Founder-market fit is crucial for a startup's success, and operators turned founders have a significant advantage in achieving this fit. Data indicates that a lack of expertise and business acumen among founders is a major reason for failed VC investments.

This principle extends to operator VCs—firms usually launched by former startup founders. Although there’s no conclusive proof that operator VCs are better investors, recent research shows that founders and operators turned VCs are notably more successful at backing companies compared to traditional investor VCs.

Operator VCs have a long history in Silicon Valley but are less prevalent in Europe and Africa. Only 8% of VC firms in these regions are led by former operators, compared to nearly half in the U.S. OpenseedVC is adopting this model in Africa and Europe with a new fund.

The firm, which aims to be the first investor in startups launched by operators in these regions, has announced the initial close of its $10 million early-stage fund. General partner Maria Rotilu stated,

"The first close is well into the millions and fundraising is still ongoing," without specifying the exact amount. OpenseedVC aims to reach the final close within a year, she added.

Maria Rotilu

Supporting Operators with Funding and Community

Rotilu founded OpenseedVC with the goal of investing early in experienced operators eager to launch technology companies. The firm provides these founders not only with capital but also with support from a community of seasoned operators, currently comprising over 50 individuals.

“If you’re supporting operators who have identified a problem and are ready to build their technology, they need capital and guidance from other experienced individuals. We focus on enhancing the operator network in four key areas: software engineering, product, go-to-market, and people and talent,”

said Rotilu.

Most of OpenseedVC’s operator network consists of individuals Rotilu has worked with or received referrals for. Some are also limited partners in the fund, though they don’t earn carry now. Other LPs include founders and professionals from traditional and tech businesses and high-net-worth individuals across Africa, Europe, and the U.S.

Backing Pre-Seed Startups in Africa and Europe

London-based OpenseedVC plans to target at least 60 startups over the next five years. The early-stage fund, which has an open application process allowing founders to apply without an introduction, will provide checks of up to $150,000 to startups focused on the future of commerce (including B2B software, AI, and fintech), future of work (productivity), and digital health.

“We focus on the earliest stages of pre-seed investments, moving independently and quickly without requiring a lead investor before we invest,”

remarked Rotilu. The fund is particularly interested in domain experts and second-time founders who have previously built and exited a startup.

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So far, the fund has made two investments: one in a stealth U.K.-based AI-enabled supplier dispute resolution software and another in Intron, a speech-to-text transcription model for underserved accents, starting with Africa.

“We chose Africa and Europe to apply our thesis: by backing experienced operators early with the right capital and support, we can build a diversified portfolio that generates substantial returns and provides crucial support for ambitious operators,”

said Rotilu, who has previously invested across multiple regions with different funds.

Striving for a Diversified Portfolio

Before launching OpenseedVC, Rotilu held various operator roles, including country manager at Uber and general manager at Branch in Nigeria, scaling both tech companies to millions of users. She later pursued an MBA at Oxford, serving as managing director at the Oxford Seed Fund. During her MBA, she interned at Hustle Fund and then joined Octopus Ventures as a principal and fund manager of First Cheque Fund.

At Octopus, Rotilu saw the need for a stronger focus on Africa, a market where she had made several angel investments. Seeking clarity and autonomy to develop a strategy tailored to her experience as an operator and investor, she launched OpenseedVC.

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The increasing number of female-led VC firms globally is encouraging, although women, particularly women of colour, still face challenges in raising funds. As more women enter venture investing and receive support from LPs and firms, funding for female-led startups will increase, benefiting all stakeholders. OpenseedVC is committed to this goal, aiming for a truly diverse portfolio with a 50/50 balance in co-founding teams.

“There are few female-led funds globally, and we bring a specific perspective on a diversified portfolio. We apply a gender lens to our portfolio strategy, striving for a balance across geography, industry, and gender,”

Rotilu stated.

Applications are currently open, and interested start-ups can learn more and apply by visiting the OpenseedVC website.