Recursive Capital, an early-stage Bitcoin VC focused on Africa, has announced the first close of its Fund I at an undisclosed amount.
The anchor investors who participated in the round were Jack Dorsey, Chairman at Block; Pete L. Briger Jr., former partner at Goldman Sachs and Chairman at Fortress Investments Group; and Jeff Booth, Author of the Price of Tomorrow and Founding Partner at Ego Death Capital.
Recursive Capital is an early-stage venture capital fund investing exclusively in Bitcoin companies focusing on the African continent. Fund I will provide Bitcoin founders capital, mentorship, and strategic support for sustained growth and impact.
CEO Abubakar Nur Khalil said, “The focus of Fund I is to lay the foundations for a thriving Bitcoin ecosystem in Africa that will lead the world in innovation, growth, and impact.”
Recursive Capital’s Operating Thesis
Recursive Capital’s operating thesis revolves around the notion that Africa’s unique problems make it a prime location for becoming the global Bitcoin development capital.
This will naturally lead to creation of the most innovative and impactful native Bitcoin companies. These companies will most effectively reflect the anti-fragility, resilience, and ethos of Bitcoin.
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The Fund will support companies covering Bitcoin infrastructure (mining, data/analytics, etc.), commercial use cases (exchanges, custody, etc.), and frontier technologies like the Lightning Network.
In addition to Recursive’s growing network of entrepreneurs, builders, and experts in the Bitcoin ecosystem, the team at Recursive Capital also benefits from its strategic advisors.
Some include Jeff Booth, author of “The Price of Tomorrow and Founding Partner at Ego Death Capital, “The Bitcoin Leap author, and Charlene Fadirepo, former U.S. regulator and CEO of Mango Digital Strategies.
Commenting on the raise, Jeff Booth said, “Abubakar is an incredible leader in the Bitcoin community, and Bitcoin has the potential to free the people of Africa from centuries of living in exploitation, [and] it seemed natural to invest in a region that needed this protocol the most.”
Meet Recursive Capital and its Founder
Abubakar founded Recursive Capital in 2020 to ensure future efficient capital allocation to Bitcoin companies. The venture firm intends to build, maintain, and support a thriving ecosystem that delivers solutions constructed for and by those on the continent.
Abubakar is a Nigerian Bitcoin core contributor, Board member, and the CEO of Btrust, the Jay-Z and Jack Dorsey-funded Bitcoin non-profit focused on decentralizing Bitcoin development in the global south.
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He has extensive experience supporting and training Bitcoin developers in Africa, and he has been integral to growing the Bitcoin ecosystem in Africa and is a leading voice in the Bitcoin space.
Since the launch of Fund I, Recursive has invested in Bitnob, a leading Bitcoin financial services company, Fedi, a collaborative custody and community super app, and Synota, a pioneering Bitcoin company streamlining energy payments over the Lightning Network.
The company actively seeks companies that are building at the forefront of the Bitcoin ecosystem while laying the groundwork to catalyze and brew future companies and builders.
What The Future Looks Like For Recursive Capital
Recursive Capital’s Fund I will deploy an average of $50k—$100k checks in early-stage companies with growth potential and track records. The venture capital firm will also provide smaller check sizes and additional help, mentorship, and guidance to even earlier-stage companies through its venture production arm, Recursive Labs. The Fund strictly makes equity investments and does not engage in alternative financing coins, tokens, or structures.
In 2025, Recursive Capital intends to open Recursive Labs for public applications to help entrepreneurs build their companies with the support, funding, and guidance they need.
The Bitcoin VC firm will expand its current funding efforts to incorporate other investments from its target investment themes, such as Bitcoin mining, given its increasing maturity, strategic importance, and standardization on the continent.
While articulating his vision of Recursive Capital’s future role, Abubakar hopes the platform “become a source-of-signal on the continent for investors seeking to benefit from exposure to a once-in-a-generation asset—Bitcoin—and ultimately contributing to Africa becoming the Global epicenter of building Bitcoin companies of the highest quality, impact, and competitive edge.”
Main Image: Jack Dorsey speaks at TED 2019: Bigger Than Us. April 15 – 19, 2019, Vancouver, BC, Canada. Photo: Ryan Lash / TED via Flickr
