CAPSA Capital Partners has unveiled a $15 million investment initiative under its specialized investment fund (FIS) “NEXT CAP FUND.” The fund, which comprises two compartments — FIS NEXT CAP 1 and FIS NEXT CAP 2 — aims to support Tunisian startups with high growth potential while promoting economic development in the region.

The NEXT CAP FUND is structured to operate across two compartments with distinct capital raising targets and investment strategies:

• FIS NEXT CAP 1 seeks to raise $4.1 million. With a focus on startups exhibiting significant Tunisian roots — defined as having at least 50% of their workforce based locally — it will provide initial investments of up to $320,000 per company. For follow-on funding, this amount could increase to $544,000, pending approval by the Strategic Committee. This compartment has a 10-year lifespan, extendable twice by one year.
• FIS NEXT CAP 2 aims to secure $12.2 million in euro-equivalent capital. Designed for a broader investment scope, it offers initial funding of up to $288,000 per company, with potential follow-on investments reaching $480,000. Like its counterpart, this compartment has a similar operational timeline.

Both compartments function as independent entities with distinct governance structures and accounting systems. CAPSA Capital Partners manages the funds, while the Arab Tunisian Bank (ATB) serves as the custodian and distributor, enhancing credibility and investor confidence.

The NEXT CAP FUND targets long-term commitments as minority shareholders, working closely with startups to structure exit strategies and ensure alignment with business objectives. The fund prioritizes companies with a strong Tunisian identity and scalable business models.

Each prospectus, approved by Tunisia’s Financial Market Council (CMF) on November 26, 2024, provides comprehensive details on the investment criteria, associated risks, and potential returns.

Established in 2012, CAPSA Capital Partners has been a prominent player in private equity in Tunisia. Under the leadership of Habib Karaouli and Thameur Chagour, CAPSA specializes in non-listed SMEs, offering investments ranging from $320,000 to $2.72 million, with a strong emphasis on environmental, social, and governance (ESG) standards.

The firm has successfully invested in transformative startups, including:

• AVIDEA: A Tunisian tech company focusing on digitizing automobile claims and fraud prevention. CAPSA’s funding, alongside 216 Capital, has enabled AVIDEA to expand its team, enhance product capabilities, and explore new markets.
• Enova Robotics: A pioneer in robotics technology, Enova secured $1.6 million from CAPSA Capital Partners to scale its operations and strengthen its product offerings in the competitive robotics landscape.

This $15 million fund comes at a critical juncture for the Tunisian startup ecosystem. With a focus on early- to growth-stage investments, the NEXT CAP FUND is poised to address the significant funding gaps faced by local entrepreneurs. By fostering innovation and enabling access to resources, CAPSA is helping shape Tunisia’s economic future.

The involvement of the Arab Tunisian Bank as a custodian indicates the fund’s credibility, providing investors with an added layer of security. The initiative has been lauded for its potential to drive growth, particularly in technology-driven sectors, aligning with global trends in venture capital.

With a track record of impactful investments and a clear strategic vision, CAPSA Capital Partners continues to reinforce its position as a cornerstone of Tunisia’s investment landscape. The NEXT CAP FUND is expected to catalyze substantial growth, offering startups the financial and strategic backing necessary to thrive in an increasingly competitive global market.