Pan-African venture capital firm Enza Capital has secured a first close of $21 million for its third fund, Enza Capital III LP, as it looks to increase investment in artificial intelligence startups across the continent.
The firm is targeting a total fund size of $60 million, with a hard cap of $80 million. It expects to reach a final close in about a year.
Enza Capital III LP will focus on AI startups across Africa, targeting a sector that continues to attract relatively little venture capital despite growing interest in its potential.
Through 2026, investors have deployed approximately $46.8 million into African AI startups, with fintech and risk intelligence companies receiving the bulk of the funding. While the figure reflects growing investor interest, it remains modest compared with the billions being invested in AI companies in other regions.
A recent report by Briter Bridges highlights the funding constraints facing the sector, with 30% of surveyed companies entirely bootstrapped.
Read more: How investors are structuring risk in Africa’s next funding cycle
Funding is also concentrated among more established companies, making it harder for newer startups to secure the capital needed to get off the ground.
This funding gap has implications beyond how quickly startups can grow. It also shapes how they build their products. According to the Briter Bridges report, early-stage companies typically rely on readily available AI resources, including third-party APIs. While these tools make it easier to develop products with limited resources, their costs can become a burden as companies scale.
Capital, however, is not the only challenge. Some founders surveyed in the report say the broader venture capital preference for proven traction makes it harder for early-stage AI companies to raise funding and finance growth.
Enza Capital’s new fund will invest in a market where access to capital remains a significant constraint, particularly for startups trying to move beyond early experimentation and build scalable AI products.
The firm’s existing portfolio includes SeamlessHR, Money254, Sendy, Gigmile, and Peach Payments.
Last updated: November 11, 2026
