- Seedstars Africa Ventures I, a venture capital fund focused on early-stage African startups, has reached a significant milestone with a $42 million first close.
- This achievement, announced at the 2024 Africa Investment Forum in Rabat, underscores a growing commitment to fostering innovation and job creation across the continent.
- Key investors include the African Development Bank (AfDB), EIB Global supported by the European Union through the ACP Trust Fund, and Boost Africa, among others. Focus areas include climate tech, financial inclusion, and digital innovation.
- The fund, which has secured $50 million in commitments toward its $80 million target, aims to create over 10,000 formal jobs and bridge financing gaps in Africa’s underserved startup ecosystem.
Seedstars Africa Ventures I provides early-stage financing of up to $2 million in seed and Series A rounds, with follow-on investments of up to $5 million. By leading multiple funding rounds, the fund not only unlocks co-investment opportunities but also provides startups with operational support.
Similarly, Seedstars Africa Ventures attracted $10.5 million from the African Development Bank earlier this year to support high-growth startups, with a goal of creating nearly 9,000 jobs, 50% reserved for women.
The fund is already delivering on its promise, having deployed $10 million into five pioneering startups in sectors ranging from cleantech to financial inclusion. These startups collectively serve over 60 million people across eight African countries and include:
- Beacon Power Services (Nigeria): A cleantech innovator improving electricity access for millions.
- Poa! Internet (Kenya): Offering affordable broadband to over 60,000 households.
- Xeno (Uganda): Providing sustainable financial products for attractive savings.
- Bizao (Côte d’Ivoire, Senegal, France): Delivering cutting-edge payment aggregation solutions.
- Shamba Pride (Kenya): Supporting nearly 300 franchised shops to empower farmers with tools, insights, and training.
The portfolio has connected 60,000 households to the Internet, supported 50,000 farmers, and empowered 30,000 people with financial services.
Seedstars Africa Ventures I is helmed by founders Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, whose collective 45 years of investment experience underscore the fund’s expertise.
The fund has also prioritised gender equity, with its portfolio fully aligned with 2X Challenge criteria to empower women entrepreneurs and professionals.
Investors such as the AfDB and EIB have highlighted the fund’s role in advancing digital transformation and financial inclusion. “Seedstars Africa Ventures is a strategic opportunity to enhance risk capital access, particularly in Francophone Africa, while improving finance availability for youth and women,” said Ahmed Attout, AfDB’s Director for Financial Sector Development.
Ambroise Fayolle, Vice-President of the European Investment Bank, added, “We are committed to accelerating digitalisation and supporting African businesses driving innovation and prosperity.”
Seedstars Africa Ventures I’s $42 million milestone is a testament to Africa’s growing prominence in global investment circles. By addressing critical funding gaps, the fund is not only nurturing high-growth startups but also driving socio-economic transformation across the continent.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
