Flat6Labs is amongst probably the most lively VCs in Africa, having invested in over 100 startups thus far, throughout the Center East and North Africa (MENA) area. And now, after 11 years, the Egypt-based seed-stage accelerator is setting out on a foray into East and West Africa via a $95 million Africa Seed Fund funding car that can mark its first enterprise exterior MENA.
“We’re embarking on a brand new part for the group by increasing into sub-Saharan Africa via Africa Seed Fund,” the agency’s CEO Ramez El-Serafy informed TechCrunch, including that the growth might be gradual, with two-thirds of its allocations nonetheless going to enterprises in North Africa. Flat6Labs is eyeing an preliminary shut earlier than the 12 months ends.
“We’re including Kenya and its neighboring markets in East Africa, and the Anglophone and francophone sides of West Africa, together with Nigeria, Senegal, Côte d’Ivoire, Ghana and Cameroon,” mentioned El-Serafy.
Flat6Labs has beforehand administered country-specific funds, together with a $10 million Anava Seed Fund for Tunisian startups, and it is just now that it’s operating a fund for startups in a number of international locations.
“With markets throughout the area maturing just a little bit, it is sensible that we begin cohesive areas when it comes to the common buying energy, and alternatives — the merchandise that you just see being created in these markets are very related and straightforward to take from one nation to the following,” mentioned Flat6Labs CIO Dina El-Shenoufy.
Flat6Labs $95 million Africa Seed Fund is sector agnostic
The fund is sector agnostic and plans to put money into fintechs, healthtech, logistics, mobility, cleantech, agtech, retail and e-commerce startups.
Flat6Labs plans to speculate between $150,000 and $400,000, and make follow-on investments of as much as $500,000 to make sure continued help for the startups. It invested between $30,000 to $100,000 in earlier funds.
“We offer the capital, however there’s an enormous worth when it comes to how we work with the corporate due to how we place ourselves as an institutional co-founder of the corporate by serving to them arrange the corporate, register it, and supply entry to our networks. We’re one of many few gamers in North Africa that’s increasing south in Africa, so that is additionally one thing that additionally provides numerous worth on the subject of our geographic publicity,” mentioned El-Serafy.
El-Shenoufy added that: “About 60 p.c of the checks will in all probability be checks that occur alongside this system whereas the remainder might be straight checks for extra mature founders.”
The cohort, he says, can have founders from completely different areas, creating a chance for people from completely different cultures, and backgrounds to work together, share concepts, work collectively, and achieve the chance to entry new markets. Flat6Labs will admit 10 to fifteen startups each six months in its seed program. The accelerator plans to again as much as 170 startups over the following 5 years.
Flat6Labs, which claims to have $100 million in property beneath administration, was based in Egypt, and has through the years deployed a number of country-specific funds, and accelerator packages with companions in seven international locations together with Saudi Arabia, the UAE, and Lebanon.
A few of its companions in earlier funds embrace the Worldwide Finance Company (IFC), the 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 that startups throughout Africa want, particularly within the wake of a troublesome fundraising atmosphere.
“We’re very enthusiastic about Africa, it is likely one of the quickest rising markets on the earth. It is extremely distinctive when it comes to its younger inhabitants, and the necessity for know-how to resolve most of the challenges that we face on the continent. It makes numerous sense for us additionally as a corporation to be increasing south,” mentioned El-Serafy.
“We additionally know rising markets very nicely. I’ve been working within the Center East for the final 11 years investing in founders in the midst of revolutions just like the Arab Spring.It’s wonderful to work with all these founders and help them throughout these occasions,” he mentioned.
