Flat6Labs Launches $95 Million Seed Fund for Africa-Based Tech Startups

Flat6Labs has launched a new $95 million seed fund focused on early-stage tech startups in Africa.

The Africa Seed Fund (ASF) will be headquartered in Egypt and will focus on North Africa, West Africa and East Africa, Flat6Labs said in a Tuesday (March 14) press release.

“Africa is one of the most exciting regions to invest in tech and innovation, with huge untapped potential and unique business opportunities,” ASF General Partner Ramez El-Serafy said in the release. “We will leverage our experience and knowledge to guide the startup founders to create truly scalable, investment-ready, Africa-based companies.”

Over the next five years, the ASF will invest in 160 pre-seed to pre-Series A companies focusing on HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech and other sectors that accelerate digital inclusion and address social and environmental challenges, according to the press release.

It will also provide these companies with regional business support, access to local mentors, and regulatory and logistical support through Flat6Lab’s Africa Seed Program (ASP), the release said.

“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 providing resources to the brightest of them, while accelerating the future of the African continent,” ASF General Partner Dina el-Shenoufy said in the release. “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.”

This announcement comes about a month after Startup Wise Guys raised 25 million euros (about $27 million) to invest in startups in “overlooked” markets, including southern Europe, Africa and Latin America.

“[These are] markets with some unfair limitations in terms of early-stage funding accessibility or lack of specific expertise in the ecosystem, but with high technical talent and eagerness to ‘catch up’ with the rest of the world,” Startup Wise Guys Global CEO Cristobal Alonso said at the time.

Earlier in February, Partech closed its second Africa fund at 245 million euros (about $262 million) and said Partech Africa II is designed to support the next generation of entrepreneurs across the continent.

“We launched this strategy when less than $400 million were invested annually in equity on the continent,” Partech General Partner Tidjane Deme said. “African tech companies are now raising $6 billion annually.”