MENA – Seedstars Capital, an alternative investment platform focused in emerging and frontier markets, has announced US$20 million first closing of its second seed fund for emerging markets, Seedstars International Ventures II.
Over the next three years, this vehicle intends to invest in a hundred companies in the pre-seed and seed stages across African, Asian, the Middle Eastern and North African (MENA), and Latin American startups.
Investments will prioritise enterprises in the banking, trade, health, and education sectors.
“Our risk-mitigation strategy innovates on multiple levels, whether through geographic diversity, portfolio construction method, value generation platform, or blended finance structure,” said Charlie Graham-Brown (pictured), Partner at Seedstars, Seedstars Capital’s parent business.
“We have a unique recipe, an outstanding staff, and backers in place to help digital entrepreneurs all around the world.”
Long before this new fund, Seedstars’ original vehicle for emerging markets invested in 81 startups in over 30 countries, with commitments in numerous locations throughout the world, including Nigeria.
Venture capital flows into emerging nations account for only 4% of worldwide volumes, according to Seedstars Capital. They have, however, increased at a pace of 40% year on year. “That is six times faster than the global average.”
The African tech ecosystem, according to the firm, is thriving. Since 2019, Nigeria, Egypt, Kenya, and South Africa have garnered 83 percent of all funding in the region and inked 78 percent of all US$1 million-plus agreements in Africa.
Seedstars is gearing up to launch Seedstars Capital, a platform for a number of regional and thematic funds. Since its inception in 2013, the firm has assisted more than 90 venture capital ecosystems in emerging markets.
Beyond financial funding, the platform gives the required tools and processes, access to a network of mentors, and fundraising assistance to help the companies in its portfolio develop
Last year, Seedstars Africa Ventures partnered with French private equity firm LBO France towards its US$100 million fund for early-stage African tech start-ups.
The fund focuses on financing innovative companies operating in Sub-Saharan Africa in seed and Series A rounds and is just closing its third investment, in an agri-tech company after previous deals in education and connectivity, invests up to US$2 million, and has the capacity to reinvest.
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