In Brief: UK’s CDC Group expands venture capital program

CDC Group, the United Kingdom’s development finance institution, is upping its focus on venture capital, having established a VC investment committee in mid-January. It has so far invested $140 million across 11 VC funds. The money will be focused on “key technology hubs” in Africa and South Asia. Why now? “Early-stage companies require relatively small amounts of capital but have an inherently higher-risk profile than growth and late stage investments,” a spokesperson said. “Evaluating investments in this sector required a distinct set of skills and experiences so we felt it was prudent to create a dedicated Committee made up of members with that specific background to oversee our VC investment operations.” The group recently made two high-profile appointments to the committee: Anne Glover, CEO of Amadeus Capital Partners, and Nikunj Jinsi, a developing markets VC expert who advises companies on venture strategy. Where is the money going? Co-investments that CDC has made so far include mPharma, a health care logistics technology business working across Africa; Bizongo, said by CDC to be India’s largest business-to-business platform for packaging and unbranded consumables, which brings smaller businesses employing low-income workers into a digital supply chain; and CropIn, a company helping smallholder farmers, particularly in India and Africa, with software solutions. CDC Group is focusing its investments on technology in markets in Africa and South Asia, as it “offers a non-linear path to achieving development impact.” What’s next? “We are looking to grow our commitment to venture capital funds and to make further co-investments,” the spokesperson said. “Venture capital will become an increasingly important part of our investment product line-up. Over time, CDC could also look to make early stage direct VC investments alongside partners.”