Addressing Investment Gaps with Local Capital
In a strategic move to tackle the dearth in growth-stage investing with local capital, Casablanca-based Al Mada Ventures (AMV) has emerged on the African venture capital scene. With a targeted capital pool of $110 million, AMV aims to revolutionize the investment landscape, particularly focusing on Series A and B stages—a realm often underserved in Africa.
Al Mada's Track Record and Evolving Strategy
Over the years, Al Mada has positioned itself as a major player, acquiring majority shareholdings in some of Morocco's largest private companies. The firm's portfolio spans 27 markets, with a significant presence in 25 African countries. To stay at the forefront of innovation and relevance, Al Mada has strategically pondered how to foster innovation, scale its portfolio businesses, and integrate disruptive technologies.
Venture Capital Spin-Out: AMV's Genesis
Aligning with the observed growth in the African venture capital asset class, Al Mada made a strategic move last March, launching Al Mada Ventures (AMV). This venture capital spin-out operates with a distinctive approach—it exclusively utilizes capital sourced from Africa, steering away from the conventional reliance on foreign investors and development financial institutions (DFIs).
Filling the Investment Void: Series A and B Focus
The African tech ecosystem has witnessed a surge in funding, but Series A and B stages often face a capital void. AMV's core mission is to bridge this gap, injecting growth-stage capital and fostering innovation. While early-stage and late-stage investments dominate, AMV seeks to catalyze growth at critical mid-stages where many Africa-focused funds are less prevalent.
An Evergreen Venture Capital Fund
AMV adopts an evergreen venture capital fund model, a rarity in Africa. The $110 million capital pool, anchored by diverse limited partners, includes top-tier corporate and institutional investors based on the continent. Notable figures in the AMV team, such as Omar Laalej, Yassine Soual, Narjisse Belmahi, and Rida Chahoud, bring a wealth of experience to the venture.
Challenges in Africa's VC Landscape
Africa faces unique challenges in venture capital, including a reliance on foreign capital and a reluctance among local entities to delve into the VC asset class. AMV, through its innovative funding model, aims to address these challenges and set a precedent for local corporations and institutions to venture into the dynamic world of VC.
A Focus on Collaboration
As a corporate venture capital recipient, AMV seeks to foster collaboration between corporates and startups, addressing communication gaps. By connecting startups with Al Mada's subsidiaries, AMV aims to create synergies, combining startups' innovation with corporates' resources and market influence.
Impacting Local and Global Ecosystems
AMV's journey is marked by a commitment to making outsized returns and creating local and global impact. The venture hopes that its success will inspire other legacy institutions to follow suit, thereby reshaping Africa's venture landscape. The evergreen model, coupled with a focus on Series A and B investments, positions AMV as a transformative force in the continent's evolving tech ecosystem.