The International Finance Corporation (IFC), the MSME Development Agency, Egypt Ventures and the Egyptian American Enterprise Fund are the anchor investors in Flat6Labs seed fund. Sawari Ventures, which just recently closed its $71 million fund, likewise participated in this second close, and it comes as not a surprise due to the fact that the company, which is extremely affiliated with the accelerator, said it would set aside 10% of its fund for Flat6Labs seed-stage companies when we covered them in April.
The 2nd close of Flat6Labs fund is the latest of 4 equity capital funds targeted at Egyptian startups. Shortly after Sawari Ventures close, Algebra Ventures revealed releasing a $90 million 2nd fund. Subsequently, GIZ Egypt launched a EUR100 million financing programme to offer approximately 4 MENA-based fund managers in between EUR25-30 million and is exclusively targeted at Egypt-based start-ups.
” At Sawari Ventures, our fund method has actually always been to designate a percentage of our fund to the seed phase, which is a totally different proposition in terms of process, assistance, and culture required,” Wael Amin, handling partner at Sawari Ventures, said in a statement. “As investors in Flat6Labs Accelerator Company, we get the chance to beneficially take part in Egyptian companies at an extremely early phase, get early indications on community trends, and visibility into the community.”
Flat6Labs is one of the continents active and well-known seed-stage accelerators. Simply in Egypt alone, it has run seven cycles and invested in 62 startups. The endeavor capital company and seed-stage accelerator offers a filter for some early-stage financiers to source which business to back (or not). A good portion of start-ups in Flat6Labs portfolio has ignited investors interests, and half of them that have actually gone on to raise more money likewise got follow-up investment from Flat6Labs, amounting to EGP145,000,000 (~$9.25 million). Some of the startups in Flat6Labs portfolio include Welnes, Glued, CreditGo and Docspert Health.
The fund had a target for EGP50 million (~$ 3.2 million) however ultimately closed at EGP207 million ($ 13.2 million).
With the close of this round, Flat6Labs has increased the check sizes to EGP1.5 million (~$ 95,000) and up to EGP3 million (~$ 191,000) in post-programme follow-on funding for chosen start-ups.
Financial investment activities in Egypt continue to acquire steam, not for startups just but also the funds backing them. Today, seed accelerator Flat6Labs announced the second close of its Egypt fund to support early-stage start-ups and provide follow-up financial investment. The fund had a target for EGP50 million (~$ 3.2 million) but eventually closed at EGP207 million ($ 13.2 million).
The accelerator launched its Cairo program in 2017 to invest in more than 100 start-ups throughout Egypt over the course of five years. With the close of this round, Flat6Labs has actually increased the check sizes to EGP1.5 million (~$ 95,000) and up to EGP3 million (~$ 191,000) in post-programme follow-on financing for chosen startups.
Subsequently, GIZ Egypt released a EUR100 million financing program to supply up to 4 MENA-based fund supervisors in between EUR25-30 million and is solely targeted at Egypt-based start-ups.