Seedstars Africa Ventures Secures $30M Funding To Boost Digitalization Across Sub-Saharan Africa

Seedstars Africa Ventures fund has received a $30 million capital commitment from EIB Global, an arm of the European Investment Bank.

To launch the fund, the VC firm’s partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule teamed up with the Seedstars Group, tapping its infrastructure and market access in Africa.

Seedstars Africa Ventures is an early-stage venture capital fund investing in high-growth companies active across Sub-Saharan Africa.

Through initial funding of $8 million from the fund’s anchor investor, French private equity firm LBO France, the VC firm has already invested in four businesses.

These include Kenya’s internet service providers Poa Internet, Beacon, Shamba Pride, and Bizao.

The $30M Fund

According to TechCrunch, the firm said the larger-than-average fund will provide capital well-suited to the needs of entrepreneurs in the continent.

This aims to bridge funding gaps in regions beyond the big four – Egypt, Kenya, Nigeria, and South Africa – and provide operational and business support to founders.

The increased capital will additionally allow companies to grow, create skilled jobs, and improve products and services for businesses and consumers.

The fund will invest in companies developing and implementing digital technologies.

In particular, they are investing in those addressing basic needs such as education, healthcare, and utilities, or enhancing goods, services, and efficiency.

“Encouraging and promoting innovation and digitalization is crucial to developing strong and sustainable economies,” said EIB Vice-President Ambroise Fayolle.

“African entrepreneurs hold the key to the continent’s future, creating jobs, reducing inequality, and improving quality of life.”

EIB will make an initial investment of $250,000 to $2 million and follow-on funding of up to $5 million in up to 30 startups.

This also grants the entrepreneurs access to Seedstars tools, networks, and visibility.

The European Union backs their Investment through the ACP Trust Fund and the Boost Africa Program.