EIB Global Commits $30 Million
Seedstars Africa Ventures, a Paris and Nairobi-based venture capital fund, has secured a substantial commitment of $30 million from EIB Global, a subsidiary of the European Investment Bank. This funding injection follows an $8 million investment from French private equity firm LBO France, the anchor investor for the venture capital fund.
Paving the Way for African Entrepreneurs
Positioning itself as a pivotal player in the African startup ecosystem, Seedstars Africa Ventures aims to bridge funding gaps, especially in regions beyond the prominent four – Egypt, Kenya, Nigeria, and South Africa. Collaborating with the Seedstars Group, a prominent emerging markets accelerator in Africa, the VC firm leverages the accelerator’s infrastructure and market access to tap into the vast potential of the African market.
Strategic Focus: From Seed to Series B
The fund targets early-stage startups in their seed and series A stages, providing essential follow-on funding up to Series B. Unlike traditional acceleration programs, Seedstars Africa Ventures emphasizes the need for a more extensive capital pool. The fund, aspiring to close between $80 million and $100 million, is strategically positioned to meet the diverse capital requirements of African entrepreneurs.
Diverse Support Beyond Financial Backing
Led by partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, Seedstars Africa Ventures offers more than just financial support. Initial investments range from $250,000 to $2 million, with follow-on funding reaching up to $5 million for up to 30 startups. Entrepreneurs gain access to Seedstars’ extensive tools, networks, and visibility, enriching their journey beyond monetary contributions.
Sector-Agnostic Approach with a Unique Focus
While remaining sector-agnostic, Seedstars Africa Ventures expresses particular interest in startups addressing fundamental needs such as education, healthcare, and utilities. The fund welcomes tech startups and innovative brick-and-mortar businesses gaining advantages through digitalization. A unique approach involves allocating up to 50% of the fund to Francophone Africa, recognizing the untapped potential in this region.
A Commitment to African Growth
The investment, backed by the EU’s ACP Trust Fund and Boost Africa program, underscores the importance of supporting funds in Africa to nurture startup ecosystems and contribute to economic growth. Seedstars Africa Ventures has already made significant investments in businesses like Kenya’s Poa Internet, Nigeria’s Beacon, Shamba Pride in agritech, and Bizao in payments. With the additional funding from EIB Global, the VC firm is poised to accelerate its investments, making a lasting impact on the African startup landscape.
Transformative Journey in African Entrepreneurship
Beyond this pan-African fund, the broader Seedstars Group, with investments in 26 companies through its Seedstars International Ventures Funds I and II, demonstrates its commitment to African startups. As these investments unfold, a transformative journey in African entrepreneurship is underway, driven by strategic partnerships and substantial capital commitments.