Seedstars Africa staff
Seedstars Africa Ventures I announced that it has secured $42 million at the close of its first fundraising round. The early stage venture capital firm with a focus on scalable African startups revealed this milestone during the 2024 Africa Investment Forum Market Days, a flagship event dedicated to advancing transformative projects across the continent.
The initiative attracted participation from notable investors including the African Development Bank (AfDB) and EIB Global, the development arm of the European Investment Bank (EIB), with backing from the European Union (EU) under the ACP Trust Fund — EU Compartment and the Boost Africa program. Seedstars Africa was able to secure commitments totalling $50 million towards its $80 million fundraising target.
Seedstars Africa was the brainchild of Maxime Bouan, Tamim El Zein, and Bruce Nsereko Luke. The venture capital firm draws on a collective 45 years of investment in Africa. The initiative operates as a part of the LBO France Group, a Paris-based private equity firm that played a key role in seeding the fund.
Seedstars Africa seeks to address the problem of early stage financing for African startups. Its strategy is to target investments of up to $2 million in seed and Series A rounds, with follow-on investments of up to $5 million. Beyond providing capital, the fund will actively support portfolio companies with operational expertise.
The fund has already deployed $10 million to five startups operating across eight African countries, collectively serving over 60 million people. These businesses contribute to key development goals, including connecting 60,000 households to broadband internet, supporting 50,000 farmers, and empowering 30,000 individuals with financial inclusion services.
The fund’s focus areas include climate resilience, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure — sectors vital to the continent’s sustainable development.
LBO France Chairman Robert Daussun and CEO Stéphanie Casciola praised the fund’s progress, highlighting its innovative portfolio and transformative impact. “Seedstars Africa Ventures is at the forefront of Africa’s growth story, providing solutions to challenges that are pivotal for the continent’s economic and social advancement,” they said in a joint statement.
EIB Vice-President Ambroise Fayolle also highlighted the strategic importance of digitalization for Africa’s future. “Accelerating innovation and prosperity through digital transformation is a key priority for the EIB, and our support for Seedstars Africa Ventures aligns with this vision,” he said.
Being a founding partner of the Africa Investment Forum, the African Development Bank keeps supporting initiatives like Seedstars Africa Ventures, as long as such initiatives provide transformative opportunities for entrepreneurs across the continent. Funding like the one provided to Seedstars Africa is a giant leap towards unlocking Africa’s entrepreneurial potential, fostering inclusive growth, and attracting global investment to the region.
Seedstars Africa Ventures I represents a robust commitment to empowering Africa’s next generation of innovators and businesses, reinforcing the continent’s role as a hub for global innovation and investment.
