Flat6Labs is one of the most active VCs in Africa and has so far invested in over 100 startups across the Middle East and North Africa (MENA) region. And now, 11 years later, the Egypt-based seed-stage accelerator is expanding into East and West Africa through his $95 million Africa seed fund investment vehicle, which will be its first venture outside of MENA. is starting to enter the market.
“We are embarking on a new phase of our organization by expanding into sub-Saharan Africa through our Africa Seed Fund,” CEO Ramez El Serafi told TechCrunch, adding that the expansion is in stages. It will be done on a regular basis and will be two-thirds of the quota, he added. Still going to companies in North Africa. Flat6Labs is aiming for its first financial results by the end of the year.
“We are adding neighboring markets in Kenya and East Africa, as well as English-speaking and French-speaking West Africa, including Nigeria, Senegal, Ivory Coast, Ghana and Cameroon,” said El-Serafy.
Flat6Labs previously managed country-specific funds, including the $10 million Anava Seed Fund, for Tunisian startups, and has recently operated funds for startups in multiple countries.
“With the markets across the region a bit more mature, it makes sense to focus on cohesive regions in terms of average purchasing power and opportunity. The products being created in these markets are very similar. Dina El-Shenoufy, CIO of Flat6Labs, said:
Flat6Labs’ $95M Africa Seed Fund Is Sector Agnostic
The fund is sector agnostic and will invest in Fintech, Healthtech, Logistics, Mobility, Cleantech, Agtech, Retail and e-commerce startups.
Flat6Labs plans to invest between $150,000 and $400,000, with an additional investment of up to $500,000 to ensure continued support for the startup. We invested between $30,000 and $100,000 in our previous funds.
“We provide capital, but there is great value in how we work with companies. Because we have established our network, we are one of the few North African players expanding southwards in Africa, which also adds a lot of value in terms of geographical exposure.
El-Shenoufy adds:
According to him, the cohort will have founders from different regions, creating opportunities for individuals from different cultures and backgrounds to interact, share ideas, collaborate and gain access to new markets. Flat6Labs accepts 10-15 startups every 6 months in a seed program. The accelerator plans to support up to 170 startups over the next five years.
Flat6Labs, which claims to have $100 million in assets under management, was founded in Egypt and over the years has rolled out several country-specific funds and accelerator programs with partners in seven countries, including Saudi Arabia, UAE and Lebanon. I was.
Previous fund partners include International Finance Corporation (IFC), MSME Development Agency, Egypt Ventures and Egyptian American Enterprise Fund.
With this new program, the accelerator hopes to be part of the support that startups across Africa need, especially in the wake of a tough funding environment.
“Africa is one of the fastest growing markets in the world. The young population and the need for technology to solve the many challenges facing this continent are very unique. Expanding south as an organization also makes a lot of sense for us,” said El Serafi.
“We also know emerging markets very well. I have spent the last 11 years working in the Middle East and investing in founders during revolutions like the Arab Spring. It’s great to be able to support them during these times,” he said.
