Paris- and Nairobi-based venture capital firm, Seedstars Africa Ventures, has successfully closed a substantial $30 million capital commitment from EIB Global.
Paris- and Nairobi-based venture capital firm, Seedstars Africa Ventures, has successfully closed a substantial $30 million capital commitment from EIB Global , a branch of the European Investment Bank, marking a significant milestone as the first major institutional investment for its inaugural pan-African venture capital fund.
Earlier, the fund secured an $8 million investment from its anchor investor, French private equity firm LBO France. With a target range between $80 million and $100 million, the fund is poised to support seed and series A startups, extending to Series B in subsequent investments.
Seedstars Africa Ventures plans to allocate the capital by making initial investments ranging from $250,000 to $2 million, with follow-on funding of up to $5 million in up to 30 startups. Entrepreneurs backed by the fund will gain access to Seedstars’ extensive tools, networks, and visibility.
According to the venture capital firm, the fund aims to provide capital tailored to the specific needs of entrepreneurs in Africa, addressing funding gaps in regions beyond the more established markets of Egypt, Kenya, Nigeria, and South Africa. Additionally, Seedstars Africa Ventures will offer operational and business support to founders, focusing on startups in sectors such as education, healthcare, utilities, and efficiency improvements.
One notable aspect of the investment strategy is the plan to allocate up to 50% of the fund in Francophone Africa. This region, characterized by lower competition, vast market opportunities, and attractive deal terms, continues to draw the attention of emerging venture capitalists.
Launched by partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule alongside the Seedstars Group, the Seedstars Africa Ventures fund has already made significant investments in four businesses: Poa Internet, Kenya’s internet service provider; Beacon, Nigeria’s grid management SaaS for electricity distribution utilities; Shamba Pride, Power Services agritech; and Bizao, a payments company. With the infusion of the new funding, the venture capital firm is poised to accelerate its investment activities.
Maxime Bouan, Founding Partner at Seedstars Africa Ventures, emphasized the team’s commitment to providing crucial capital beyond the acceleration stage. He stated, “When the team launched in 2020, there was very little capital available beyond acceleration, so there was a clear need to provide more capital at this stage. The team wanted to be pan-African from the onset and be able to provide hands-on support to portfolio companies through a targeted early-stage investment strategy.”
Seedstars Africa Ventures sees its collaboration with Seedstars as a win-win opportunity to build a complementary post-acceleration fund, leveraging existing resources and market access to strengthen the continuum of capital. This approach aims to offer different types of funding suited to entrepreneurs’ maturity, catalyzing both international and local follower investor capital.
As the Seedstars Africa Ventures fund gains momentum with this substantial capital injection, it is poised to play a pivotal role in supporting and nurturing the growth of innovative startups across the African continent.