Seedstars Africa Ventures I has secured a significant milestone with the first close of $42 million for its venture capital fund aimed at scaling digital solutions across Africa.
The announcement was made during the 2024 Africa Investment Forum Market Days in Rabat, with major backing from the African Development Bank, EIB Global with EU support, and Boost Africa, among others.
The fund, which operates across multiple African markets from offices in Nairobi, Dakar, and Paris, is now targeting an $80 million fundraising goal, having already attracted $50 million in additional commitments. Seedstars Africa Ventures I will focus on early-stage investments in digital tech startups that provide essential services to underserved populations, with a particular emphasis on driving economic growth and social impact.
Seedstars Africa Ventures I aims to bridge the gap in early-stage financing by making investments of up to $2 million in seed and Series A rounds, and supporting follow-on funding of up to $5 million. By leading subsequent investment rounds, the fund plans to catalyse further co-investment opportunities while providing hands-on operational support to its portfolio companies.
The fund is managed by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, who bring over 45 years of collective experience investing in and supporting ventures across Africa. Seedstars Africa Ventures is part of LBO France Group, which has been instrumental in seeding the initiative as part of its broader African strategy.
Robert Daussun, Chairman of LBO France, expressed excitement over the fund’s success. “We are delighted by Seedstars Africa Ventures’ latest milestone, and proud to have been the initial supporter of the team. The portfolio they’ve built is innovative and transformative, already driving significant impact across the continent. We are proud to be part of Africa’s growth story.”
Seedstars Africa Ventures I has already invested over $10 million in five companies, focusing on sectors such as climate tech, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure. These startups are already making a tangible difference in the lives of millions across Africa, with some of their achievements including providing internet access to 60,000 households, supporting 50,000 farmers, and enabling financial inclusion for 30,000 individuals across eight countries. The fund’s portfolio is also fully aligned with the 2X Challenge, ensuring that its investments are empowering women entrepreneurs and leaders in the tech ecosystem.
Among the five startups that have received investment are:
- Beacon Power Services (Nigeria): A rapidly growing cleantech company providing electricity access to millions of Africans.
- Poa! Internet (Kenya): Offering affordable broadband internet for just $10 per month, connecting over 60,000 households.
- Xeno (Uganda): A fintech company providing sustainable savings products to underserved populations across Africa.
- Bizao (Côte d’Ivoire, Senegal, France): A payments platform serving corporates and fintechs in Francophone Africa.
- Shamba Pride (Kenya): A network of nearly 300 franchised shops delivering products and services to farmers, addressing key challenges in the agricultural value chain.
Speaking on the fund’s impact, Ahmed Attout, Director for Financial Sector Development at the African Development Bank, said, “We view Seedstars Africa Ventures as a strategic opportunity to improve access to finance, particularly for youth and women, while enhancing the availability of risk capital in Francophone Africa, a region that has traditionally struggled with limited access to investment.”
Ambroise Fayolle, Vice-President of the European Investment Bank, echoed these sentiments, highlighting the importance of supporting digitalisation across Africa: “Accelerating digitalisation is a priority for the EIB, and we are committed to supporting African businesses that drive innovation and prosperity on the continent.”
Seedstars Africa Ventures I’s focus on high-impact, digitally-driven businesses aligns with the fund’s mission to foster growth, innovation, and job creation across the continent. The fund is already on track to meet its $80 million target and remains poised to be a key player in Africa’s expanding venture capital landscape.
