$30 M investment in Seedstars Africa VC fund made by EIB Global for innovative entrepreneurs
A venture capital fund called Seedstars Africa Ventures I, which aims to provide risk capital to creative businesses and startups throughout Africa, has received a US $30 million equity investment from EIB Global.
Seedstars Africa Ventures Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule founded I in collaboration with LBO France, a multi-country, multi-specialist investment platform that served as the initiative’s seed, and Seedstars, a global organization that invests in and supports entrepreneurs from emerging markets.
EIB Global, a specialized division of the European Investment Bank (EIB), the long-term lending arm of the European Union, has now committed US $30 million to it. EIB Global is committed to enhancing the influence of global collaborations and development funding.
The US $30 million investment is backed by the EU, through US $20 million from the ACP Trust Fund and US $10 million from the Boost Africa programme. After launching Boost Africa in 2016, the EIB has now fully implemented the program, which provides venture capital to African entrepreneurs in order to increase sustainable employment and prosperity.
“Encouraging and promoting innovation and digitalisation is crucial to developing strong and sustainable economies,” said EIB vice president Ambroise Fayolle. “African entrepreneurs hold the key to the continent’s future, creating jobs, reducing inequality, and improving quality of life. The EIB, as part of Team Europe, is committed to supporting African businesses, and we are proud of the success of Boost Africa and the ACP Trust Fund.”
Seedstars Africa Ventures I, which is based in Nairobi and Paris, said, “The anchoring ticket provided by the European Investment Bank is a testament to our investment thesis and the work we do across Africa.
“It signals the relevance of our positioning as well as the effectiveness of our support to portfolio companies. This recognition will further help us onboard both African and foreign investors in the fund to reach our US $80 million to US $100 million target size,” it said.
The fund has already completed four transactions in Beacon Power Services, Poa! Internet, Shamba Pride, and Bizao, and it anticipates reaching its first close early this year.
