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  Flat6Labs, a prominent seed investor in the Middle East and North Africa (MENA) region, has recently declared the establishment of a new Seed Fund worth US$95 million. The purpose of this fund is to foster the growth and advancement of early-stage technology startups across Africa. Flat6Labs boasts a successful history of thoroughly evaluating and supporting promising startups in North Africa over the past 12 years, having invested over US$16 million in various startups. Through its first two funds in Egypt and Tunisia, the company has secured over US$191 million in follow-on funding, creating 2,500 direct jobs and 80,000 indirect jobs.
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The Africa Seed Fund (ASF) is a venture capital firm based in Egypt that will concentrate on three key investment regions in Africa: North Africa, West Africa, and East Africa. Flat6Labs, on the other hand, will broaden its reach by entering several new territories, including Ghana, Kenya, Morocco, Nigeria, and Senegal, among others. The fund will be overseen by Ramez El-Serafy and Dina el-Shenoufy as General Partners, and it will back more than 160 technology-based early-stage startups across Africa in the next five years. The fund will focus on sectors that have a significant impact on digital inclusion and address social and environmental issues, such as AgriTech, ClimateTech, EdTech, FinTech, GreenTech, HealthTech, and others. The ASF’s considerable investment has the potential to generate over US$700 million in revenue, support more than 1,200 founders, with 20% of female participation, and produce over 14,000 job opportunities. According to Ramez El-Serafy, who serves as a General Partner for ASF, the launch of the Africa Seed Fund is a source of great excitement. He believes that Africa is one of the most promising regions for investing in technology and innovation due to its significant untapped potential and unique business opportunities. The ASF aims to use its expertise and experience to assist startup founders in creating truly scalable, investment-ready businesses that are based in Africa. The African technology ecosystem has seen continued growth in 2022, with funding for the sector increasing to US$6.5 billion from US$6.0 billion in 2021, according to the Partech 2022 Africa Venture Capital Report. This growth has overcome global headwinds, demonstrating the underlying forces driving the expansion of the African technology ecosystem.
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Through the Flat6Labs Africa Seed Program, the Africa Seed Fund, led by Flat6Labs, will invest in 160 companies that are in the Pre-Seed to Pre-Series A stages. The fund will offer investment tickets ranging from US$150,000 to US$500,000 and will also provide seed funding to experienced founders independently of the program. Additionally, the ASF will be able to reinvest in portfolio companies during follow-on rounds. Through Flat6Labs’ Africa Seed Program, companies in the fund’s portfolio receive seed funding, access to a network of experienced local mentors, and support for establishing and expanding their businesses in the region. The program offers regional business support and assistance with regulatory and logistical matters. It employs a hybrid model that combines physical, on-the-ground interactions in local markets with virtual elements that enable cohort-wide interactions throughout the fund’s entire region. The program is set to run two cohorts each year, with an average of 10 to 15 startups per cohort. The first round of investments in the selected startups is expected to occur before the end of 2023. According to Dina el-Shenoufy, who serves as a General Partner for ASF, the fund is well-positioned to act as a catalyst for driving positive long-term change for the youth of Africa. The ASF aims to provide resources to the brightest entrepreneurs in the region while also accelerating the future of the African continent. The program is designed to give entrepreneurs the resources they need to grow and scale up their businesses to new heights.
Register to attend the CN Business Mixer El-Shenoufy also noted that the entrepreneurial market has matured in recent years, with a new wave of more experienced founders emerging. The ASF will cater to these founders by offering higher ticket sizes to support their companies and a different track to the program. The Africa Seed Fund is being established by Flat6Labs in partnership with project (SAIS), with the support of GIZ on behalf of the German Government. Additionally, the fund is backed by the Egyptian Agricultural Innovation Project (AIP) and the Scaling Digital Agricultural Innovations through Start-ups project (SAIS). Featured Image Source: Flat6Labs
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This article was first published on 28th March 2023

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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