Flat6Labs launches $95m fund for African tech start-ups

Flat6Labs launched a new $95 million venture capital fund to expand its impact in Africa. Photo: Supplied/Ventureburn
Flat6Labs launched a new $95 million venture capital fund to expand its impact in Africa. Photo: Supplied/Ventureburn

Flat6Labs, a leading seed investor in the Middle East and North Africa (MENA) region, has announced the launch of a $95 million seed fund, the Africa Seed Fund (ASF), to nurture the growth and development of early-stage tech start-ups in Africa.

The fund will focus on North, West, and East Africa, extending its reach to Nigeria, Ghana, Kenya, Morocco, and Senegal, amongst others. It will invest in more than 160 early-stage start-ups that operate in the technology sector in Africa, with a focus on impactful sectors that accelerate digital inclusion through the use of information technologies and industries that contribute to addressing social and environmental challenges.

The fund is furthermore expected to create more than 14 000 jobs and generate revenue of over $700 million.

According to the Partech 2022 Africa Venture Capital Report, funding for the African sector increased to $6.5 billion in 2022, up from $6.0 billion in 2021. This growth shows that the African tech ecosystem has continued to develop in 2022, despite global headwinds.

Ramez El-Serafy and Dina el-Shenoufy will be the general partners for the ASF. El-Serafy said that Africa is one of the most exciting regions to invest in tech and innovation, with huge untapped potential and unique business opportunities. “We will leverage our experience and knowledge to guide the start-up founders to create truly scalable, investment-ready, Africa-based companies,” he added.

Flat6Labs’ Africa seed programme provides portfolio companies joining the programme with seed funding, regional business support, access to a regional network of seasoned local mentors, as well as regulatory and logistical support to set up and grow their businesses. It is designed to provide entrepreneurs with the resources that they need to be able to grow and to scale-up their businesses to new heights.

Two cohorts will be run annually, with an average of 10 to 15 start-ups per cohort. The first investments in the selected start-ups are planned to be made before the end of 2023. The ASF will also be able to reinvest into portfolio companies in follow-on rounds.

Dina el-Shenoufy, general partner for ASF, said that the Africa Seed Fund is well-positioned to be a catalyst for driving long-term positive change that the youth of Africa really deserve and to providing resources to the brightest of them while accelerating the future of the African continent.

The Africa Seed Fund (ASF) is being established by Flat6Labs, project (SAIS), with the support of the GIZ on behalf of the German Government and through the Egyptian Agricultural Innovation Project (AIP) and Scaling Digital Agricultural Innovations through Start-ups project (SAIS).

Flat6Labs is the MENA region’s leading seed and early stage venture capital firm, currently running the most renowned start-up programmes in the region. Flat6Labs invests in innovative and technology-driven start-ups, enabling thousands of passionate entrepreneurs to achieve their daring ambitions and ultimately becoming their institutional co-founders.

It provides a wide range of investment ticket sizes ranging from $50 000 to $500 000, supporting start-ups through their early journeys from pre-seed all the way to pre-Series A stages.

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