African start-ups play a vital role in economic growth and development. They create jobs, solve problems, and positively impact societies.  Funding them is therefore more important than ever.

Last Tuesday, Flat6Labs, MENA’s leading venture capital, announced the launch of the Africa Seed Fund (ASF), a new $95 million seed fund aimed at supporting the growth and development of early-stage tech start-ups in Africa.

The venture capital firm informs that ASF will focus on three main investment territories, namely North Africa, West Africa, and East Africa. It will invest in more than 160 early-stage African tech startups over the next five years with check sizes ranging from $150,000 to $500,000.

It will provide beneficiaries with seed funding, regional business support, access to a regional network of experienced mentors, and regulatory and logistical support to set up and grow their businesses. Two cohorts will be run every year, each with an average of 10 to 15 start-ups. The first investments in the selected start-ups are expected before the end of 2023.

Flat6Labs  “ will also be providing seed tickets to seasoned founders independently of the program,” the release announcing the ASF explains. According to the release, the large influx of ASF capital is likely to create more than 14,000 jobs, support more than 1,200 founders, 20% of whom are women, and generate more than $700 million in revenue.

“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 startup founders to create truly scalable, investment-ready, Africa-based companies,” said Ramez El-Serafy, General Partner for ASF.

The African tech ecosystem has grown significantly in recent years.  According to Partech's Africa Venture Capital Report 2022, the ecosystem attracted $6.5 billion of investments in 2022, up by 8% from the $6 billion attracted in 2021.

Samira Njoya