Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage African startups, has achieved a significant milestone by securing a $42 million first close. This accomplishment was announced at the 2024 Africa Investment Forum in Rabat, highlighting a strong commitment to fostering innovation and job creation across the continent.
The fund’s key investors include the African Development Bank (AfDB), EIB Global supported by the European Union through the ACP Trust Fund, and Boost Africa, among others. The fund focuses on sectors such as climate tech, financial inclusion, and digital innovation.
With $50 million in commitments towards its $80 million target, Seedstars Africa Ventures I aims to create over 10,000 formal jobs and bridge financing gaps in Africa’s underserved startup ecosystem. The fund provides early-stage financing 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 not only unlocks co-investment opportunities but also offers startups operational support.
Earlier this year, Seedstars Africa Ventures attracted $10.5 million from the African Development Bank to support high-growth startups, with a goal of creating nearly 9,000 jobs, 50% of which are reserved for women.
The fund is already delivering on its promise, having deployed $10 million into five pioneering startups in sectors ranging from cleantech to financial inclusion. These startups collectively serve over 60 million people across eight African countries and include:
- Beacon Power Services (Nigeria): A cleantech innovator improving electricity access for millions.
- Poa! Internet (Kenya): Offering affordable broadband to over 60,000 households.
- Xeno (Uganda): Providing sustainable financial products for attractive savings.
- Bizao (Côte d’Ivoire, Senegal, France): Delivering cutting-edge payment aggregation solutions.
- Shamba Pride (Kenya): Supporting nearly 300 franchised shops to empower farmers with tools, insights, and training.
The portfolio has connected 60,000 households to the Internet, supported 50,000 farmers, and empowered 30,000 people with financial services.
Seedstars Africa Ventures I is led by founders Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, whose collective 45 years of investment experience underscore the fund’s expertise. The fund has also prioritized gender equity, with its portfolio fully aligned with 2X Challenge criteria to empower women entrepreneurs and professionals.
Investors such as the AfDB and EIB have emphasized the fund’s role in advancing digital transformation and financial inclusion. “Seedstars Africa Ventures is a strategic opportunity to enhance risk capital access, 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, added,
We are committed to accelerating digitalization and supporting African businesses driving innovation and prosperity.
Seedstars Africa Ventures I’s $42 million milestone is a testament to Africa’s growing prominence in global investment circles. By addressing critical funding gaps, the fund is not only nurturing high-growth startups but also driving socio-economic transformation across the continent.
