Africa Investment Forum 2024: Seedstars Africa Ventures Announces $42M First Close
Seedstars Africa Ventures I, a venture capital fund making early-stage investments in highly scalable start-ups in Africa, has achieved a first close of $42 million, with participation from the African Development Bank and EIB Global –with the support of the European Union, under the ACP Trust Fund – EU Compartment and Boost Africa— among other global investors.
The fund, with offices in Nairobi, Dakar and Paris, has further secured $50 million in commitments towards an $80 million fundraising target.
The milestone was announced at the 2024 Africa Investment Forum Market Days currently underway in Rabat. Both the African Development Bank Group and the European Investment Bank Group are founding partners of the Africa Investment Forum, a platform that advances transformative African projects toward financial close. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance,
Seedstars Africa Ventures I is addressing gaps in early-stage financing across Africa through investments of up to $2 million in seed and series A rounds, with follow-on capacity of up to $5 million, thereby bridging available pools of capital. By leading successive investment rounds, the fund will catalyse co-investment while offering operational support to start-ups.
The Fund was founded by Maxime Bouan, Tamim El Zein and Bruce Nsereko Lule who have over 45 years of experience investing and working across the continent. Seedstars Africa Ventures is a member of LBO France Group, which played a pivotal role in seeding this initiative as part of their multi asset class African strategy, alongside other initiatives.
Robert Daussun and Stéphanie Casciola, Chairman and CEO respectively of LBO France said, “We are delighted by Seedstars Africa Ventures’ latest milestone, and proud to have been the initial supporter of the team. The portfolio the team has built with our support is innovative and transformative, already providing significant impact and value to the continent. LBO France appreciates the opportunity SAV provides for us and our partners to be part of Africa’s growth story.”
“The African Development Bank views Seedstars Africa Ventures as a strategic opportunity to provide innovative support to Africa’s venture capital industry. It serves as a conduit to improve access to finance for youth and women while also enhancing the availability of risk capital in Francophone Africa. This is an area that has traditionally faced limited access to risk capital,” said Ahmed Attout, African Development Bank Group Director for Financial Sector Development.
“We welcome the investment of the African Development Bank, our Boost Africa partners, in the Seedstars Africa Ventures fund,” said EIB Vice-President Ambroise Fayolle. “Accelerating digitalisation 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 has already deployed over $10 million to five pioneering African startups in the climate, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure sectors. These businesses serve over 60 million people, including by connecting 60,000 households to the internet, supporting 50,000 farmers, and empowering 30,000 individuals with financial inclusion services across eight African countries. The portfolio is also fully 2X compliant, empowering women in startups and ecosystems.
The five companies are:
- Beacon Power Services(link is external) (Nigeria): one of Africa’s fastest-growing cleantech companies, which provides electricity access to millions of Africans
- Poa! Internet(link is external) (Kenya): which offers broadband internet for just $10 per month to over 60,000 households
- Xeno(link is external) (Uganda) : provides disruptive financial products offering sustainable and attractive savings alternatives for Africans
- Bizao(link is external) (Cote d’Ivoire, Senegal, France): which addresses demand for high-performing payment aggregation platforms from major corporates and fintechs in Francophone Africa
- Shamba Pride(link is external) (Kenya): an operator of nearly 300 franchised shops that deliver products, insights, and training to farmers to address significant bottlenecks in the agricultural value chain.
