VC raises $42m to drive early-stage investment

Seedstars Africa Ventures I, a venture capital fund dedicated to accelerating early-stage startups across Africa, has announced a $42 million first close to drive startup investment.

The announcement was made during the 2024 Africa Investment Forum Market Days. The $42 million first close includes participation from global investors such as the African Development Bank and EIB Global, with the support of the European Union through the ACP Trust Fund—EU Compartment and Boost Africa.

The fund, with offices in Nairobi, Dakar, and Paris, has secured another $50 million in commitments toward its $80 million fundraising target.

“The fund is bridging critical gaps in early-stage financing through investments of up to $2 million in seed and Series A rounds, with follow-on capacities reaching $5 million,” it said.

The fund has already deployed $10 million to five African startups operating in climate solutions, food systems, energy access, internet connectivity, financial inclusion, and payments infrastructure.

These startups are making a tangible impact, connecting over 60,000 households to the internet, supporting 50,000 farmers, and providing financial inclusion services to 30,000 individuals across eight African countries. Furthermore, Seedstars Africa Ventures I is fully 2X compliant, empowering women entrepreneurs and ecosystems.

Founded by Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule—who collectively bring over 45 years of experience investing and working across Africa—the fund operates under the umbrella of LBO France Group. LBO France played a foundational role in launching the initiative as part of its multi-asset-class African strategy.

“We are proud to have supported Seedstars Africa Ventures from its inception,” said Robert Daussun and Stéphanie Casciola, Chairman and CEO of LBO France. “The fund’s portfolio already demonstrates significant transformative impact, offering innovative solutions and value across the continent.”

Ahmed Attout, Director for Financial Sector Development at the African Development Bank Group, highlighted the fund’s role in addressing critical financing gaps.

“Seedstars Africa Ventures serves as a strategic platform to enhance access to finance for youth and women while increasing risk capital availability, especially in Francophone Africa, a region that has historically faced limited access,” Attout added.