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Seedstars Africa Ventures Secures $30 Million to Drive Pan-African Innovation

Seedstars Africa Ventures, with roots in Paris and Nairobi, has clinched a substantial $30M capital from EIB Global
January 12, 2024

In a significant stride towards fostering innovation across the African continent, Paris- and Nairobi-based VC firm, Seedstars Africa Ventures, has successfully closed a substantial $30 million capital commitment from EIB Global, an arm of the European Investment Bank. This marks a pivotal moment for Seedstars Africa Ventures as it secures its first major institutional investment for its ambitious pan-African venture capital fund. Let's unravel the implications of this funding boost and the strategic plans that Seedstars has in store for the African startup ecosystem.

This latest capital commitment follows an $8 million investment from the fund's anchor investor, French private equity firm LBO France, setting the stage for Seedstars Africa Ventures to target an impressive fund size ranging between $80 million and $100 million. The objective is clear — to fuel seed and series A startups, extending support up to Series B in subsequent investments.

Seedstars Africa Ventures aims to deploy its resources strategically, making initial investments ranging from $250K to $2 million. The fund further plans follow-on funding of up to $5 million for up to 30 startups, providing not just financial backing but also invaluable access to Seedstars' extensive tools, networks, and visibility for the supported entrepreneurs.

The venture capital fund is poised to address crucial funding gaps, reaching beyond the entrepreneurial hotspots of Egypt, Kenya, Nigeria, and South Africa. Seedstars Africa Ventures commits not only financial support but also operational and business assistance to founders. The fund's focus extends to startups catering to fundamental needs such as education, healthcare, utilities, and those enhancing goods, services, and efficiency.

An interesting twist lies in Seedstars Africa Ventures' plan to allocate up to 50% of the fund in Francophone Africa, an emerging investment destination. This strategic move capitalizes on lower competition, a vast market opportunity, and high-quality deals in comparison to more mature Anglophone regions.

Launched by partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule alongside the Seedstars Group in 2020, Seedstars Africa Ventures has already made notable investments in Poa Internet, Beacon, Shamba Pride, and Bizao through initial funding from LBO France. With the infusion of fresh capital, the VC firm is gearing up to accelerate its investment pace and contribute significantly to Africa's burgeoning startup ecosystem.

Seedstars Africa Ventures' securing of a $30 million capital commitment signals not only a pivotal moment for the VC firm but also a promising era for African startups. As the fund positions itself to bridge crucial gaps and support innovation, it stands as a testament to the collaborative efforts driving the continent's entrepreneurial landscape forward. The journey ahead promises not only financial growth but a transformative impact on the diverse sectors that Seedstars Africa Ventures is set to champion.

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