$95 M VC fund launched by Flat6Labs to support early-stage African startups
A new US $95 million fund has been established by MENA-focused seed investor Flat6Labs to support the growth and development of early-stage internet firms on the African continent.
The top seed and early-stage venture capital business in the MENA area is Flat6Labs. It operates a number of startup programs and is present in Egypt, Lebanon, Tunisia, Bahrain, Jordan, the UAE, and Saudi Arabia. The organization has made startup investments totaling more than US$16 million since its founding 12 years ago.
North Africa, West Africa, and East Africa will be the three key investment regions in Africa that its new Africa Seed Fund (ASF) will concentrate on. The geographic scope of Flat6Labs will be expanded into a number of new countries, including Senegal, Ghana, Kenya, Nigeria, and Kenya.
With investment amounts ranging from US $150,000 to US $500,000, 160 startups in pre-seed through pre-Series A stages will be supported by Flat6Labs.
Over the course of the next five years, the ASF, which will be led by general partners Ramez El-Serafy and Dina el-Shenoufy, will invest in more than 160 early-stage startups in the African technology sector, with a focus on industries that address social and environmental problems and accelerate digital inclusion through the use of information technologies, such as e-health, FinTech, ed-tech, green-tech, agri-tech, and climate-tech.
“We are extremely excited about the launch of the Africa Seed Fund. Africa is one of the most exciting regions to invest in tech and innovation, with huge untapped potential and unique business opportunities. We will leverage our experience and knowledge to guide the startup founders to create truly scalable, investment-ready, Africa-based companies,” El-Serafy said.
The Africa Seed Programme of Flat6Labs offers portfolio firms who enroll in the program seed money, local business assistance, access to a network of seasoned local mentors in the area, as well as logistical and regulatory support to help them launch and expand their businesses. The program also adjusts to regional needs with a hybrid architecture that combines virtual components that enable cohort connections throughout the whole fund region with real on-the-ground engagements in local marketplaces. Each year, there will be two cohorts, each consisting of 10 to 15 companies. Before the end of 2023, the first investments are anticipated to be made in the chosen startups.
“The Africa Seed Fund is well-positioned to be a catalyst for driving long-term positive change that the youth of Africa really deserve, and to providing resources to the brightest of them, while accelerating the future of the African continent. The programme is designed to provide entrepreneurs with the resources that they need to be able to grow and to scale up their businesses to new heights,” said el-Shenoufy.
“We have observed that the entrepreneurial market has matured over the years with a new wave of founders that are more experienced. We will also cater to these founders and offer higher ticket sizes to support these companies and a different track to the programme.”
