When Meriam Bessa, co-founder of the Moroccan startup Hypeo AI, met an investor from Renew Capital in June, it wasn’t through a cold email or a lucky introduction. The meeting was brokered at an event in Morocco hosted by Plug and Play, the Silicon Valley innovation platform famous for its early bets on Google and PayPal. Bessa’s experience is becoming increasingly common as Plug and Play methodically expands its operations across North Africa, positioning itself as a central node in the region’s burgeoning tech ecosystem.
The firm’s influence is moving beyond one-off deals and events. In the past few months alone, Plug and Play has launched major, structured initiatives in Tunisia and Morocco, signaling a long-term strategy to wire the region into its global network of startups, corporations, and investors.
New Plays in Tunisia and Morocco
Just this week, the Tunisian startup scene received a significant boost with the announcement of the 216 Capital Venture Accelerator. A strategic partnership between Plug and Play Africa and local VC firm 216 Capital, the program aims to tackle key hurdles for Tunisian founders: investment readiness and international market access.
Set to open for applications on September 29, the accelerator will select up to 60 startups across three cohorts, providing an average investment of 50,000 from an initial fund of at least 3 million. The program’s core objective is to prepare high-potential startups for fundraising and connect them to Plug and Play’s global network, which includes over 250 venture capital funds and 800 corporate partners.
This follows a similar high-profile move in June, when Plug and Play partnered with the state-backed Technopark Morocco to launch a new accelerator. Backed by Morocco’s Ministry of Digital Transition and Administrative Reform, the initiative is a key component of the country’s ‘Maroc Digital 2030’ strategy.
“By partnering with a leading player like Plug and Play, we are creating concrete opportunities for Moroccan startups to expand internationally,” said Amal El Fallah Seghrouchni, Minister Delegate in charge of Digital Transition, at the time of the launch.
A Different Kind of Accelerator
Plug and Play’s rapid expansion is built on a model that differs from traditional accelerators like Y Combinator. Diego Arias, an investor at Plug and Play who helped set up its Cairo office, describes it as a combination of three interconnected functions: corporate innovation, acceleration, and venture capital.
Crucially, the accelerator programs are free for startups and do not require them to give up equity. The costs are covered by corporate partners — such as OCP Group in Morocco or the National Bank in Egypt — who pay Plug and Play to connect them with relevant startups and cutting-edge technology.
“We help connect corporate partners with startups, and we help them access and de-risk innovation,” Arias explains. “This is how corporate innovation connects to the accelerator aspect.”
This corporate-funded model gives Plug and Play the flexibility to work with startups at various stages, from early-stage companies to more mature Series B businesses looking to enter a new market. The firm’s venture arm then has the option to invest in the most promising companies that have been validated through the accelerator and by its corporate partners.
The Ecosystem Builder
Plug and Play’s investment strategy is high-volume. The firm made 18 deals in Africa in 2022 and invests globally in 200–300 companies per year. It typically doesn’t lead funding rounds, preferring to co-invest alongside other VCs. With an average ticket size of $100,000–150,000, its role is often to fill out a round and lend its significant network to the startup’s advantage.
Arias insists the goal is to be an “ecosystem builder.” By strengthening the local startup scene, Plug and Play enhances its own value proposition to its corporate clients. “We’re actually de-risking our own future by helping startups expand to new places,” he says.
This approach involves more than just funding. The firm actively helps portfolio companies with market expansion and facilitates collaboration between them. “When investing in a company that does KYC, we’re also going to look for fintech companies that require KYC services and can integrate with this portfolio company,” Arias notes. “It’s a way of double-betting and vetting.”
The strategy appears to be region-wide, not limited to the Maghreb. The firm recently participated in a funding round for FinCart.io, an Egyptian e-commerce logistics platform, and has an established office in South Africa focused on sustainability and shelter tech.
The Question of Lasting Impact
The influx of a global player with the pedigree of Plug and Play is a clear validation of North Africa’s potential. The partnerships with government bodies in Morocco and established VCs in Tunisia provide a level of credibility and structure that can accelerate ecosystem maturity.
However, observers note that the ultimate challenge remains translating these connections into sustainable, scalable businesses. While Plug and Play provides a crucial bridge to international markets and investors, foundational issues like later-stage funding and talent retention persist.
The question is whether global platforms like Plug and Play will invest deeply enough and for long enough to help foster a generation of breakout success stories. For now, the deal-making activity is accelerating, and for founders across North Africa, the Silicon Valley connector is becoming an increasingly important player on the map.