Seedstars Africa Ventures attracts $10.5m from AfDB
TLDR
- $10.5 million investment received by Seedstars Africa Ventures from the African Development Bank and the European Union Boost Africa program.
- Investment will help Seedstars Africa raise funds, expand in Africa, and attract other investors.
- Seedstars focuses on investing in high-growth companies in Sub-Saharan Africa, especially those in underserved markets.
Days after disclosing a $30 million investment from EIB Global, Seedstars Africa Ventures S.L.P., a venture capital fund to support innovative African businesses with strong growth potential, will get $10.5 from the African Development Bank (AfDB).
The AfDB will contribute $7 million from its ordinary resources, with an additional $3.5 million from the European Union Boost Africa program. The investment is expected to assist Seedstars Africa in raising funds, expanding its footprint in Africa, and attracting other investors.
Seedstars is an early-stage venture capital fund that focuses on investing in high-growth companies operating across Sub-Saharan Africa. The fund particularly targets businesses that demonstrate strong potential, generate income, and address key challenges in the market while emphasizing markets less covered by traditional investors.
Key Takeaways
The growing interest in opportunities in Africa and other frontier markets is reflected in the rise of small- to medium-sized funds with capital typically under $100 million. Seedstars Africa Ventures is one such venture capital fund, with a capital pool of $75 million, focusing on the startup and launch phases of businesses addressing key challenges in the market. Seedstars Africa Ventures deploys initial investments at around the EUR 250,000 (around $270,000) mark, providing crucial support during the early stages of business development. Additionally, the fund facilitates further growth by injecting additional capital, with subsequent investments reaching up to €5 million. This approach aligns with the fund's strategy to contribute to the expansion and success of startups in Africa by providing financial backing at critical stages of their development.
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