The ASF will invest in more than 160 companies over the next five years at pre-seed to pre-Series A stages.
Egypt-based VC firm Flat6Labs has launched a $95m Africa Seed Fund (ASF) to support early-stage tech start-ups in North, West and East Africa. It will be extending its reach into several new territories including Nigeria, Ghana, Kenya, Morocco, and Senegal, amongst others.
Flat6Labs has a track record in vetting out and investing in promising startups in North Africa since it was founded 12 years ago, with more than $16m invested in startups, and over $191m raised in follow-on funding while creating more than 2,500 direct jobs and 80,000 indirect jobs through its first two funds in Egypt and Tunisia.
The ASF will be led by Ramez El-Serafy and Dina el-Shenoufy as General Partners for the fund. The fund will invest in more than 160 early-stage startups over the next five years that operate in the technology sector in Africa, with a focus on impactful sectors that accelerate digital inclusion through the use of information technologies and industries which contribute to addressing social and environmental challenges, such as HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and other sectors.
The significant influx of capital from the ASF has the potential to create more than 14,000 jobs, provide support to more than 1,200 founders with 20% female participation, and generate revenue of more than $700m.
Speaking about the funding, Ramez El-Serafy, General Partner for ASF, said: “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.”
According to Partech 2022 Africa Venture Capital Report, funding for the African sector increased to $6.5bn in 2022, up from $6.0bn in 2021.
With the Africa Seed Fund, Flat6Labs will be investing in 160 companies that are in Pre-Seed up to Pre-Series A stage, with tickets ranging from $150K-$500K through the Flat6Labs Africa Seed Programme and will also be providing seed tickets to seasoned founders independently of the programme. ASF will also be able to reinvest into portfolio companies in follow-on rounds.
Dina el-Shenoufy, General Partner for ASF, stated: “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.”
El-Shenoufy concluded: “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 for these founders and offer higher ticket sizes to support these companies and a different track to the programme.”
