EIB Global announced new investment in Seedstars Africa Ventures I, a Nairobi, Kenya- and Paris, France-based venture capital fund for African innovative entrepreneurs managed by Seedstars Africa Ventures Investment Management.
Created by Maxime Bouan, Tamim El Zein and Bruce Nsereko Lule, in partnership with Seedstars, and LBO France, Seedstars Africa Ventures I will invest in companies developing and implementing digital technologies, in particular those addressing basic needs such as education, healthcare and utilities, or enhancing goods, services and efficiency. Increased access to capital will allow companies to grow, creating skilled jobs and improving products and services for businesses and consumers.
The fund invests initial amounts up to US$ 2m in Seed+ / Series A companies and able to reinvest up to US$ 5 million. With presence and active networks in 25+ countries, the vehicle is able to invest in and actively support companies throughout Africa. The fund was created in partnership with Seedstars, the leading emerging markets accelerator.
The vehicle leads investment rounds to facilitate syndication and provides operational support that is lacking in the regional venture capital space. On top of its internal, on-the-ground teams, the fund leverages support resources provided by the acceleration platform of Seedstars.
Seedstars Africa Ventures I has an US$80 to US$100m target size. The fund, which expects to reach a first close early this year, has already completed four transactions, namely in Beacon Power Services, Poa! Internet, Shamba Pride and Bizao.
The US$30m EIB Global investment is backed by the EU, through US$20m from the ACP Trust Fund and US$10m from the Boost Africa programme.