Flat6Labs, an Egyptian-based seed investor, has launched a seed fund worth Sh12.33 billion, targeting Kenyan and African startups. The fund, called the Africa Seed Fund (ASF), will be invested in more than 160 early-stage startups over the next five years in the HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and other sectors. The fund will focus on three main investment territories in North Africa, West Africa, and East Africa.
The Fund Seeks to Nurture the Growth and Development of Early-stage Tech Startups in Africa
The ASF aims to nurture the growth and development of early-stage tech startups in Kenya and on the continent as a whole. Through the capital, the firm said it will be extending its reach into Nigeria, Ghana, Kenya, Morocco, and Senegal, among others. The fund will create more than 14,000 jobs, provide support to more than 1,200 founders with 20 percent female participation, and generate revenue of more than $700 million.
ASF General Partners and Their Role
The ASF will be led by Ramez El-Serafy and Dina el-Shenoufy as General Partners for the fund. Ramez El-Serafy stated, “We are extremely excited about the launch of the Africa Seed Fund. Africa is one of the most exciting regions to invest in tech and innovation, with huge untapped potential and unique business opportunities.” El-Serafy believes the fund will guide startup founders to create truly scalable, investment-ready, Africa-based companies.
The ASF will invest in startups in various sectors such as HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and others. The fund aims to leverage its experience and knowledge to guide the startup founders to create truly scalable, investment-ready, Africa-based companies. The ASF is supported by the GIZ on behalf of the German Government, and through the Egyptian Agricultural Innovation Project (AIP) and Scaling Digital Agricultural Innovations through Start-ups project (SAIS).
Record Funding in Kenya
This comes after Kenyan startups raised a record Sh71.85 billion last year, boosted by record funding in the fintech and retail-tech sectors. Latest data from Disrupt Africa, an online news platform for startups, shows that funding increased from Sh36.49 billion in 2021 to Sh71.85 billion in 2022, representing a 96.9 percent jump. The ASF will target Kenyan and African startups in the HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and other sectors.
The ASF will cater to founders that have more experience and offer higher ticket sizes to support these companies and a different track to the program. According to ASF General Partner Dina el-Shenoufy, “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 program.”