Flat6Labs: $95 million for African startups.
A Flat6Labs, a leading angel investor in the Middle East and North Africa (MENA), announced the launch of a new $95 million angel capital fund to drive the growth and development of early-stage technology startups on the African continent.
The Africa Seed Fund (ASF) will focus on three key investment territories in Africa: North Africa, West Africa and East Africa. Flat6Labs will expand its reach into several new territories including Nigeria, Ghana, Kenya, Morocco and Senegal among others and will be led by Ramez El-Serafy and Dina el-Shenoufy 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 impact sectors that accelerate digital inclusion through the use of information technologies and industries that contribute to addressing social challenges and environmental, such as HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and other sectors.
Significant impact on job creation
ASF's significant capital inflow has the potential to create more than 14.000 jobs, support more than 1.200 founders with 20% female ownership, and generate revenues of more than $700 million.
Ramez El-Serafy, General Partner of the ASF, stated:
"We are extremely excited about the launch of the Africa Seed Fund."
“Africa is one of the most exciting regions to invest in technology and innovation, with huge untapped potential and unique business opportunities”.
“We are going to leverage our experience and our knowledge to lead startup founders to create truly scalable companies”.
“Investment-ready companies headquartered in Africa”.
According to the Partech 2022 Africa Venture capital report, funding for the African sector has increased to USD 6,5 billion in 2022, up from USD 6,0 billion in 2021. growth of the African technological ecosystem prevailed against the global contrary signals.
Flat6Labs invest in start-up companies
With the Africa Seed Fund, Flat6Labs will be investing in 160 companies that are in the Pre-Seed to Pre-Series A phase, with investments ranging from $150.000 to $500.000 through Flat6Labs' Africa Seed Program, and will be also providing angel capital passwords to experienced founders, regardless of program.
Flat6Labs, with the Africa Seed Program, provides angel capital funding to portfolio companies that join the program, regional business support, access to a regional network of experienced local mentors, as well as regulatory and logistical support for the creation and growth of its businesses and also reinvests in portfolio companies in follow-up rounds.
The program also adapts to being regional with a hybrid model that allows for physical interactions on the ground in local markets, while combining virtual elements that allow for cohort interactions across the fund region.
Two cohorts will be managed annually, with an average of 10-15 startups per cohort. The first investments in selected startups are planned for the end of 2023.
Dina el-Shenoufy, ASF General Associate, said:
“The Africa Seed Fund is well positioned to be a catalyst to drive positive, long-term change that Africa's youth truly deserve,”
"It is well positioned to provide resources to the brightest, while accelerating the future of the African continent."
"The program is designed to provide entrepreneurs with the resources they need to be able to expand their business to new heights."
Flat6Labs
Flat6Labs is the MENA region's premier angel and early stage venture capital firm currently managing the region's leading startup programs. Flat6Labs invests in innovative, technology-driven startups, enabling thousands of passionate entrepreneurs to achieve their bold ambitions and eventually become their institutional co-founders.
With total assets under management (AUM) in excess of USD 85 million, Flat6Labs is located in seven countries – Egypt, Lebanon, Tunisia, Bahrain, Jordan, UAE and Saudi Arabia. More than 25 leading institutions have invested in Flat6Labs managed funds, putting their faith in the asset class and Flat6Labs' proven track record as a market leader.
In addition to investments, Flat6Labs' startup programs, run to specifically address the needs of innovative entrepreneurs, help us accelerate their growth by providing them with a plethora of support services and connecting them to unparalleled opportunities with an expansive network. made up of hundreds of business mentors, investors and companies.
The Africa Seed Fund (ASF) is being created by Flat6Labs, project (SAIS), with the support of CHALK on behalf of the German government and through the Egyptian Agricultural Innovation Project (AIP) and the Digital Agricultural Innovations at Scale through Start-ups Project (SAIS).
Conclusion
If there were more angel investors like Flat6Labs, interested in investing in Africa, the continent could evolve much faster, unfortunately it seems that they do not exist or do not want to know about the continent.
Let's hope this example leads to other similar investors appearing, because Africa needs them.
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Picture: © Flat6Labs
