“Seedstars Africa Ventures Secures $30 Million Backing from EIB Global for Pan-African Startup Fund”
Seedstars Africa Ventures has successfully secured a capital commitment of $30 million from EIB Global, the investment arm of the European Investment Bank. This marks a significant milestone as the first major institutional investment for Seedstars Africa Ventures’ inaugural pan-African venture capital fund.
This new commitment comes on the heels of an $8 million investment from LBO France, the fund’s anchor investor. The venture capital fund, aiming to reach a total of $80 million to $100 million, focuses on supporting seed and Series A startups. Moreover, it extends its reach to provide follow-on funding up to Series B, addressing critical funding gaps and offering sustained support beyond accelerator programs.
To establish the fund, partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko-Lule collaborated with Seedstars Group, an emerging markets accelerator, leveraging its infrastructure and market access in Africa.
Seedstars Africa Ventures emphasizes its commitment to offering “capital well suited to the needs of entrepreneurs” across the continent. The fund aims to bridge funding gaps in regions beyond the prominent ones like Egypt, Kenya, Nigeria, and South Africa, providing operational and business support to founders.
The venture capital firm plans to make initial investments ranging from $250,000 to $2 million, with follow-on funding of up to $5 million, targeting up to 30 startups. In addition to financial support, entrepreneurs will gain access to Seedstars’ tools, networks, and visibility. Seedstars Africa Ventures believes this combination of capital and robust support for early-stage startups is essential and still relatively uncommon in Africa.
While maintaining a sector-agnostic approach, the fund expresses a keen interest in startups addressing fundamental needs such as education, healthcare, and utilities, as well as those enhancing goods, services, and efficiency. The firm, based in Paris and Nairobi, is enthusiastic about tech startups but remains open to investing in innovative brick-and-mortar businesses benefiting from digitalization.
Moreover, Seedstars Africa Ventures plans to allocate up to 50% of the fund in Francophone Africa, recognizing the region’s potential due to lower competition, substantial market opportunities, and attractive deal terms compared to more mature Anglophone regions.
EIB’s head of regional hub for East Africa, Edward Claessen, emphasized the significance of supporting funds like Seedstars Africa Ventures in growing and strengthening the continent’s startup ecosystem. The investment, backed by EU’s ACP Trust Fund and Boost Africa program, aligns with the goal of supporting founders that create jobs and contribute to economic growth.
Having already invested in businesses like Poa Internet, Beacon, Shamba Pride, and Bizao with initial funding from LBO France, Seedstars Africa Ventures is poised to accelerate its investments further with the additional backing. Additionally, Seedstars Group has invested in 26 companies in Africa through its Seedstars International Ventures Funds I and II, showcasing its broader commitment to fostering innovation and entrepreneurship in the region.
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