Seedstars International Ventures II announces first close
Seedstars launched its second emerging market seed stage fund, Seedstars International Ventures II. The firm announced the first close of the fund with $20 million committed by notable investors including the International Finance Corporation (IFC), Visa Foundation, The Rockefeller Foundation, and Symbiotics.
Since 2013, Seedstars has supported over 90 emerging market venture ecosystems, seeing firsthand how the founder talent pool has matured with 2,070 VC-backed startups in 2021 in its core markets versus just over 560 in 2017. Seedstars will leverage this progress and invest in 100 pre-seed and seed stage companies across Asia, Africa, MENA, and LATAM in the next three years. Investments will be focused on companies building for the future of finance, commerce, health, work and education, with follow-on investments up to series A.
The predecessor fund invested in 81 companies in over 30 countries, with category-leading investments in all regions including Dastgyr (Pakistan, backers include Veon and SOSV), Foodics (MENA, backers include Sequoia and Prosus), MyRobin (Indonesia, backers include Accion Venture Lab and Antler), OlaClick (LATAM, backers include Meta and Google/Gradient) and Omnibiz (Nigeria, backers include Musha Ventures and LoftyInc Capital), among others.
Charlie Graham-Brown, a partner at Seedstars commented, “I have no doubt about the abundance of talented founders or the market opportunities, but the challenges can’t be ignored. Our strategy innovates on so many levels to mitigate risk, be it through our country diversification, portfolio construction strategy, value creation platform, or the blended finance structure. We have a unique recipe, an incredible team, and backers in place to build on the success of the first fund and level the playing field for tech entrepreneurs around the world.”
The fund is co-anchored by four partners: International Finance Corporation (IFC), Visa Foundation, The Rockefeller Foundation and Symbiotics.
IFC, a member of the World Bank Group, the largest global development institution focused on the private sector in emerging markets, co-anchored the fund. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic.
Aligned with its goal to support inclusive economies where individuals, businesses, and communities can thrive, Visa Foundation has contributed to the Seedstars fund. Najada Kumbuli, head of investments, shares, “Visa Foundation is proud to partner with Seedstars as they provide capital and technical assistance to businesses at the catalytic stage of their journeys.”
The Rockefeller Foundation’s commitment came through the Zero Gap Fund (ZGF), an impact fund launched in partnership with the John D. and Catherine T. MacArthur Foundation and its flagship Catalytic Capital Consortium. ZGF deploys patient capital into promising, impact-driven financial strategies and mechanisms that seek to catalyse large-scale private investment in advancing the UN Sustainable Development Goals (SDGs) to address the world’s biggest challenges.
Finally, the fund is supported by Symbiotics, a market access platform for impact investing, dedicated to private markets in emerging and frontier economies. Since 2005, Symbiotics has originated over 6,600 investments representing more than $6.9 billion for 524 companies in 93 countries.
In addition to the four co-anchors, the fund is backed by a number of serial entrepreneurs, angel investors and family offices bringing significant tech and emerging market know-how to the consortium.
Seedstars is also set to formally debut Seedstars Capital, a fund platform for multiple regional and thematic funds. The platform’s first strategies include Seedstars International Ventures and Seedstars Africa Ventures with more funds set to be announced shortly.
Get the most from the Africa Private Equity News app by registering a free account. Go to the app home screen and tap the round orange icon in the top-right of your screen.