EIB Global Commits $30 Million to Seedstars Africa Ventures for African Entrepreneurial Risk Capital Support

Seedstars Africa Ventures just secured a $30 million commitment from EIB Global, a branch of the European Investment Bank.

Building on an $8 million investment from anchor investor LBO France, Seedstars Africa Ventures I fund aims to raise between $80 million and $100 million.

This funding boost will enable the firm to back early-stage startups, from seed to Series A, with the potential for follow-on funding up to Series B.

The goal is to address a significant capital gap and extend support to startups beyond accelerator programs.

Launched in 2020 by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule, Seedstars Africa Ventures I fund, based in Nairobi, has already invested over $7 million in 25 companies across sub-Saharan Africa.

The plan is to invest $250,000 to $2 million in up to 30 startups, with the possibility of additional funding reaching up to $5 million. Entrepreneurs also gain access to Seedstars’ networks, resources, and visibility.

The fund, larger than average for Africa, intends to fill funding gaps in regions beyond the major players—Egypt, Kenya, Nigeria, and South Africa. It will offer operational and business support to founders and provide capital tailored to the needs of entrepreneurs on the continent.

While not focused on a specific industry, Seedstars Africa Ventures is interested in companies enhancing products, services, and efficiency, especially those in utilities, healthcare, and education.

Up to half of the fund’s capital is set to be invested in Francophone Africa, an area attracting emerging venture capital due to lower competition.

The overarching aim is to support growth and employment across the continent, emphasising digital technologies in delivering essential services and improving business operations.

This move by EIB Global isn’t its first in Africa, as it previously provided over $50 million to Atlantica Ventures, an early-stage pan-African impact-focused venture capital fund, in February 2022.