Morocco-based Al Mada Holding Group has launched a $109.8 million pan-African venture capital fund to invest in fast-growing startups.
The new venture capital aims to bank on the significant growth prospects of the African startups business, as it keeps breaking records every year, growing 12-fold over the past five years despite drawing only 1% of funding from global venture capitals.
As an objective, the Venture Capital also wants to contribute to the development and emergence of promising technology-oriented startups specialising in future industries, including financial services (fintech), health tech, logistics, education, and renewable energy.
With an aim to operate as a vertical accelerator, the venture capital will target startups having reached a certain level of maturity, helping them access the growth-dependent capital.
In addition to providing direct funding, the Al Mada venture fund will equally offer startup access to the fund’s large network of partners.
The company said, “Al Mada is delighted to bring its 100-year experience as a pan-African inverter to young innovative entrepreneurs who are building the Africa of tomorrow. Startups will thus be able to rely on our solid expertise and that of our teams specializing in Venture Capital.”
African startups are continuing to thrive, supported by the exponential growth of fintech startups. In 2021, African startups raised a total of $4.65 billion. This year, startups across the continent have raised $1 billion in a record seven weeks, prompting experts to state that the African startup landscape may reach $7.3 billion at the end of 2022.
