Flat6Labs, an Egypt-based seed-stage accelerator, is one of the most active VCs in Africa, having invested in over a hundred startups across the Middle East and North Africa (MENA) region.
Now, after 11 years, the firm is expanding its reach into East and West Africa with a $95 million Africa Seed Fund. This marks its first venture outside of MENA.
Flat6Labs is aiming to gradually increase its allocations into sub-Saharan Africa, with two-thirds of its funds still being directed towards businesses in North Africa. An initial close is anticipated before the end of the year.
The focus countries include Kenya and its neighboring markets in East Africa, as well as the Anglophone and francophone sides of West Africa, including Nigeria, Senegal, Côte d’Ivoire, Ghana and Cameroon.
This is Flat6Labs’ first fund for startups across multiple countries as it previously established country-specific funds, such as the $10 million Anava Seed Fund for Tunisian startups.
Flat6Labs plans to allocate funds across all sectors, with a focus on fintech, healthtech, logistics, mobility, cleantech, agtech, retail and e-commerce startups. It will invest between $150,000 and $400,000 initially and up to $500,000 for further support. Prior funds have seen investments ranging from $30,000 to $100,000.
The cohort brings together founders from various regions, cultures and backgrounds to collaborate, exchange ideas, and gain access to new markets. Every six months, 10 to 15 startups will be admitted into the accelerator’s seed program, with the aim of supporting up to 170 startups over the next five years.
Flat6Labs, asserting $100 million in assets under management, was launched in Egypt, and since then has established several funds and accelerator programs with partners in seven countries, including Saudi Arabia, the UAE, and Lebanon.
Backers of previous funds include the International Finance Corporation (IFC), MSME Development Agency, Egypt Ventures and the Egyptian American Enterprise Fund. Now, with the launch of the accelerator, it is aiming to provide the necessary support African startups need, especially in a difficult fundraising landscape.