TLDR:
- EIB Global has invested $30 million in the Seedstars Africa Ventures I venture capital fund.
- The fund, created by Seedstars and LBO France, will invest in Seed+ and Series A rounds, focusing on companies developing and implementing digital technologies in areas such as education, healthcare, and utilities.
- The investment will support African entrepreneurs and help foster inclusive economic growth and reduce economic and social disparities.
EIB Global has announced a $30 million equity investment in the Seedstars Africa Ventures I venture capital fund. The fund, created in partnership with Seedstars and LBO France, aims to invest in Seed+ and Series A rounds, with a focus on companies developing and implementing digital technologies. These technologies are expected to address basic needs such as education, healthcare, and utilities, and enhance goods, services, and efficiency.
By supporting African entrepreneurs, the investment from EIB Global will help foster inclusive economic growth and reduce economic and social disparities. The digital sector is seen as a key driver of growth and innovation, and small and medium-sized enterprises, as well as start-ups, play a crucial role in fueling the digital economy. However, global pressures over the past 18 months have made it more difficult for companies to access finance, particularly at the early stages of business development.
The investment from EIB Global is backed by the European Union (EU), through $20 million from the ACP Trust Fund and $10 million from the Boost Africa program. The Boost Africa program, launched in 2016, aims to boost sustainable jobs and prosperity through venture capital for African entrepreneurs. Under the program, companies invested in by Seedstars Africa Ventures I will also receive technical assistance funded by the EU to develop business skills and expertise.
The investment from EIB Global will contribute to the EU’s Global Gateway strategy, which aims to support Africa’s digital transformation and create the right conditions for digital economies to thrive. The fund expects to reach a first close early this year and has already completed four transactions with Beacon Power Services, Poa! Internet, Shamba Pride, and Bizao.
