Flat6Labs, MENA’s leading seed investor, has launched a new $95 million Seed Fund for the African tech startup ecosystem called the African Seed Fund (ASF). This fund is set to help nurture the growth and development of early-stage tech startups in Africa.
The Africa Seed Fund (ASF) will focus on three main investment territories in Africa: North, West, and East. The General Partners, Ramez El-Serafy and Dina el-Shenoufy, will lead it.
Speaking on the investment plan, Ramez El-Serafy 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.
Over the next five years, Flat6Labs intends to invest through the Africa Seed Fund in more than 160 early-stage tech companies (Pre-Seed up to Pre-Series A stage), with funds ranging from US$150K to US$500K. Independently from the program, the Flat6Labs’ Africa Seed Program will also offer seed tickets to seasoned entrepreneurs.
These startups, however, must be focused on making impacts 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.
Read Also: Why African startups have raised more funding in 2022 than last year
About Flat6Labs
Founded over a decade ago, Flat6Labs has been a significant investor in technology-driven startups. It is currently present in seven countries: Egypt, Lebanon, Tunisia, Bahrain, Jordan, UAE, and Saudi Arabia. It offers a variety of investment ticket sizes ranging from US$50K to US$500K, supporting startups throughout their early phases, from Pre-Seed to Pre-Series A.
With over $16M invested in startups and over $191M raised in follow-on funding, Flat6Labs has a strong track record of investing in promising North African startups across the entire African continent. Through its first two funds, it has produced over 2,500 direct jobs and 80,000 indirect jobs in Egypt and Tunisia.
Although. Flat6Labs is looking to expand into a few other territories, including Nigeria, Ghana, Kenya, Morocco, and Senegal.
About the African Seed Fund Program
The Africa Seed Fund (ASF) is a project established by Flat6Labs, with the support of the GIZ on behalf of the German Government and through the Egyptian Agricultural Innovation Project (AIP) and Scaling Digital Agricultural Innovations through Start-ups project (SAIS).
With the substantial infusion of funding from the ASF, it is anticipated that over 14,000 new jobs will be created, more than 1,200 founders with 20% female participation could receive support, and more than $700M in revenue could be generated.
How the African Seed Fund Program works
The program is designed to give entrepreneurs the tools to expand and scale up their businesses. To scale their businesses, selected startups will receive seed funding, local business support, access to a network of seasoned local mentors, and regulatory and logistical support. In subsequent rounds, ASF will also be able to reinvest in its portfolio companies.
Speaking about the plans for the program, Dina el-Shenoufy, General Partner for ASF, says,
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 program adapts to be regional with a hybrid model that combines virtual components that enable cohort interactions across the entire fund region and physical on-the-ground interactions in local markets.
There will be two cohorts (an average of 10-15 startups) annually, and selected startups for the first investments will be announced before the end of 2023.
Read Also: African startups raised $239m in July 2022, a 43.77% decline from June
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