The organization announced the launch of the Digital Africa Seed Fund (DASF), a €30 million fund designed to support promising African tech startups that have moved beyond the idea stage but still struggle to attract larger institutional investors.

The fund was introduced as part of broader efforts to strengthen financing pathways for African innovators and build a stronger pipeline of venture-backed companies across the continent.

Digital Africa said the new fund will focus on startups operating in 20 priority African markets, with plans to invest in around 30 companies over the coming years.

Initial investments are expected to average about €300,000 per startup, though the fund has the capacity to scale up to a hard cap of €50 million.

The launch comes at a time when African startups continue to face funding pressures despite the continent’s growing reputation as a hub for innovation.

While early-stage entrepreneurship has expanded rapidly in sectors such as fintech, healthtech, logistics, climate tech, and agritech, many startups still struggle to secure funding between the pre-seed and Series A stages.

Investors often view companies in this phase as too risky, leaving founders stuck in what many in the venture capital ecosystem describe as the “missing middle.”

Digital Africa believes the new fund can help close that gap.

“There is no shortage of entrepreneurial talent across Africa,” the organization said in a statement announcing the fund.

“The challenge has been ensuring that strong startups can access the right capital and support early enough to reach the next level.”

The DASF builds on the foundation created by Fuzé, Digital Africa’s earlier pre-seed financing initiative.

Through Fuzé, startups received investments ranging from €20,000 to €100,000 during the earliest phases of their development, including product testing and prototype building.

The program has already deployed €10 million across African startups operating in underserved ecosystems.

According to Digital Africa, lessons from Fuzé revealed a major structural challenge in the African startup ecosystem.

Many startups were able to build products and attract early users, but lacked the financial runway, operational systems, and investor confidence needed to progress toward larger funding rounds.

The new seed fund is intended to tackle those challenges by combining financing with operational support aimed at reducing business risks for startups.

In addition to capital, the initiative will help founders strengthen governance, improve execution, recruit talent, and prepare for future fundraising rounds.

Grégoire de Padirac, Director General of Digital Africa, described the fund as a critical addition to the organization’s existing startup support ecosystem.

“I am happy to see this new fund finally complement our existing Fuzé mechanism and contribute to the emergence of future African champions, especially in ecosystems where they are least expected,” he said.

The fund is also part of a broader financing continuum involving Digital Africa, Fuzé, Proparco, and institutional partners.

The idea is to create a more connected support system that allows startups to move from concept stage to regional expansion without repeatedly falling into funding gaps.

Digital Africa said one of the key advantages of the model is the knowledge gathered through its earlier engagement with founders.

Startups entering the DASF pipeline are likely to already have a relationship with the organization through Fuzé, allowing investors to better understand the founding teams, markets, and business models before committing larger investments.

The DA Seed Fund is expected to operate over 10 years as Digital Africa works to identify and support what it believes could become the continent’s next generation of technology champions.