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HomeFunding RoundsSeedstars Africa Ventures receives $30M backing from EIB Global.

Seedstars Africa Ventures receives $30M backing from EIB Global.

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Seedstars Africa Ventures receives $30M backing from EIB Global. The startup has received backing of $30M to invest in early-stage startups.

Seedstars Africa Ventures has received a $30 million capital commitment from EIB Global, an arm of the European Investment Bank. It becomes the first major institutional investment for its first pan-African venture capital fund.

The new commitment follows an $8 million investment from the fund’s anchor investor, French private equity firm LBO France. The fund target is to close between $80 million and $100 million to back seed and Series A startups and offer follow-on funding up to Series B, bridging an extensive capital gap and supporting startups beyond accelerator programs.

See Also: South Africa-based E4E Africa announces first close of US$30m Fund II.

Seedstars Africa Ventures Launch Plans

To launch the fund, the VC firm’s partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko-Lule teamed up with the Seedstars Group, an emerging markets accelerator, tapping its infrastructure and market access in Africa.

“When the team launched in 2020, there was very little capital available beyond acceleration, so there was a clear need to provide more capital at this stage. The team wanted to be pan-African from the onset and be able to provide hands-on support to portfolio companies through a targeted early-stage investment strategy,” said Bouan.

“We approached Seedstars Africa Ventures with a win-win opportunity to build a complementary post-acceleration fund to leverage some of the resources and market access they had already built. This would add to strengthening its continual capital by offering different types of funding suited to the entrepreneurs’ maturity, and catalyzing international and local follower investor capital.”

See also  Egyptian digital healthcare startup Yodawy has raised US$10 million in funding.

Through initial funding from LBO France, the VC firm has already invested in four businesses, including Kenya’s internet service provider Poa Internet; Nigeria’s grid management SaaS for electricity distribution utilities, Beacon; Power Services agritech Shamba Pride; and payments company Bizao. It is now set to accelerate investments following the new funding.

Outside the pan-African fund, the Seedstars Group has also invested in twenty-six (26) African companies through its Seedstars International Ventures Funds I and II.

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