Seedstars gets $10.5 million from AfDB one week after a $30m commitment from EIB Global

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January 18, 2024
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2 min read
Seedstars
  • A week after receiving a $30 million capital commitment from EIB Global, a subsidiary of the European Investment Bank, Seedstars Africa is set to receive an additional $10.5 million from the African Development Bank (AfDB).
  • This new investment, a part of the Seedstars Africa Ventures I fund, will provide more support to innovative businesses with high growth potential. Besides, the venture will be able to draw in more capital, expand its presence throughout Africa, and pique the interest of other investors with this new capital commitment.
  • The African Development Bank plans to invest $7 million from its ordinary resources and $3.5 million from the European Union Boost Africa programme.

In 2019, the African Development Bank (AfDB) and the European Investment Bank (EIB) launched the Boost Africa initiative, enabling young Africans to start impactful and innovative businesses that can compete on a regional and global level, creating jobs and stimulating the economy.

The programme is a part of the Jobs for Youth in Africa Strategy 2016–2025 of the African Development Bank. Consequently, per a statement, the new investment will have an essential economic impact and generate about 9,000 full-time jobs, half of which will be reserved for women.

On January 10, 2023, the venture announced a $30 million capital commitment from EIB Global to support seed and Series A startups to help it address a significant capital gap and support startups beyond the confines of the accelerator programme. 

Seedstars Africa Ventures I fund was launched in 2020 by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule in partnership with LBO France and Seedstars, a global firm that invests in and supports entrepreneurs from emerging markets. 

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The fund focuses on companies addressing significant market challenges, generating revenue, and showing potential. 

With the backing of prominent corporations and institutional investors, the venture has invested over $7 million in 25 sub-Saharan African companies. Its primary focus is on early-stage investments in high-growth companies that address issues in underserved markets for traditional investors. 

While it focuses on French-speaking countries like Senegal, Côte d'Ivoire, Benin, and Cameroon, it also invests in Ghana, Uganda, and Tanzania.

Seedstars Africa Ventures is a venture capital fund that aims to invest $75 million in startups and business launches that address significant market barriers. It invests around €250,000 initially and injects an additional €5 million to support their growth.

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