Home News Seedstars Africa Raises $30 Million for Pan-African Fund

Seedstars Africa Raises $30 Million for Pan-African Fund

Seedstars' new fund will target Francophone Africa.

By Inc.Arabia Staff
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Seedstars Africa Ventures has secured a $30 million capital injection from EIB Global, an arm of the European Investment Bank (EIB).[1]

This represents the first significant institutional investment for the venture firm's inaugural pan-African capital fund. The fund's anchor investor, LBO France, previously provided $8 million for the fund.

Seedstars Africa Ventures has set its sights on finalizing the fund between $80 million and $100 million, with a focus is to backing seed and Series A startups and follow-on funding up to Series B.

The VC firm's partners, Bruce Nsereko-Lule, Tamim El Zein, and Maxime Bouan, worked with Seedstars Group, an emerging markets accelerator, to launch the fund by utilizing the infrastructure and market access that Seedstars provided.

The increased fund size—which is noteworthy for Africa—is expected to provide financing that is ideal for business needs. Seedstars Africa Ventures aims to bridge funding gaps in regions beyond Egypt, Kenya, Nigeria, and South Africa quartet. Seedstars Africa Ventures intends to invest $250,000 to $2 million in the first round of up to 30 startups, with follow-on funding of up to $5 million.

The company says it welcomes tech startups and isn't afraid to support creative brick-and-mortar companies that are benefiting from digitization.

Up to 50% of the fund will go toward Francophone Africa, which Seedstars Africa Ventures has identified as an investment hotspot because of its substantial market prospects, lack of competition, and attractive deals when compared to more developed Anglophone countries.

Seedstars Africa Ventures has invested before in Poa Internet in Kenya, Beacon in Nigeria, the agritech Shamba Pride, and the fintech Bizao.


CORRECTION: An earlier version of this article said that Seedstars Africa launched a $30 million fund. Seedstars has raised $30 million for its forthcoming pan-African fund. 

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