BMCE Capital Launches $4.5M Fund to Support Moroccan Tech Ecosystem
BMCE Capital Investment, a subsidiary of the BMCE Capital Group, has announced the launch of its first venture capital fund worth $4.5 million (MAD 50 million) dedicated to financing Moroccan tech startups, as first reported by Morocco World News.
The fund underscores BMCE Capital Group’s intention to assist Moroccan startups in their early stages. In addition, to meet the target capital, the fund plans to raise funds from renowned Moroccan investors and key players in the Moroccan economy in the coming months.
The BMCE venture capital is expected to connect its portfolio of startups to an extensive network of Moroccan and global investors, in addition to securing necessary funds for the local startup ecosystem.
Morocco’s Capital Market Authorities (AMMC) approved the establishment of the new fund on July 29, which will be partially funded by BMCE Group, one of the country’s leading financial institutions. The National Company for Guarantee and Business Financing has granted the venture the Damane Capital Risk guarantee (SNGFE).
A Look into the Moroccan startup ecosystem
Morocco’s startup ecosystem is gradually emerging as a leading regional hub. According to Statista’s data, Moroccan tech startups secured a total funding value of over $28 million in 2021. The value increased significantly compared to the previous years. In 2019, Moroccan tech startups raised only $617,000. The number of tech startups raising funding in the country also increased from two in 2019 to 15 in 2021.
Moroccan youth are becoming more entrepreneurial. This acceptance, combined with the launch of nationwide incubator programs, has aided in broadening the scope of the local startup ecosystem, with Fintech firms dominating the Moroccan and African scenes.
The pressing need to address pressing issues such as failing public services and the effects of climate change prompted an increase in innovation in agriculture, education, and health to improve living conditions.
To support the growing startup ecosystem in Morocco, global accelerators such as Plug and Play have entered the market. Meanwhile, local financial institutions have recognized the importance of supporting innovation, research, and entrepreneurship to advance local economies and address unemployment. For example, Morocco’s Al Mada holding launched Africa’s largest venture capital fund in March to invest in fast-growing startups.
Morocco currently has the sixth largest startup ecosystem in Africa and the second largest in North Africa, owing to its “affordable and stable” conditions for entrepreneurs and startups, particularly in the fintech and e-commerce sectors.
The Moroccan position is bolstered further by the growing number of startups, particularly in the economic capital, Casablanca, which was recently ranked as the top regional challenger to MENA’s biggest startup hubs like Cairo, Dubai, Riyadh, and Tel Aviv.