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Cairo VC firm launches $95m African startup fund

Flat6Labs Afica VC fund Flat6Labs
Flat6Labs' new $95m venture capital fund is set to expand its impact in Africa
  • Flat6Labs’ African Seed Fund to invest in 160+ tech startups
  • New businesses in countries including Morocco, Nigeria and Kenya
  • Fund aims to generate revenue of more than $700m 

Venture capital firm Flat6Labs has announced a $95 million seed fund to grow early-stage African tech startups.

The African Seed Fund (ASF) will invest in more than 160 companies over the next five years.

It will pay particular attention to sectors that accelerate digital inclusion through information technology, as well as healthtech, fintech, edtech, greentech, agtech and climate tech.

With a focus on north, west and east Africa, the fund will reach into Nigeria, Ghana, Kenya, Morocco and Senegal.

Through its first two funds in Egypt and Tunisia Flat6Labs has invested more than $16 million in startups.

The VC firm, which has its headquarters in Cairo, raised over $191 million in follow-on funding while creating more than 2,500 direct jobs and 80,000 indirect jobs.

“Africa is one of the most exciting regions to invest in for tech and innovation, with huge untapped potential and unique business opportunities,” Ramez El-Serafy, general partner for ASF, said.

Capital from the ASF has the potential to create more than 14,000 jobs, provide support to more than 1,200 founders with 20 percent female participation, and generate revenue of more than $700 million, according to a statement from the company.

A total of $2.9 billion was raised for startups in Africa in 2022 through a record 714 investors, according to a report from Dubai-based research firm Magnitt.

Almost 65 percent of investors hailed from outside the region, with US-based investors at the top.

“The number of regional investors has been retreating in favour of Mena-based international investors,” the report added. 

ASF will be investing in companies that are in pre-seed up to pre-series A stage, with tickets ranging from $150,000-$500,000.

Established in 2011, Flat6Labs is currently active in seven countries – Egypt, Lebanon, Tunisia, Bahrain, Jordan, UAE, and Saudi Arabia – and manages seed funds with total assets under management of $85 million. 

  

   Top Africa startups by total funding

   Aspen Pharmacare (South Africa) – $3,826,836

   Jumia (Nigeria) – $805,345,200

   MNT-Halan (Egypt) – $670,000,000

   Steinhoff International (South Africa) – $654,044,994

   IHS Towers (Nigeria) – $652,000,000

   Greenlight Planet (Kenya) – $576,000,000

   OPay (Nigeria) – $570,000,000

   Promasidor (South Africa) – $532,000,000

   Flutterwave (Nigeria) – $484,625,000

   Zipline (Rwanda) – $483,000,000

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