(Case study 2) – Diversity dividend: Female fund managers in Africa – Alitheia Capital

Female fund managers are very much in the minority worldwide. In the US, only nine per cent of decision makers in the VC space are women. In Africa, no definitive numbers are yet available, but female fund managers are hard to come by – a big mistake for the VC world, as data clearly demonstrates a direct link between gender diversity in teams, and increased profitability.

The Diversity dividend: Female fund managers in Africa series looks at firms that recognise this truth, and put diversity front and centre. Tokunboh Ishmael is co-founder and managing partner at Alitheia Capital, which recently started deploying its US$100 million Alitheia IDF gender smart fund – actively looking to back female founded businesses and companies serving female consumers. Alitheia is the second focus of a series of case studies and podcasts produced by Disrupt Africa, commissioned by Boost Africa Technical Assistance Facility and financed by the European Union under EDF Thematic Blending and Cotonou Investment Facility.

Diversity dividend: Female fund managers in Africa – Alitheia Capital

Gender diversity in VC teams has a demonstrable link to increased profitability. And yet a tiny minority of decision makers in the VC space globally are women. In the US, the figure stands at nine per cent. In Africa, female fund managers are even less commonly encountered.

Witnessing first hand the extent to which prosperity and poverty exist alongside each other in Nigeria raised some important questions around venture capital models and social development for a young Tokunboh Ishmael starting out in her investing career. The result? She went on to launch one of Africa’s only female-led VC funds, Alitheia Capital, which recently started deploying its US$100 million Alithea IDF gender smart fund – actively looking to back female founded businesses and companies serving female consumers.