Seedstars Africa Ventures I announces first close
Seedstars Africa Ventures I has achieved a first close of $42 million.
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Seedstars Africa Ventures I, a venture capital fund making early-stage investments in highly scalable start-ups in Africa, has achieved a first close of $42 million. Investors include the African Development Bank and EIB Global, among other global backers.
The fund, with an $80 million fundraising target, has offices in Nairobi, Dakar and Paris.
Seedstars Africa Ventures I is addressing gaps in early-stage financing across Africa through investments of up to $2 million in seed and series A rounds, with follow-on capacity of up to $5 million, thereby bridging available pools of capital.
The fund was founded by Maxime Bouan, Tamim El Zein and Bruce Nsereko Lule. Seedstars Africa Ventures is a member of LBO France Group.
“The African Development Bank views Seedstars Africa Ventures as a strategic opportunity to provide innovative support to Africa’s venture capital industry. It serves as a conduit to improve access to finance for youth and women while also enhancing the availability of risk capital in Francophone Africa. This is an area that has traditionally faced limited access to risk capital,” said Ahmed Attout, African Development Bank Group director for financial sector development.
“We welcome the investment of the African Development Bank, our Boost Africa partners, in the Seedstars Africa Ventures fund,” said EIB vice-president Ambroise Fayolle. “Accelerating digitalisation is a priority for the EIB, and we are committed to supporting African businesses as they drive innovation and prosperity on the continent.”
The fund has already deployed over $10 million to five African startups in the climate, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure sectors.
The five companies are:
Beacon Power Services (Nigeria): A cleantech company, which provides electricity access to millions of Africans.
Poa! Internet (Kenya): The business offers broadband internet for just $10 per month to over 60,000 households.
Xeno (Uganda): A provider of disruptive financial products offering sustainable and attractive savings alternatives.
Bizao (Côte d'Ivoire, Senegal, France): The company addresses demand for high-performing payment aggregation platforms from major corporates and fintechs in Francophone Africa.
Shamba Pride (Kenya): An operator of nearly 300 franchised shops that deliver products, insights, and training to farmers to address significant bottlenecks in the agricultural value chain.
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