Seedstars Africa Ventures I, a venture capital fund focused on early-stage African startups, has achieved a key milestone by securing $42 million in its first close. The announcement, made during the 2024 Africa Investment Forum in Rabat, highlights the fund’s dedication to fostering innovation, financial inclusion, and job creation across the continent.
Investors and Impact
The fund’s primary investors include the African Development Bank (AfDB), EIB Global (backed by the European Union via the ACP Trust Fund), and Boost Africa. With $50 million in commitments toward its $80 million target, the fund aims to address financing gaps in Africa’s underserved startup ecosystem, particularly in sectors like:
- Climate tech
- Financial inclusion
- Digital innovation
Seedstars Africa Ventures I intends to create over 10,000 formal jobs, with half reserved for women, and provide early-stage financing of up to $2 million in seed and Series A rounds, as well as follow-on investments of up to $5 million.
Notable Investments
The fund has already deployed $10 million across five transformative startups, collectively serving over 60 million people in eight African countries:
| Startup | Country | Sector | Impact |
|---|---|---|---|
| Beacon Power Services | Nigeria | Cleantech | Improving electricity access for millions |
| Poa! Internet | Kenya | Broadband access | Affordable internet for over 60,000 households |
| Xeno | Uganda | Financial inclusion | Sustainable savings products |
| Bizao | Côte d’Ivoire, Senegal, France | Payment solutions | Advanced payment aggregation systems |
| Shamba Pride | Kenya | AgriTech | Supporting 50,000 farmers through 300 franchised shops |
The portfolio has connected 60,000 homes to the Internet, supported 50,000 farmers, and empowered 30,000 people with financial services.
Commitment to Gender Equity
Seedstars Africa Ventures I aligns with the 2X Challenge criteria, emphasizing gender equity by empowering women entrepreneurs and professionals. Earlier in 2024, AfDB contributed $10.5 million to the fund, targeting the creation of nearly 9,000 jobs, 50% of which are reserved for women.
Leadership and Vision
The fund is led by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, whose collective 45 years of experience underpin its strategic direction.
Ahmed Attout, AfDB’s Director for Financial Sector Development, emphasized the fund’s transformative role:
“Seedstars Africa Ventures is a strategic opportunity to enhance risk capital access, particularly in Francophone Africa, while improving finance availability for youth and women.”
Ambroise Fayolle, Vice-President of the European Investment Bank, added:
“We are committed to accelerating digitalization and supporting African businesses driving innovation and prosperity.”
A Catalyst for African Innovation
Seedstars Africa Ventures I’s $42 million milestone reinforces Africa’s growing prominence in global investment. By nurturing high-growth startups and addressing critical funding gaps, the fund is driving socio-economic transformation and showcasing the untapped potential of the continent’s tech ecosystem.
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