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Seedstars Africa Ventures I Achieves $42 Million First Close to Support African Startups

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Seedstars Africa Ventures I Achieves $42 Million First Close to Support African Startups

Seedstars Africa Ventures I, a venture capital fund dedicated to early-stage startups in Africa, has reached a landmark $42 million first close.

This milestone, announced during the 2024 Africa Investment Forum in Rabat, highlights the growing commitment to fostering innovation, financial inclusion, and job creation across the continent.

Key investors in the fund include the African Development Bank (AfDB), EIB Global, supported by the European Union through the ACP Trust Fund, and Boost Africa.

The fund is targeting $80 million in total commitments, of which $50 million has already been secured.

Its focus areas include climate tech, financial inclusion, and digital innovation, to create over 10,000 formal jobs and address financing gaps in Africa’s underserved startup ecosystem.

Seedstars Africa Ventures I provides funding of up to $2 million for seed and Series A rounds, with follow-on investments of up to $5 million.

Earlier this year, the African Development Bank contributed $10.5 million to the fund, aiming to support high-growth startups and create nearly 9,000 jobs, half earmarked for women.

The fund is already delivering results, deploying $10 million into five innovative startups across sectors such as cleantech and financial inclusion.

These startups collectively serve over 60 million people in eight African countries, including:

  • Beacon Power Services (Nigeria): A cleantech company improving electricity access for millions.
  • Poa! Internet (Kenya): Providing affordable broadband to over 60,000 households.
  • Xeno (Uganda): Offering sustainable financial products for savings.
  • Bizao (Côte d’Ivoire, Senegal, France): Delivering payment aggregation solutions.
  • Shamba Pride (Kenya): Empowering farmers through nearly 300 franchised shops offering tools, insights, and training.

Through these ventures, the fund has connected 60,000 households to the internet, supported 50,000 farmers, and empowered 30,000 individuals with financial services.

The fund is led by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, who bring 45 years of combined investment experience.

Seedstars Africa Ventures I is also committed to gender equity, aligning its portfolio with the 2X Challenge criteria to empower women entrepreneurs and professionals.

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