MENA VC Flat6Labs new fund to support startups in East and West Africa

Flat6Labs is among the many most energetic VCs in Africa, having invested in additional than 100 startups within the Center East and North Africa (MENA) area up to now. And now, 11 years later, the Egypt-based seed stage accelerator is flocking to East and West Africa with a $95 million African Seed Fund funding automobile that may have fun its first enterprise outdoors of MENA.

“We’re beginning a brand new part for the group by increasing into Sub-Saharan Africa by means of the African Seed Fund,” mentioned the agency’s CEO. Ramez El-Serafy He added that the growth can be gradual, with two-thirds of its allocations nonetheless going to companies in North Africa. Flat6Labs plans the primary closure earlier than the tip of the 12 months.

“We’re including Kenya and its neighboring markets in East Africa, and the Anglophone and Francophone sides of West Africa, together with Nigeria, Senegal, Ivory Coast, Ghana and Cameroon,” El-Serafy mentioned.

Flat6Labs, additionally a seed accelerator, beforehand managed country-specific funds, together with the $10 million Anava Seed Fund for Tunisian startups, and solely now runs a startup fund in a number of nations.

“Because the markets within the area mature a bit, it is smart that we begin taking a look at appropriate areas by way of common buying energy and alternatives – the merchandise you see being created in these markets are very related and straightforward to get from one nation to the subsequent,” mentioned CIO of Flat6Labs. Dina El-Shenoufy.

Flat6Labs $95M African Seed Fund is trade unbiased

The fund is trade unbiased and plans to put money into fintech, healthcare expertise, logistics, mobility, clear expertise, agritech, retail and e-commerce startups.

Flat6Labs will make investments between $150,000 and $400,000 to offer ongoing help to startups, with ongoing investments of as much as $500,000. He has invested between $30,000 and $100,000 in earlier funds.

“We offer the capital, however there may be super worth in how we work with the corporate as we place ourselves as a company co-founder of the corporate by serving to them arrange, register and entry our networks. so that is additionally one thing that provides loads of worth relating to our geographic visibility,” mentioned El-Serafy.

The group says it’s going to have founders from totally different areas and can create a possibility for people from totally different cultures and backgrounds to work together, share concepts, work collectively and entry new markets. Flat6Labs will settle for 10 to fifteen startups each six months in its seed program. The accelerator plans to again up as much as 170 startups over the subsequent 5 years.

El-Shenoufy mentioned: “About 60 % of the checks will seemingly be checks that happen subsequent to the checks. [seed] program, the remaining can be direct checks for extra mature founders.

Claiming to have $100 million in property beneath its administration, Flat6Labs was based in Egypt and has run quite a lot of country-specific funds and accelerator applications through the years with companions in seven nations, together with Saudi Arabia, UAE and Lebanon.

A few of its companions in earlier funds are the Worldwide Finance Company (IFC), MSME Growth Company, Egypt Ventures and the Egyptian American Enterprise Fund.

With the brand new program, the accelerator hopes to be a part of the help wanted by startups in Africa, particularly after a difficult fundraising atmosphere.

“We’re very enthusiastic about Africa, one of many quickest rising markets on this planet. It is extremely distinctive in its younger inhabitants and its want for expertise to unravel the numerous issues we face on the continent. Increasing south as a corporation additionally means rather a lot to us,” mentioned El-Serafy.

“We additionally know the rising markets very effectively. For the final 11 years, I’ve been working within the Center East within the midst of revolutions such because the Arab Spring, investing in founders. “It is unimaginable to work with and help all these founders throughout these occasions.”