Seedstars Africa Ventures, a leading venture capital firm focused on supporting early-stage African startups, has received a significant capital injection of $30 million from EIB Global, a subsidiary of the European Investment Bank. This investment, following an initial commitment from LBO France, will enable the firm to expand its investment activities and provide crucial support to entrepreneurs across the continent.
The Seedstars Africa Ventures I fund, with a target size of $80-100 million, will utilize this funding to invest in seed and Series A startups, with the potential for follow-on investments up to Series B. This will address a critical funding gap for many African startups, particularly those operating outside of established investment hubs.
Recognizing the unique needs of African entrepreneurs, the fund will provide not only financial capital but also valuable operational and business support. This includes access to Seedstars’ extensive network, resources, and mentorship programs.
The fund will prioritize investments in companies that leverage technology to improve products, services, and efficiency, with a particular focus on sectors such as healthcare, education, and utilities. Notably, the fund aims to allocate up to 50% of its capital to Francophone Africa, recognizing the significant growth potential and relatively lower competition in this region.
This investment by EIB Global further solidifies its commitment to supporting the growth of the African entrepreneurial ecosystem. This partnership with Seedstars Africa Ventures will play a crucial role in fostering innovation, creating jobs, and driving economic development across the continent.
