Flat6Labs launches $95m venture capital fund to expand in Africa

Shaimaa Raafat
5 Min Read

Flat6Labs, the MENA leader in seed funding and early stage VC investment, has announced the launch of a new $95m fund to boost the growth and development of early-stage technology startups on the African continent. Flat6Labs has a proven track record of vetting and investing in promising startups in North Africa since its founding 12 years ago, investing over $16m in startups, and raising over $191m in follow-up funding while creating over 2,500 direct jobs and 80,000 jobs. 000 indirect jobs through its first two funds in Egypt and Tunisia.

Headquartered in Egypt, the Africa Seed Fund (ASF) will focus on three main investment regions in Africa: North Africa, West Africa and East Africa. Flat6Labs will be expanding its reach into many new regions including Nigeria, Ghana, Kenya, Morocco and Senegal, among others. The fund will be headed by Ramez El-Serafi and Dina El-Shanoufi as general partners of the fund. The fund will invest in more than 160 early-stage startups over the next five years operating in the technology sector in Africa, with a focus on impactful sectors that accelerate digital inclusion through the use of information technologies and industries that contribute to addressing social issues and environmental challenges, such as health technology. Financial technology, education technology, green technology, agricultural technology, climate technology and other sectors.

The significant inflow of capital from the fund has the potential to create more than 14,000 jobs, support more than 1,200 founders with 20% female participation, and generate revenues of more than $700m.

“We are very excited to launch the Africa Seed Fund. Africa is one of the most exciting regions for investment in technology and innovation, with huge untapped potential and unique business opportunities. We will leverage our experience and knowledge to guide startup founders to create viable companies,” says Ramez El Serafi, General Partner of the Fund. Truly developed, ready for investment and based in Africa.

The African tech ecosystem continued to grow in 2022. According to the African Venture Capital Participant Report 2022, funding for the African sector increased from $6.0bn in 2021 to $6.5bn in 2022. So we can say that it is clear that the driving forces The growth of the African technological ecosystem has withstood global economic headwinds.

Flat6Labs will invest in 160 companies from the idea stage to stage A through the Africa Seed Fund, with an investment value ranging between $150,000 and $500,000, through the Flat6Labs Africa Seed Fund. The program also provides investments to the founders of our investment portfolio companies separately as subsequent financing.

The Flat6Labs Africa Seed Program provides seed funding to Flat6Labs portfolio companies that will join the programme, receive regional support, access to a regional network of seasoned local experts and trainers, as well as organizational and logistical support to help them establish and grow their businesses.

We designed the program at a regional level, where the program activities are implemented via the Internet with the possibility of holding events on the ground in local markets, with the aim of creating a pioneering interactive environment to include the entire fund area. Two cycles will be run per year, with an average of 10 to 15 startups per cycle. The first investments in the selected startups are scheduled to take place before the end of 2023.

“The Africa Seed Fund is well-positioned to be a catalyst to drive the long-term positive change that Africa’s youth deserve, and to provide resources for its innovators, while accelerating the growth of the African continent and propelling it into the future,” said Dina El Shenoufi, General Partner of the Fund. Entrepreneurs with the resources they need to be able to grow and scale their business to new heights.”

“We have noticed that the entrepreneurship market has matured over the years with the emergence of a new wave of more experienced founders. We will meet the needs of these founders and offer higher ticket sizes to support these companies participating in the program and other companies outside the program,” she added.

The Africa Startup Fund (ASF) was created by the Flat6Labs SAIS project, supported by the German Association for International Cooperation on behalf of the German government, through the Egyptian Agricultural Innovation Project (AIP) and scaling up digital agricultural innovations through the Startup Project (SAIS).

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