In a significant boost to Africa’s venture capital landscape, Seedstars Africa Ventures I, an early-stage venture capital fund focused on scalable African startups, announced the first close of its fundraising round at $42 million. The milestone was revealed during the 2024 Africa Investment Forum Market Days, a flagship event dedicated to advancing transformative projects across the continent.
The fund, which has offices in Nairobi, Dakar, and Paris, has secured commitments totaling $50 million toward its $80 million fundraising target. The initiative has drawn support from prominent investors, including the African Development Bank (AfDB) and EIB Global, the development arm of the European Investment Bank (EIB), with backing from the European Union (EU) under the ACP Trust Fund — EU Compartment and the Boost Africa program.
Seedstars Africa Ventures I aims to address critical gaps in early-stage financing for African startups, targeting investments of up to $2 million in seed and Series A rounds, with follow-on investments of up to $5 million. The fund’s strategy extends beyond providing capital, actively supporting portfolio companies with operational expertise and catalyzing co-investment opportunities.
The fund’s focus areas include climate resilience, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure — sectors vital to the continent’s sustainable development.
Founded by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, Seedstars Africa Ventures draws on a combined 45 years of investment experience in Africa. The initiative operates as a part of the LBO France Group, a Paris-based private equity firm that played a key role in seeding the fund.
LBO France Chairman Robert Daussun and CEO Stéphanie Casciola praised the fund’s progress, highlighting its innovative portfolio and transformative impact. “Seedstars Africa Ventures is at the forefront of Africa’s growth story, providing solutions to challenges that are pivotal for the continent’s economic and social advancement,” they said in a joint statement.
The fund has already deployed $10 million to five startups operating across eight African countries, collectively serving over 60 million people. These businesses contribute to key development goals, including connecting 60,000 households to broadband internet, supporting 50,000 farmers, and empowering 30,000 individuals with financial inclusion services.
Notably, the portfolio adheres to the 2X Challenge criteria, focusing on gender equity by empowering women-led startups and fostering inclusive ecosystems.
Portfolio Highlights:
- Beacon Power Services (Nigeria): A leading cleantech company enhancing electricity access across Africa.
- Poa! Internet (Kenya): A broadband internet provider delivering affordable connectivity to over 60,000 households.
- Xeno (Uganda): Developer of innovative savings products tailored to African financial markets.
- Bizao (Côte d’Ivoire, Senegal, France): Provider of advanced payment aggregation solutions for corporates and fintechs in Francophone Africa.
- Shamba Pride (Kenya): Operator of a franchise network supporting farmers with products, insights, and training.
Backing from Institutional Investors
The African Development Bank emphasized the fund’s potential to catalyze Africa’s venture capital industry. Ahmed Attout, AfDB’s Director for Financial Sector Development, noted the fund’s role in improving access to finance for underrepresented groups, particularly youth and women, while addressing a lack of risk capital in Francophone Africa.
EIB Vice-President Ambroise Fayolle also highlighted the strategic importance of digitalization for Africa’s future. “Accelerating innovation and prosperity through digital transformation is a key priority for the EIB, and our support for Seedstars Africa Ventures aligns with this vision,” he said.
As a founding partner of the Africa Investment Forum, the African Development Bank continues to champion initiatives like Seedstars Africa Ventures, which provide transformative opportunities for entrepreneurs across the continent. The fund’s achievements mark a pivotal step toward unlocking Africa’s entrepreneurial potential, fostering inclusive growth, and attracting global investment to the region.
Seedstars Africa Ventures I represents a robust commitment to empowering Africa’s next generation of innovators and businesses, reinforcing the continent’s role as a hub for global innovation and investment.