Seedstars Africa Ventures, an early-stage venture capital fund, has secured its first close at $42 million, marking a significant step in its mission to invest in highly scalable African startups. Supported by global investors, including the African Development Bank and EIB Global, the fund aims to bridge early-stage financing gaps and catalyse economic growth across the continent. With offices in Nairobi, Dakar, and Paris, the fund has also secured $50 million in commitments towards its $80 million fundraising target.

The announcement was made during the 2024 Africa Investment Forum Market Days in Rabat, Morocco, an event co-hosted by the African Development Bank and the European Investment Bank (EIB). Seedstars Africa Ventures is part of LBO France Group’s African strategy and focuses on empowering startups with investments of up to $2 million during seed and Series A rounds and up to $5 million in follow-on funding. The fund’s operational support further enables these startups to scale and attract co-investment.

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Advancing Africa’s venture capital ecosystem

The African Development Bank highlighted the fund’s importance as a strategic tool to enhance access to finance for youth and women while boosting risk capital availability in underserved regions, particularly Francophone Africa. Ahmed Attout, the Bank’s Director for Financial Sector Development, described it as a game-changer for Africa’s venture capital ecosystem.

EIB Vice-President Ambroise Fayolle lauded the fund’s focus on innovation, noting, “Accelerating digitalization is a priority for the EIB, and we are committed to supporting African businesses as they drive innovation and prosperity on the continent.”

LBO France, a pivotal supporter of Seedstars Africa Ventures, emphasised the transformative impact of the fund’s portfolio. CEO Stéphanie Casciola stated, “The team has built an innovative portfolio already providing significant value to the continent. We are proud to be part of this growth story.”

Impactful investments transforming African lives

The fund has deployed over $10 million across five pioneering startups operating in critical sectors like climate, food systems, financial inclusion, and internet connectivity. These companies collectively serve over 60 million people, connecting tens of thousands of households to broadband, supporting farmers, and empowering individuals with financial services.

Among its portfolio are companies like Beacon Power Services in Nigeria, which improves electricity access; Kenya’s Poa! Internet, delivering affordable broadband; Uganda’s Xeno, offering sustainable financial products; Bizao, a payment aggregation platform for Francophone Africa; and Kenya’s Shamba Pride, which supports farmers through franchised shops.

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Driving inclusive growth

Seedstars Africa Ventures adheres to the 2X Challenge, ensuring its portfolio supports women-led startups and ecosystems. This approach not only empowers women but also strengthens communities and enhances the overall economic impact of its investments.

With this milestone, Seedstars Africa Ventures I positions itself as a catalyst for African innovation, advancing digital transformation and economic inclusion. As it scales operations, the fund reaffirms its commitment to reshaping Africa’s business landscape through targeted investments and robust partnerships.