A Nairobi-based firm Seedstars African Ventures International received over Ksh4.8 billion in funding from the European Investment Bank (EIB) on Wednesday, January 10.
The firm, a venture capital organisation, provides funding for innovative startups and high-growth companies within Sub-Saharan Africa.
On Wednesday, the company received the money as part of the capital expected to be invested in innovative tech startups within Africa.
While issuing the grant the European Investment Bank (EIB), noted that the money was part of the European Union's (EU) commitment towards supporting innovation in Sub-Saharan Africa.
The EU backed the funding, through Ksh3 billion (US$20 million) from the African Caribbean, Pacific Trust Fund and Ksh1.5 billion (US$10 million) from the Boost Africa programme.
Seedstars Africa Ventures I, which has its headquarters located in both Nairobi and Paris collaborates with global entrepreneurship supporter Seedstars and multi-specialist investment platform LBO France.
While receiving the funding, Seedstars applauded the EIB for its recognition of its efforts and pledged to continue the funding for African companies.
“The anchoring ticket provided by the European Investment Bank is a testament to our investment thesis and the work we do across Africa”, noted Seedstars.
“It signals the relevance of our positioning as well as the effectiveness of our support to portfolio companies. This recognition will further help us onboard both African and foreign investors in the Fund to reach our target size,” Seedstars added while receiving the grant.
Investment in the technology start-up industry has recorded a significant rise in Kenya with the country receiving the largest funding amount in Africa, exceeding industry giants, Nigeria and Egypt.
On Tuesday data by research outfit 'Africa: The Big Deal’ showed that Kenya emerged top globally after securing Ksh124 billion (USD800 million) worth of start-up capital in 2023.
In response to the report, the President stated that the funding received was a result of his government’s efforts to create an enabling environment for tech startups.
"Proud that Kenya leads Africa in startup capital, securing an impressive $800 million (Ksh 124 billion) in 2023. Our strategic reforms have enhanced the business environment, positioning Kenya as the preferred choice for investors," stated the Head of State.
