Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage investments in scalable African startups, has announced the first close of $42 million. This milestone was unveiled during the ongoing 2024 Africa Investment Forum Market Days in Rabat, an event co-founded by the African Development Bank (AfDB) and the European Investment Bank (EIB).
Key Backers and Fundraising Progress
Institutional investors, including the African Development Bank (AfDB), EIB Global (backed by the European Union), the ACP Trust Fund – EU Compartment, and Boost Africa, joined other global investors to support the fund. Seedstars Africa Ventures I has also secured an additional $50 million in commitments, putting it on track to achieve its $80 million fundraising target. The fund operates from Nairobi, Dakar, and Paris.
Bridging Early-Stage Financing Gaps
Seedstars Africa Ventures I focuses on addressing critical early-stage financing gaps in Africa by investing up to $2 million in seed and Series A rounds, with a follow-on capacity of up to $5 million. The fund catalyzes co-investments and offers operational support to startups, aiming to scale innovation across the continent.
So far, the fund has deployed over $10 million into five pioneering startups, impacting diverse sectors such as climate, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure. Collectively, these startups have reached over 60 million people, connecting 60,000 households to the internet, supporting 50,000 farmers, and empowering 30,000 individuals with financial inclusion services across eight African countries.
Strategic Support for African VCs
Ahmed Attout, Director for Financial Sector Development at the AfDB, described the initiative as a strategic opportunity to bolster Africa’s venture capital industry. “It serves as a conduit to improve access to finance for youth and women while enhancing the availability of risk capital in Francophone Africa,” he noted.
EIB Vice-President Ambroise Fayolle added: “Accelerating digitalization 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’s current portfolio includes five transformative startups:
– Beacon Power Services (Nigeria): A cleantech company advancing electricity access for millions across Africa.
– Poa! Internet (Kenya): Provides affordable broadband internet to over 60,000 households at $10 per month.
– Xeno (Uganda): Offers sustainable financial products and savings solutions tailored for Africans.
– Bizao (Côte d’Ivoire, Senegal, France): Develops payment aggregation platforms for corporates and fintechs in Francophone Africa.
– Shamba Pride (Kenya): Operates nearly 300 franchised shops delivering products, insights, and training to farmers to address agricultural value chain challenges.
Seedstars Africa Ventures’ mission underscores a commitment to fostering innovation and economic growth in Africa by supporting startups that create impactful solutions for the continent.
