Enza Capital, a Nairobi-based Venture Capital (VC) firm is launching a founder partner program. This is a shared ownership model that affords founders of companies under the VC some share of the profits the VC firm makes.
In a move the firm believes will enhance trust, Enza Capital wants founders to become co-owners of the VC. For sure, this sets a new precedence in the relationship between founders and venture capitalists. The founder partner program aims to build long-term, mutually beneficial relationships.
“The founder partner program fosters alignment and collaboration. It increases the likelihood of success across all stakeholders in the venture capital structure, ranging from LPs and investors to management teams, and extends to the ultimate beneficiaries of the products or services developed by these enterprises. We truly believe in shared ownership, and we can empathize with leadership teams.” Said Lazar in an interview with TechCrunch.
On its Website, Enza Capital describes itself as “a multi-stage venture investor in category-defining founders and teams using technology to solve large and meaningful problems across Africa.”
Mike Mompi and John Lazar are the cofounders of the VC firm. They started the firm in 2019 and have closed 58 million USD in deals. The $58 million has seen the VC launch two funds investing 48 times in 31 companies. These investments span 8 African markets, including Kenya, Uganda, Nigeria, Ghana, Ivory Coast, Senegal, Egypt and South Africa.
Some of the beneficiaries are Shara, Guidewheel, and Turaco in Kenya. Others are Djamo, Autochek, Jumba, and SeamlessHR which are in the other 7 seven countries.
Enza Capital To Share Profits With Founders
Going forward 10% of the profits earned by the firm will be distributed to the founders in the partner program. Enza Capital has set out a criterion for sharing the profits.
The VC firm states they are different from others. The firm would like to do more than just reap huge return on investments. As such, they are looking out for the founders whose start-ups may not succeed. It is known that 90% of start-ups fail.
Recent reports have given proof to this with giants like Twiga Foods facing liquidation and Sendy entering administration.
