed-stage included: 🇺🇸 Novobank, which has just completed a funding raise of over $40.7 Million Series A, 🇮🇩 Payfazz that had raised, as at July, over $53 Million Series B in funding, 🇨🇴 Frubana with over $65 Million in Series B funding in June, 🇳🇬 Mono which raised $2.6 Million in Seed funding in May, and 🇺🇸 Retool, valued at nearly a billion dollars.
The VC firm carried through these funding projects on the back of its Founders-backing-founders initiative that functions based on the motive that startups are not only looking to access fundings but are interested in funders/advisors that are sympathetic to their challenges. There are, consequently, no better advisors to startups than those who have gone down the same path.
Image Credit: MAGIC, 2021
Their investments are targeted at the global stage, with Africa-focused investments to be overseen by Kauffman Fellow Temi Marcella Awogboro, while Helium Health’s Dimeji Sofowora and Alison Cheung oversee European investments, and Payfazz’s Hendra Kwik and Oxy2’s Elvis Zhang will handle their Southeast Asia’s investments. Apart from these, MAGIC has brought onboard other notable figures as Stitchroom’s Tom Chen, Medumo’s Adeel Yang, Juice’s Michael Lisovetsky & Troy Osinoff who will collectively manage North American investments. To handle investments in companies founded by women, Alison Cheung and Tito Ovia have been specifically tasked with that responsibility.
Support for these ventures would go beyond just finance, to other important areas such as startup advisory and gain on the vast experience of MAGIC partners. Mark Johnson opines that one of the important skills for innovation is the capacity to start relationships through networking. Right networking channels can come through these opportunities to interface with other founders, who have failed and succeeded as well at different ventures. With Fund II, MAGIC is looking to writing checks of between $100,000 – $300,000 for different vetted early-stage startups to look at ways of helping these companies to grow and scale. Applications are already ongoing via the MAGIC website. The firm is particularly focused on early-stage ventures with interests in emerging markets and high on building quality customer experiences. The investments would be further targeting innovations in fintech, healthcare, women’s health, and developer tools.
As Adegoke Olubusi, Managing Partner of the fund, highlights as important for the VC firm, “The vision for MAGIC is going back to how early-stage venture capital began, which is, founders investing in other founders and supporting them through the journey. We’re going to keep scaling this up as much as we can, across different geographies and industries, and we’re very happy for the headstart we already have.” It would be interesting to see how early-stage startups make good use of this opportunity for growth, most especially, startups within Africa.