Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage African startups, has reached a major milestone with a $42 million first close. This accomplishment, announced during the 2024 Africa Investment Forum in Rabat, reflects a deepening commitment to advancing innovation and job creation across the continent.
The fund has attracted investments from prominent institutions, including the African Development Bank (AfDB), EIB Global with support from the European Union through the ACP Trust Fund, and Boost Africa, among others. Its primary focus lies in high-impact sectors like climate tech, financial inclusion, and digital innovation.
With $50 million already secured toward its $80 million target, the fund aims to create over 10,000 formal jobs while addressing financing gaps in Africa’s underserved startup ecosystem. Seedstars Africa Ventures I offers early-stage funding 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 enables co-investment opportunities and provides startups with essential operational support.
Earlier this year, Seedstars Africa Ventures also received $10.5 million from the African Development Bank to fuel high-growth startups, aiming to generate nearly 9,000 jobs, with 50% reserved for women.
The fund’s impact is already evident, with $10 million deployed across five innovative startups in diverse sectors, serving over 60 million people across eight African countries:
- Beacon Power Services (Nigeria): Revolutionizing electricity access with cleantech solutions.
- Poa! Internet (Kenya): Delivering affordable broadband to more than 60,000 households.
- Xeno (Uganda): Offering sustainable financial products to promote savings.
- Bizao (Côte d’Ivoire, Senegal, France): Advancing payment aggregation technologies.
- Shamba Pride (Kenya): Empowering farmers through nearly 300 franchised shops providing tools, insights, and training.
This landmark achievement underscores Seedstars Africa Ventures I’s vital role in fostering entrepreneurial growth and economic transformation in Africa.
The portfolio has transformed lives across Africa by connecting 60,000 households to the internet, equipping 50,000 farmers with vital resources, and empowering thousands through financial services.
Seedstars Africa Ventures I is led by founders Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, whose combined 45 years of investment expertise solidify the fund’s position as a leader in early-stage venture capital in Africa.
A strong advocate for gender equity, the fund adheres to the 2X Challenge criteria, empowering women entrepreneurs and professionals across its portfolio. Key investors, including the African Development Bank (AfDB) and EIB Global, have praised the fund’s impact in advancing digital transformation and financial inclusion.
“Seedstars Africa Ventures is a strategic opportunity to enhance access to risk capital, 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, echoed these sentiments: “We are committed to accelerating digitalisation and supporting African businesses driving innovation and prosperity.”
The $42 million first close of Seedstars Africa Ventures I marks a significant milestone, reinforcing Africa’s growing role in the global investment landscape. By addressing critical funding gaps, the fund is not only scaling high-growth startups but also driving socio-economic transformation across the continent.
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