CRE Venture Capital

CRE Venture Capital Research

Investment Thesis

CRE Venture Capital is a pioneer in global African tech investing, built on the conviction that category-defining companies will emerge from Africa and be levered to African growth. The firm partners with visionary entrepreneurs building the next generation of tech businesses that address Africa's largest challenges and opportunities. Their investment thesis explicitly requires portfolio companies to target markets of $5 billion or larger, ensuring they're building truly transformational businesses. The firm has created one of the first truly global co-investment syndicates around African tech, integrating capital and relationships from names like Google, Tencent, and Y Combinator alongside traditional venture partners.

Stage and Check Size Focus

CRE Venture Capital has a clear focus on very early-stage investing:

• Primary focus: Seed stage ($2-$10M typical round size)
• Average check size: $2.26M for Seed investments
• Secondary focus: Series A (average $10.1M round size)
• Check range: Appears to range from $500K to $10M+ depending on stage and company profile

The firm leads with conviction in entrepreneurs they believe in, with a pattern of making first institutional investments and building long-term relationships. They also reserve capital for follow-on investments in successful portfolio companies.

Geographic and Sector Focus

CRE Venture Capital invests across Africa with particular emphasis on:

• Primary geographies: Nigeria (6 investments), South Africa (6 investments)
• Secondary geographies: Kenya, Uganda, Ghana, and across sub-Saharan Africa
• Emerging expansion: UK and US-based companies serving African markets

Sector diversity across the portfolio:

• Consumer (B2C): 14 investments - including gaming, e-commerce, fintech for consumers
• Enterprise Applications (B2B SaaS): 13 investments
• Retail: 9 investments
• FinTech/Payments: 8 investments - critical infrastructure for African financial inclusion
• Vertical SaaS: 6 investments

The portfolio reflects strategic diversity: 49 tech companies, 32 enterprise companies, 29 consumer companies, and 23 software-focused companies.

Key Investment Criteria and Preferences

Market Size Requirement: All portfolio companies must target markets of $5B+. This is a hard requirement that filters for truly transformational opportunities, not incremental solutions.

Female Leadership Commitment: CRE allocates ≥30% of capital to women-led companies, demonstrating a commitment to inclusive entrepreneurship across Africa.

Global Co-Investment Access: Portfolio companies gain access to a unique syndicate including Google Ventures, Tencent, Y Combinator, Omidyar Network, Endeavor, and Norrsken22.

Founder Preferences: CRE backs technically sophisticated founders with deep market understanding of African challenges. Their portfolio includes serial entrepreneurs, technically trained founders (engineers, data scientists), and teams combining local expertise with international experience.

Fund Structure and AUM

Current Fund: CRE Venture Capital Fund III A LP is the active fund, backed by institutional limited partners including the British International Investment (BII), a UK government development institution.

Assets Under Management: $406.5M (as of June 2025)

Fund Timeline: 10+ year fund vehicles typical for early-stage investing, providing patient capital needed for companies building category-defining businesses.

Team and Decision Making

Key Team Members:

1. Pardon Makumbe, Founding Partner & Managing Partner

   • Princeton-trained electrical engineer
   • Wharton MBA
   • Former Principal at EL Rothschild (family office investment holding)
   • Previous experience at Bain & Company
   • Extensive experience in cross-border African and global investments
   • Location: Washington, DC (primary)

2. Pule Taukobong, Founding Partner

   • Founding Partner of Africa Angels Network (first angel investment group for African tech)
   • Previously at Investec Asset Management
   • Deep South African capital markets experience
   • Board member of Andela (portfolio unicorn)
   • Location: Cape Town (primary)

3. Federico Pirzio-Biroli, Partner

   • Location: Nairobi (provides East Africa perspective)

4. Catalin Voss, Venture Partner

   • Based in Silicon Valley ecosystem
   • Brings technical expertise and Silicon Valley perspective

5. Principals & Investment Team:

   • Salem Belay (Principal, based in New York)
   • David Eddyabasi (Principal, based in Lagos)
   • Janet Ogabi (Principal, based in Lagos)

Team Structure: 13-person team including 3 Partners, 1 Venture Partner, and 3 Principals. The geographic distribution (US, South Africa, Kenya, Nigeria) gives the firm on-the-ground presence across critical African tech hubs.

Decision Process: Partnership model with Pardon and Pule as founding partners providing strategic direction. Investment decisions involve the partnership with input from regionally-based principals who have deep market knowledge.

Recent Activity and Momentum

2025 Investments (YTD):

• Flood (UK/South Africa focus) - Seed round, August 2025
• Cutstruct (Nigeria) - $1.5M seed round, June 2025 (co-led with E3 Capital)

2024 Activity:

• Sukhiba (Kenya) - Seed extension/follow-on, August 2024

Notable Portfolio Achievements:

Unicorns (2 total):

1. Flutterwave - Africa's leading fintech infrastructure company, Series D, $489M total raised
2. Andela - Tech talent training and employment solutions, Series E, $381M total raised

Major Portfolio Companies:

• Carry1st - Mobile gaming publisher, Series A, $65.5M raised
• Yoco - Payment processing for merchants, Series C, $107M raised
• Sabi - B2B e-commerce marketplace, $300M+ valuation
• Definely - Legal tech, Series B, $42.5M raised
• Stitch - South African fintech, Series A, $55M announced

Investment Approach and Typical Involvement

• Board participation: Yes - Pule sits on Andela board
• Operational support: Strategic direction and global syndicate access
• Support beyond capital: Access to Google, Tencent, Y Combinator networks
• Lead vs. Follow: Mix of leading rounds and participating in co-investment syndicate

Fund Status and Outlook

• Status: Actively deploying from Fund III
• Momentum: Consistent deal flow, 1-2 new first-time investments annually
• Capital availability: Fund III well-capitalized for follow-ons and new investments
• Focus: Continued emphasis on early-stage African tech with global ambitions
• Market positioning: CRE has positioned itself as the go-to VC for African founders building category-defining companies, with emphasis on female founders and critical market needs.