Seedstars Africa Ventures has secured a $30 million investment from EIB Global, propelling its inaugural pan-African venture capital fund. This strategic infusion follows an earlier $8 million commitment from LBO France and aims to raise a total of $80 million to $100 million.
The fund's core mission is to empower early-stage startups, closing the crucial funding gap between accelerator programs and Series B rounds. By leveraging Seedstars' extensive network and expertise, this targeted approach will provide comprehensive support to portfolio companies across the continent.
Beyond the impressive fund size, Seedstars Africa Ventures stands out by tailoring its investments to the specific needs of entrepreneurs. Recognizing the underfunding outside established hubs like Egypt, Kenya, Nigeria, and South Africa, the firm plans to prioritize investments in these overlooked regions. Additionally, they offer operational and business guidance alongside financial backing, a rare combination in the African startup landscape.
Initial investments will range from $250,000 to $2 million, with potential follow-on funding up to $5 million for promising ventures. The firm actively seeks tech-driven businesses, as well as innovative brick-and-mortar companies embracing digital solutions. Notably, up to 50% of the fund will be dedicated to Francophone Africa, acknowledging its immense potential and attractive investment opportunities.
"In 2020, a clear need existed for more capital beyond the acceleration stage," explains Maxime Bouan, partner at Seedstars Africa Ventures. "This fund aims to bolster the available capital spectrum, encouraging both local and international investors while equipping entrepreneurs with the resources and visibility they need to flourish."
EIB Global, recognizing the crucial role of initiatives like Seedstars in nurturing Africa's startup ecosystems, echoed this sentiment. Edward Claessen, the EIB's head for East Africa, emphasized their commitment to supporting ventures that drive job creation and economic growth, aligning with the EU's ACP Trust Fund and Boost Africa program.
With four investments already secured, including Poa Internet in Kenya, Beacon in Nigeria, Shamba Pride in agritech, and Bizao in payments, Seedstars Africa Ventures is poised for significant expansion and impact with this substantial capital injection. This marks a new chapter in Africa's entrepreneurial journey, one fueled by targeted support, tailored investments, and a commitment to unlocking the continent's boundless potential.
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