Jack Dorsey Backs Recursive Capital, an African Bitcoin Venture Capital Firm

Recursive Capital, a venture capital firm focused on investing in African Bitcoin companies, announced the first close of its Fund I today.

African Bitcoin venture capital firm Recursive Capital has announced the first close of its Fund I with $7.5 million in commitments from Block Chairman Jack Dorsey, former Partner at Goldman Sachs and Chairman of Fortress Investment Group, Peter L. Briger, Jr., and author of The Price of Tomorrow and Founding Partner at Ego Death Capital, Jeff Booth.

As reported by Bitcoin Magazine in May, Recursive Capital invests exclusively in early-stage companies based in Africa that reflect the resilient nature of Bitcoin. Its operating thesis is that Africa’s unique monetary and financial issues make it the ideal region to become the Bitcoin development capital of the world.

The firm’s CEO, Abubakar Nur Khalil, a Nigerian Bitcoin Core contributor who also serves as the interim CEO of ₿trust, a Jay-Z and Jack Dorsey-funded Bitcoin non-profit that funds African Bitcoin developers, commented on the purpose of the fund in a press release.

"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," said Nur Khalil.

The Details Of Fund I

Fund I is aimed at supporting Bitcoin infrastructure companies (e.g., bitcoin miners), companies creating products that have commercial use cases (e.g., bitcoin exchanges and wallets) and companies building cutting-edge technology on the Lightning Network and Fedimint protocols.

The fund invests between $50,000 to $100,000 on average to each of the companies in its portfolio and strictly makes equity investments; it doesn’t engage in alternative financing structures or accept tokenized securities or altcoins in exchange for investment.

Nur Khalil believes that Africa can be a leader in Bitcoin development.

Since the launch of Fund I, Recursive has invested in Bitnob, which offers bitcoin-native financial services and facilitates cross-border payments; Fedi, which has created a “Community Superapp” that enables collaborative custody of bitcoin, and Synota, which streamlines utility bill payments over the Lightning Network.

Investors In The Fund

Dorsey has been a long-time proponent of Bitcoin adoption in Africa and has been investing in Bitcoin-related companies on the continent for years. He spoke at the inaugural African Bitcoin Conference in Ghana in 2022 and will speak again at this year’s edition of the conference in Kenya next month.

Jeff Booth has also been a notable supporter of Bitcoin proliferation in Africa and believes strongly in the work that Nur Khalil is doing.

“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,” Booth told me via email. “It seemed natural to invest in a region that needs this protocol the most.”

The Future Of Recursive Capital

Next year, Recursive Capital plans to launch Recursive Labs to further its efforts in providing mentorship, guidance and strategic insights to the founders of companies in its portfolio.

It also plans to expand its funding for bitcoin mining companies. The bitcoin mining industry in Africa has been capitalizing on cheap, renewable power and driving the development of green energy technology, and Nur Khalil plans to invest in this trend.

Beyond bitcoin mining companies, Nur Khalil will continue to keep his eyes open for other African Bitcoin companies that are on the forefront of innovation, as he plans to make Recursive the go-to firm for investors looking to gain exposure to the burgeoning Bitcoin industry on his home continent.

“I want Recursive and the companies in its portfolio to be a source of signal on the continent for investors seeking to benefit from exposure to a once-in-a-generation asset — bitcoin,” he said. “And I ultimately want to contribute to Africa becoming the global epicenter of building Bitcoin companies of the highest quality, impact, and competitive edge.