The African Seed Fund, a new $95 million seed fund for the African tech startup ecosystem, has been created by Flat6Labs, the top seed investor in MENA (ASF). This fund is intended to support early-stage ICT firms in Africa as they grow and flourish.
The Africa Seed Fund (ASF) will prioritize investing in the northern, western, and eastern regions of the continent. Ramez El-Serafy and Dina El-Shenoufy, the general partners, will be in charge of it.
Ramez El-Serafy stated, “We are pleased about the Africa Seed Fund.” Technology and innovation investments are lucrative in Africa. Business opportunities exist on the continent. Our experience will help African startup owners build successful companies that can attract outside financing.
Flat6Labs plans to invest US$150K to US$500K in 160 early-stage tech startups (Pre-Seed to Pre-Series A) through the Africa Seed Fund over the next five years. The Flat6Labs Africa Seed Program will give experienced businesses seed tickets separately.
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However, these startups must be concentrated on having an impact that quickens digital inclusion through the use of information technologies and sectors that solve social and environmental issues, such as HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and others.
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About Flat6Labs
Flat6Labs, a company founded more than a decade ago, has made major investments in companies with a focus on technology. Nowadays, it exists in Egypt, Lebanon, Tunisia, Bahrain, Jordan, the United Arab Emirates, and Saudi Arabia, which is a total of seven nations. It supports entrepreneurs in their early stages, from Pre-Seed to Pre-Series A, with a range of investment ticket sizes between US$50K and US$500K.
Flat6Labs has a proven track record of investing in potential North African entrepreneurs across the whole African continent, having invested more than $16 million in firms and raising more than $191 million in follow-on funding. As a result of its first two rounds of funding, over 2,500 direct jobs and 80,000 indirect jobs have been created in Egypt and Tunisia.
Additionally. Flat6Labs is planning a global rollout that will take the company to countries including Nigeria, Ghana, Kenya, Morocco, and Senegal.
African Seed Fund Program
The Africa Seed Fund (ASF) is an initiative launched by Flat6Labs with the backing of the GIZ on behalf of the German Government, the Egyptian Agricultural Innovation Project (AIP), and the Scaling Digital Agricultural Innovations through Startups project (SAIS).
It is projected that with the significant influx of funds from the ASF, more than 14,000 new jobs will be created, more than 1,200 founders with 20% female participation will receive support, and more than $700 million in income might be produced.
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African Seed Fund Program operations
The program helps entrepreneurs grow their enterprises. Seed investment, local business support, seasoned local mentors, and regulatory and logistical support will help selected startups scale. ASF can reinvest in portfolio firms in later rounds.
“The Africa Seed Fund is well-positioned to be a catalyst for generating long-term good change that the youth of Africa actually deserve and for giving resources to the brightest of them while speeding the future of the African continent,” says General Partner Dina el-Shenoufy.
With a hybrid methodology that blends virtual cohort connections across the fund region with real on-the-ground interactions in local marketplaces, the program adapts to be regional.
Before the end of 2023, the startups chosen for the initial investments will be disclosed. There will be two cohorts per year, each consisting of 10 to 15 startups.