Morocco’s Al Mada Holding Group, an investment firm managed by the Moroccan royal family has announced the launch of pan-African venture capital to invest in fast-growing startups on the continent. With a budget of $109.5 million – this is the largest venture capital fund with African funding – the Al Mada-backed venture capital aims to attract innovative investors and take part in the exponentially-growing African startup landscape.
The venture capitalists will take advantage of the enormous growth potential of African entrepreneurs. Despite receiving only 1% of worldwide venture capital financing, it has risen 12-fold in the previous five years. Venture capital is intended to aid in the formation and growth of tech-enabled firms in emerging areas like fintech, renewable energy, and edtech.
Venture capital is intended to operate as a vertical accelerator, assisting established firms in obtaining finance for expansion. The Al Mada venture fund will provide startups with access to the fund’s broad network of partners in addition to direct investment. Al Mada, which bills itself as a vertical accelerator venture capital firm, intends to sustainably invest in Africa’s talent and future sectors.
“Al Mada is delighted to bring its 100-year experience as a pan-African inverter to young innovative entrepreneurs who are building the Africa of tomorrow. Startups will therefore be able to rely on our solid expertise and that of our teams specializing in Venture Capital.” The Moroccan firm said in a press release.
Omar Laalej, a former AfricInvest executive, was appointed in February to lead this venture capital division.
Al Mada aspires to boost venture capital investments throughout the continent. The Fund will focus on Moroccan and African entrepreneurs, taking minority stakes in them and facilitating their access to networks, strategic collaborations, and financial resources.
Al Mada has a broad investment portfolio that spans 24 African countries and 7 business sectors, including financial services, telecommunications, real estate, and energy.
The exponential growth in fintech startups is helping African startups thrive. African startups raised $4.65 billion in total funding in 2021. Experts estimate that Africa’s startup ecosystem could reach $7.3 billion in 2022, after a record-breaking seven-week period in which African startups raised $1 billion.