Tunisia: Fund of funds invests $5.2m in new VC vehicle

Tunisia-based Smart Capital, the manager of the Anava fund of funds, has invested $5.2 million in the Badia Impact Squared Fund (BIF2), a newly-launched fund targeting regional early-stage, high-growth start-ups, managed by Silicon Badia. The venture capital firm, with offices in the Middle East and the US, invests in early-stage and growth-stage technology firms operating globally.

The BIF2 completed its first closure in October 2020, bringing together the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Dutch Good Growth Fund (DGGF), and Finance in Motion, among other institutional LPs. Anava’s contribution is part of the second close of the fund, in which 15% of its commitment will be given to Tunisia-based start-ups. BIF2 made its initial investment in the Tunisian fintech business Expensya in November 2020, when it co-led the company’s $20 million Series B fundraising.

Anava has a goal size of €100 million (with a first closure of €40 million fully subscribed by Caisse des Dépôts et Consignations) and intends to participate in more than 13 private equity funds.

Silicon Badia CEO Fawaz Zu’bi said, “We regard Anava’s investment in our second regional fund as a crucial strategic step in our efforts to grow our presence in North Africa, which is now solidified to include Tunisia. Our fund has already made its first investment in Tunisia’s thriving innovation environment, where we are enthusiastic and eager to create bridges and invest.”

Smart Capital CEO, Alaya Bettaieb added, “We are thrilled to be able to assist Silicon Badia with their second close. This investment arrives at a key time for Tunisian businesses seeking capital and skills to go beyond the country’s borders. In addition, this partnership will contribute to the diversification and expansion of Anava’s portfolio.”

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