Seedstars Africa Ventures I raises $42 million to create 10,000 jobs and support African startups

Seedstars Africa Ventures I, a fund that helps early-stage startups in Africa, just reached an exciting milestone by raising $42 million in its first round of funding.

This announcement was made on Friday, December 6, during the 2024 Africa Investment Forum in Rabat, Morocco. The fund is focused on helping new businesses grow, create jobs, and bring fresh ideas to Africa.

Some of the big investors include the African Development Bank (AfDB), EIB Global (which is supported by the European Union), and Boost Africa. They are focusing on three key areas: climate technology, financial inclusion, and digital innovation. The fund aims to raise a total of $80 million, with $50 million already secured. Their goal is to create over 10,000 formal jobs and fill the funding gaps for African startups that need help to grow.

The fund offers early-stage financing, providing up to $2 million for seed and Series A rounds, with follow-up investments of up to $5 million. This means they help startups grow by providing money and supporting them with guidance to succeed.

Earlier in the year, Seedstars Africa Ventures also secured $10.5 million from the African Development Bank to support startups and create nearly 9,000 jobs, with 50% of those jobs meant for women. The fund is already delivering on its promises by investing $10 million in five exciting startups across Africa. These companies are working in different areas like clean energy, financial services, and the internet, and they are already reaching millions of people across the continent. Some of these startups include:

• Beacon Power Services (Nigeria): Helping millions of people access better electricity.
• Poa! Internet (Kenya): Providing affordable internet to over 60,000 homes.
• Xeno (Uganda): Offering sustainable financial products for savings.
• Bizao (Côte d’Ivoire, Senegal, France): Creating advanced payment solutions.
• Shamba Pride (Kenya): Empowering farmers with tools, insights, and training through nearly 300 shops.

These startups have already connected 60,000 homes to the internet, helped 50,000 farmers, and provided financial services to 30,000 people.

The fund is led by three founders: Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule. Together, they have 45 years of experience in investing. Their focus on gender equality is also important, with a goal to support women entrepreneurs and professionals, and their investments meet the 2X Challenge criteria, which focuses on empowering women.

Ahmed Attout, AfDB’s Director for Financial Sector Development, spoke about the importance of the fund: “Seedstars Africa Ventures is a strategic opportunity to enhance risk capital access, particularly in Francophone Africa, while improving finance availability for youth and women.”

Ambroise Fayolle, Vice-President of the European Investment Bank, also emphasized the impact of the fund: “We are committed to accelerating digitalisation and supporting African businesses driving innovation and prosperity.”

With $42 million raised, Seedstars Africa Ventures I is playing a big role in Africa’s growing presence in the global investment world. By helping new businesses grow and solving key problems, they are helping to change Africa’s future.