Seedstars Africa Ventures I, a venture capital fund dedicated to supporting early-stage African startups, has achieved a significant milestone by reaching a $42 million first close. This accomplishment was announced at the 2024 Africa Investment Forum in Rabat, highlighting a growing commitment to fostering innovation and job creation across the continent.
Key investors in Seedstars Africa Ventures I 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 key areas 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 operational support to startups.
Earlier this year, Seedstars Africa Ventures secured $10.5 million from the African Development Bank to support high-growth startups, with a goal of creating nearly 9,000 jobs, with 50% reserved for women. The fund has already deployed $10 million into five pioneering startups in sectors such as cleantech and financial inclusion, serving over 60 million people across eight African countries.
Some of the startups supported by Seedstars Africa Ventures include Beacon Power Services in Nigeria, Poa! Internet in Kenya, Xeno in Uganda, Bizao in Côte d’Ivoire, Senegal, and France, and Shamba Pride in Kenya. These startups have made a significant impact by connecting households to the Internet, supporting farmers, and empowering people with financial services.
The founders of Seedstars Africa Ventures I, Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, bring a collective 45 years of investment experience to the fund, showcasing their expertise in the field. The fund also prioritizes gender equity, with its portfolio aligned with 2X Challenge criteria to empower women entrepreneurs and professionals.
Investors such as the AfDB and EIB have recognized the fund’s role in advancing digital transformation and financial inclusion in Africa. Seedstars Africa Ventures I’s $42 million milestone highlights Africa’s increasing prominence in global investment circles, demonstrating its commitment to nurturing high-growth startups and driving socio-economic transformation across the continent.
