Flat6Labs, a regional seed programme and fund, announced on Sunday the second close of its Flat6Labs Accelerator Company (FAC) Egypt fund fund, which saw funds to support Egyptian early-stage startups rise from EGP 50m to EGP 207m.
The fund also announced that it is raising its cash seed offering for its Cairo Seed Program to as much as EGP 1.5m, and up to EGP 3m in post-programme follow-on funding for selected startups.
FAC Egypt fund was launched in 2017 to invest in 100+ innovative startups across Egypt over the span of five years, with a focus on tech-enabled solutions.
Over the past three and half years of the investment period, the Flat6Labs Cairo Seed Program has run seven cycles, invested in 62 startups and trained over 350 founders.
It has also created over 1,000 jobs, 96% of which targeted youth between the ages of 19 and 35. Around half of Flat6Labs’ portfolio companies in Egypt have received follow-on funding with a total of EGP 145m.
The FAC fund’s existing Anchor Investors include: the International Finance Corporation (IFC); the Micro, Small, and Medium Enterprise Development Agency (MSMEDA); the Egyptian American Enterprise Fund; and Egypt Ventures.
These entities have all increased their commitments with the FAC fund, to support more early-stage technology startups in Egypt. Sawari Ventures, the latest significant investor in the FAC fund, has also participated in the second close of the fund.
Wael Amin, Managing Partner at Sawari Ventures, said, “Flat6Labs Egypt plays an integral role at the seed stage within the local and regional ecosystems, and has successfully provided the foundational support startups need through funding and mentorship, which is appealing for us.”
Amin noted that Sawari Ventures’ fund strategy has always been to allocate a percentage of its fund to the seed stage, which is a completely different proposition in terms of process, culture, and support needed.
As investors in Flat6Labs Accelerator Company, he added, Sawari Ventures has the opportunity to profitably participate in Egyptian companies at a very early stage. It also means the company gains early indicators on ecosystem trends, and visibility into the ecosystem.