Egyptian VC firm looks for African start-ups with new tech fund
An Egyptian venture capital firm has launched a US$95 million fund for technology start-ups in north, west and east Africa.
Flat6Labs has been present in north Africa for 12 years but now wants to expand into Nigeria, Ghana, Kenya, Morocco and Senegal, plus other countries.
Dina el-Shenoufy (pictured), chief investment officer for Flat6Labs, said: “The programme 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.”
The fund plans to invest in more than 160 early-stage start-ups over the next five years 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 which contribute to addressing social and environmental challenges”, said the company.
El-Shenoufy, who is one of the two general partners for the new Africa Seed Fund (ASF), said the fund “is well-positioned to be a catalyst for driving long-term positive change that the youth of Africa really deserve, and to provide resources to the brightest of them, while accelerating the future of the African continent”.
The company said the “significant influx of capital from the ASF has the potential to create more than 14,000 jobs, provide support to more than 1,200 founders with 20% female participation, and generate revenue of more than $700 million”.
With the Africa Seed Fund, Flat6Labs will be investing in 160 companies that are in pre-seed up to pre-series A stage, with tickets ranging from $150,000 to $500,000.
El-Shenoufy said: “We have observed that the entrepreneurial market has matured over the years with a new wave of founders that are more experienced. We will also cater for these founders and offer higher ticket sizes to support these companies and a different track to the programme.”