Ajim Capital Tightens Checks as Africa VC Gets Selective

In Short

Ajim Capital is raising a second fund and adjusting its strategy for a tougher African venture capital market. Founder and managing partner Eunice Ajim says the firm will likely make fewer investments than originally planned. She is leaning more into AI-enabled software, but with stricter filters.

What Happened

Ajim Capital began investing in 2022 with a first fund of $10 million. Eunice Ajim initially expected to make about 80 investments from that fund.

Instead, the fund backed 20 companies. As the firm raises a second fund, Ajim says she does not expect to repeat that pace. She is planning for a portfolio of around 30 companies.

Her comments reflect a wider reset across African VC. Many investors are writing fewer cheques and spending more time on due diligence, which means deeper checks on traction, unit economics (how much profit or loss a business makes per customer), and governance.

Ajim also said she is backing AI-enabled software in Africa. In practice, that means software products that use machine learning models to automate work or improve decisions, like a smarter workflow tool rather than more headcount.

Why It Matters

For founders, “spray and pray” fundraising is fading. Investors like Ajim Capital are signalling that getting attention now depends on clear proof of demand, strong execution, and realistic growth plans.

For operators and product teams, the shift toward AI-enabled software suggests a new bar for efficiency. Startups will be pushed to show how AI improves margins, reduces churn, or lowers operating costs, not just how it sounds in a pitch.

For the ecosystem, more selective investing can slow down the number of funded startups. It can also improve survival rates if capital concentrates in teams with clearer paths to revenue and repeatable distribution.

The message is simple. Capital is still available, but it is harder to win and easier to lose without strong fundamentals.