Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage investments in scalable African startups, has achieved its first close at $42 million. This milestone reflects significant contributions from global investors, including the African Development Bank, EIB Global, and the European Union’s ACP Trust Fund through the Boost Africa initiative.
The announcement was made during the 2024 Africa Investment Forum Market Days in Rabat, with both the African Development Bank and the European Investment Bank (EIB) playing key roles as founding partners of the Africa Investment Forum. This platform advances transformative projects across Africa, driving innovation and economic growth.
Seedstars Africa Ventures I targets early-stage financing gaps, with investments of up to $2 million in seed and Series A rounds and follow-on support of up to $5 million. This approach bridges the capital gap while catalyzing co-investment opportunities and providing operational support to startups. The fund, founded by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, brings over 45 years of combined investment experience on the continent. It operates under the umbrella of LBO France Group, a key initial supporter of the initiative.
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To date, the fund has deployed over $10 million to five innovative startups spanning sectors like climate, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure. These businesses, including Poa! Internet in Kenya and Xeno in Uganda, serve over 60 million individuals across eight African countries. Notably, the portfolio aligns with the 2X Challenge, empowering women in the entrepreneurial ecosystem.
The African Development Bank emphasized the fund’s strategic role in improving access to finance for youth and women, particularly in Francophone Africa, a region historically underserved by risk capital. EIB Vice-President Ambroise Fayolle reaffirmed the bank’s commitment to supporting African businesses driving digitalization, innovation, and prosperity.
Seedstars Africa Ventures aims to secure an additional $50 million toward its $80 million fundraising target, reinforcing its mission to empower startups that foster transformative impacts and economic growth on the continent.
