Tunisia’s state-backed fund of funds, ANAVA, spent $835,000 (approximately €716,000) on management expenses in the 2024 financial year, according to its recently published financial statements. The figure provides a rare look into the operational cost of a government-led initiative designed to catalyse the country’s startup ecosystem.

Managed by Smart Capital, the ANAVA initiative is a cornerstone of Tunisia’s strategy to bolster its tech scene. It operates as a fund of funds, meaning it doesn’t invest directly in startups but instead allocates capital to venture capital (VC) firms that do.

The latest accounts show the fund is growing. Its net assets increased to $18.8 million (€17.6 million) in 2024, up from $12.6 million (€11.6 million) the previous year, following a capital injection of $6.2 million (€5.8 million). However, its net profit declined to $233,000 (€213,000) from $625,000 (€565,000) in 2023.

Dissecting the Financials

For a fund of funds like ANAVA, annual profit is not the primary objective. The core mission is to deploy capital into the ecosystem and generate returns over the typical 10-year life cycle of a VC fund, which relies on successful startup “exits” (like an acquisition or IPO).

ANAVA’s revenue for 2024 stood at $1.02 million (€951,000), derived entirely from unrealised gains on its investments in two VC funds: a $310,000 (€285,000) gain from Badia Impact Squared and a $1.09 million (€991,000) gain from 216 Capital Fund I.

Conversely, the fund recorded unrealised capital losses totalling $390,000 (€365,000) on its most recent investments in Titan Seed Fund I, Janngo Capital Startup Fund, and Go Live International Fund. Such accounting losses are common in the early stages of a fund’s life before portfolio companies have had time to grow and increase in value. The true performance of these investments will only become clear once the funds mature and begin to exit their positions.

With management expenses holding steady at $835,000 (€716,000) and no investment income currently being generated, the fund reported an operating income of $106,000 (€98,000) for the year.

The Engine Room of Tunisian VC

The ANAVA initiative, initially backed by a $60 million commitment, is supported by a consortium of major financial and governmental bodies, including Tunisia’s Caisse des Dépôts et Consignations (CDC), the German development bank KfW, and the World Bank.

Its strategy is to build a diversified portfolio of VC managers. To date, ANAVA has committed $49.2 million (€45 million) to 10 separate funds. Seven of these are focused solely on Tunisia, while three are pan-African, extending ANAVA’s reach across the continent.

The portfolio includes a mix of local and regional players:

• 216 Capital Ventures: A Tunis-based fund focused on early-stage local startups.
• MEDIN Fund Management: Manages the TITAN SEED FUND I, offering investments in both local and foreign currency.
• Janngo Capital: A pan-African fund founded by Fatoumata Bâ, which recently closed a $84 million (€78 million) fund to back tech startups across the continent.
• LoftyInc Capital: A Nigerian-founded firm that supports tech entrepreneurs in key sectors like fintech and software, with notable investments including Flutterwave.
• Flat6Labs: A prominent MENA-focused seed investor, now deploying a $95 million fund.
• Silicon Badia: An international firm investing in technology companies across the MENA region.

A Pan-African Footprint

While its mandate originates in Tunisia, ANAVA’s influence is intentionally cross-border. The capital deployed through its partner funds has reached 45 startups across 12 African countries, including Nigeria, Senegal, Egypt, Ivory Coast, and Kenya. This regional approach allows Tunisian startups to integrate into larger African markets and gives the fund exposure to high-growth ecosystems beyond its borders.

Looking ahead, ANAVA aims to increase its total funding pool to $108 million (€100 million). It is also launching DEAL 2.0, an investment readiness programme to prepare over 200 startups for funding, with plans to directly finance 80 of them with tickets ranging from $55,000 (€50,000) to $7.7 million (€7 million).

For now, the $835,000 annual operating cost is the price of constructing and managing this complex network. The long-term test for ANAVA will be whether this state-backed infrastructure can deliver on its promise: generating sustainable returns and cementing Tunisia’s position as a significant hub in Africa’s venture capital landscape.

ANAVA’s latest financial report reveals annual management costs of $835,000 (€716,000). While the fund of funds posted a small profit, its real success will be measured not in yearly returns, but by its long-term ability to cultivate a thriving venture capital ecosystem in Tunisia and beyond.