Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Innovation Hub

Egypt's Flat6Labs launching $95M seed fund for African startups

Article Image
Middle East and North Africa (MENA) seed investor, Flat6Labs, has announced the launch of a new $95 million seed fund aimed at nurturing the growth and development of early-stage tech startups on the African continent.

Flat6Labs has been investing in promising startups in North Africa since it was founded 12 years ago, with more than $16 million invested in startups, and over $191 million raised in follow-on funding. It says it has created more than 2,500 direct jobs and 80,000 indirect jobs through its first two funds in Egypt and Tunisia.

Headquartered in Egypt, the new Africa Seed Fund (ASF) will focus on three main investment territories: North Africa, West Africa and East Africa.

Flat6Labs said it will extend its reach into several new territories including Nigeria, Ghana, Kenya, Morocco and Senegal, amongst others.

Impact investing

The fund will invest in more than 160 early-stage startups over the next five years that operate in the technology sector in Africa.

The aim is to focus on impactful sectors that accelerate digital inclusion through the use of information technologies and industries which contribute to addressing social and environmental challenges, such as health tech, fintech, edtech, green tech, agritech, climate tech, etc.

Flat6Labs joins the likes of Axian Group which earlier this month also announced a new investment arm aimed at funding Africa's fledgling technology startups.

"We are extremely excited about the launch of the Africa Seed Fund. Africa is one of the most exciting regions to invest in tech and innovation, with huge untapped potential and unique business opportunities. We will leverage our experience and knowledge to guide the startup founders to create truly scalable, investment-ready, Africa-based companies," Ramez El-Serafy, general partner for ASF and Flat6Labs CEO said in a statement.

The significant influx of capital from the ASF has the potential to create more than 14,000 jobs, provide support to more than 1,200 founders with 20% female participation, and generate revenue of more than $700 million, the company said.

Flat6Labs' Africa Seed Fund plans to invest in 160 early-stage startups over the next five years that operate in the technology sector in Africa. (Source: Image by ASphotofamily on Freepik)
Flat6Labs' Africa Seed Fund plans to invest in 160 early-stage startups over the next five years that operate in the technology sector in Africa.
(Source: Image by ASphotofamily on Freepik)

The African tech ecosystem has continued to grow in 2022. According to the Partech 2022 Africa Venture Capital Report, funding for the African sector increased to $6.5 billion in 2022, up from $6 billion in 2021.

Investment opportunities

Flat6Labs' Africa Seed Fund will invest in companies that are in pre-seed up to pre-series A stage, with tickets ranging from $150,000 to $500,000 through the Flat6Labs Africa Seed Program and will also be providing seed tickets to seasoned founders independently of the program. ASF will also be able to reinvest into portfolio companies in follow-on rounds.

"The Africa Seed Fund is well-positioned to be a catalyst for driving long-term positive change that the youth of Africa really deserve, and to be providing resources to the brightest of them, while accelerating the future of the African continent. The program is designed to provide entrepreneurs with the resources that they need to be able to grow and to scale-up their businesses to new heights," added Dina el-Shenoufy, general partner for ASF and Flat6Labs CIO.

"We have observed that the entrepreneurial market has matured over the years with a new wave of founders that are more experienced. We will also cater for these founders and offer higher ticket sizes to support these companies and a different track to the program," el-Shenoufy added.

Flat6Labs' Africa Seed Program provides portfolio companies joining the program with seed funding, regional business support, access to a regional network of seasoned local mentors, as well as regulatory and logistical support to set up and grow their businesses.

The program also adapts to be regional with a hybrid model allowing for physical on-the-ground interactions in local markets while combining virtual elements that allow for cohort interactions across the entire fund region.

Two cohorts will be run annually, with an average of ten to 15 startups per cohort. The first investments in the selected startups are planned to be made before the end of 2023, Flat6Labs said.

The Africa Seed Fund is being established with the support of the GIZ on behalf of the German government, and through the Egyptian Agricultural Innovation Project (AIP) and Scaling Digital Agricultural Innovations through Start-ups project (SAIS).

Related posts:

*Top image is of Walid Triki, Flat6Labs general manager for Tunisia; Dina el-Shenoufy, Flat6Labs CIO and ASF general partner; and Ramez El-Serafy Flat6Labs CEO and ASF general partner. (Source: Flat6Labs)

— Paula Gilbert, Editor, Connecting Africa

Innovation hub


Five mobility startups to watch in 2024

Connecting Africa has compiled a list of five mobility startups that are making a difference in the communities they serve.


Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuz program and the Orange Digital Center network.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives


Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.


The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives


How e-mobility could transform Africa's transport sector

By Francis Hook

ICT analyst Francis Hook delves into Africa's e-mobility sector and unpacks the challenges faced locally and the benefits the move to electric vehicles could bring to urban transport systems.


Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up

Sign Up
Tag id test-002