Unlocking Opportunities for African Diaspora Investments
When Joe Kinvi took on the role of head of finance at Touchtech Payments in 2017, the startup was unable to meet his full salary requirements. Kinvi negotiated for stock options as part of his compensation package. Fast forward eighteen months, Touchtech Payments was acquired by Stripe, and Kinvi’s equity in the company converted into valuable Stripe shares. With this newfound financial security, Kinvi ventured out to bootstrap a side project that eventually led to the founding of his own startup.
Kinvi’s brainchild, Borderless, is dedicated to empowering Africans in the diaspora to collectively invest in startups and real estate ventures back in their home countries. Since its beta launch last year, Borderless, based in the U.K., has facilitated over $500,000 in transactions on its platform.
The Birth of Borderless
The idea for Borderless stemmed from Kinvi’s experience in 2020 when he co-founded an investment club called Hoaq with a group of friends. Hoaq aimed to pool resources from local and diasporan angels to support African startups. However, the group encountered numerous challenges, from opening a bank account to navigating regulatory hurdles associated with collective investing.
Despite the initial roadblocks, Hoaq persevered and developed a system that streamlined the investment process. This experience laid the groundwork for what would later become Borderless. Today, Hoaq has invested in promising companies like LemFi, Bamboo, and Chowdeck.
Revolutionizing Diaspora Investments
Borderless serves as the backbone for diaspora collectives, offering a seamless platform for onboarding members, processing cross-border payments, and deploying capital securely. The startup has garnered significant interest, with over 100 communities on its waitlist. Currently, Borderless has facilitated investments in ten startups and two real estate projects in Kenya, with minimum investment thresholds set at $1,000 for startups and $5,000 for real estate.
Operating under U.K. regulatory oversight, Borderless ensures compliance while fostering investment opportunities for diaspora members. While the platform currently focuses on startups and real estate, Kinvi envisions expanding into other asset classes, such as film and diaspora bonds.
Building Trust and Security
Central to Borderless’s model is the emphasis on trust and security. Kinvi acknowledges the reluctance of many diaspora investors to engage in informal investment avenues due to past negative experiences. To mitigate risks, Borderless directs investor funds to verified sellers, escrow accounts, or legal entities, bypassing collective managers. The platform enforces rigorous legal and compliance checks to uphold regulatory standards.
Borderless generates revenue through transaction fees, membership dues, and FX spreads. The startup aims to introduce additional features like remittance services, payout fees, and asset management tools in the future.
Empowering Diaspora Investments
Borderless’s overarching goal is to tap into the $30 billion in migrant savings that remain underutilized each year. While existing remittance platforms cater to immediate financial transfers, Borderless stands out for its long-term investment focus. The startup has attracted notable investors like DFS Lab, Paystack CTO Ezra Olubi, and executives from Stripe and Google.
For Kinvi, Borderless represents more than just financial returns—it embodies a sense of identity and community for Africans in the diaspora. By providing a secure and scalable investment platform, Borderless paves the way for individuals to invest confidently in their homeland.
As Borderless continues to expand, maintaining robust identity verification, fraud detection, and legal compliance measures will be essential to safeguard the platform against potential risks and ensure sustainable growth.