Seedstars Africa Ventures secures $30 million investment from EIB Global
Paris- and Nairobi-based VC firm, Seedstars Africa Ventures, has announced the closing of a $30 million capital commitment from EIB Global, an arm of the European Investment Bank. This marks the first major institutional investment for Seedstars’ first pan-African venture capital fund. EIB Global has previously backed companies like IQM and Exeger. The new investment follows an initial $8 million investment from French private equity firm LBO France, which serves as the fund’s anchor investor.
Investment plans to support African startups with $80-100 million fund
With a target of $80-100 million, the Seedstars Africa Ventures fund aims to back seed and series A startups in Africa. The fund will also extend its support to selected startups for series B investments. Seedstars Africa Ventures plans to make initial investments ranging from $250K to $2 million and follow-on funding of up to $5 million. In total, up to 30 startups will benefit from this funding. Entrepreneurs will gain access to Seedstars’ tools, networks, and visibility, allowing them to develop and grow their businesses.
Seedstars Africa Ventures to invest in up to 30 African startups
Seedstars Africa Ventures plans to invest in up to 30 African startups with the capital secured from EIB Global and other investors. The fund will focus on providing capital suited to the needs of entrepreneurs in Africa and bridging funding gaps in regions beyond Egypt, Kenya, Nigeria, and South Africa. Additionally, Seedstars Africa Ventures aims to provide operational and business support to the founders of the selected startups. The fund will look to back startups addressing basic needs such as education, healthcare, and utilities, as well as those enhancing goods, services, and efficiency.
Focus on bridging funding gaps and providing operational support
One of the key objectives of Seedstars Africa Ventures is to bridge funding gaps that exist for startups in Africa. By providing capital, the fund aims to support early-stage startups and help them scale. In addition to financial support, Seedstars Africa Ventures will also provide operational and business assistance to the founders. This support will help the startups navigate challenges and make the most of their growth potential. By combining funding and operational support, the fund aims to increase the chances of success for the startups it invests in.
Pan-African VC fund targets Francophone Africa with 50% investment allocation
Seedstars Africa Ventures plans to allocate up to 50% of its fund to investments in Francophone Africa. This region presents investment opportunities for emerging VCs due to lower competition, a large market potential, and attractive deals. Seedstars Africa Ventures recognizes the potential for growth and success in Francophone Africa and aims to capitalize on these opportunities. The fund’s focus on this region will contribute to its overall goal of supporting startups across Africa and driving innovation and entrepreneurship.
In conclusion, Seedstars Africa Ventures’ $30 million investment from EIB Global marks a significant milestone for the firm’s pan-African venture capital fund. With a target of $80-100 million and a focus on bridging funding gaps, providing operational support, and targeting Francophone Africa, Seedstars Africa Ventures aims to empower African startups and contribute to the growth of the African tech ecosystem.
Analyst comment
Positive news: Seedstars Africa Ventures secures a $30 million investment from EIB Global, marking a major milestone for the pan-African venture capital fund. The fund will target up to 30 African startups, providing capital and operational support to bridge funding gaps and drive growth. The focus on Francophone Africa will contribute to the fund’s goal of empowering startups and fostering innovation in the African tech ecosystem. Market outlook: The infusion of capital and support from Seedstars Africa Ventures and EIB Global will likely boost the growth of African startups, attracting more investments and driving innovation in the market.
