Jake BrightContributorJake Bright is a writer and author in New York City.
He is co-author of The Next Africa.More posts by this contributorAfrica Roundup: African startup investments turn to fintech this winter seasonNigeria Piggybank.ng raises $1.1M, announces group investment productWeeks after French President Emmanuel Macronunveiled a $76M African startup fundat VivaTech 2018, TechCrunch paid a visit to theFrench Development Agency(AFD) — who will administer the new fund — to get more details on howle noveau fondswill work.The $76M (or€65M) will divvy up into three parts, according to AFD Digital Task Team LeaderChristine Ha.&There are €10M [$11.7M] for technical assistance to support the African ecosystem… €5M will be available as interest free loans to high potential, pre seed startups…and…€50M [$58M] will be for equity-based investments in series A to C startups,& explained Ha during a meeting in Paris.The technical assistance will distribute in the form of grants to accelerators, hubs, incubators, and coding programs.
The pre-seed startup loans will issue in amounts up to $100K &as early, early funding to allow entrepreneurs to prototype, launch, and experiment,& said Ha.The $58M in VC startup funding will be administered throughProparco, a development finance institution—orDFI—partially owned by the AFD.
The money will come &from Proparco balance sheet&…and a portion &will be invested in VC funds active on the continent,& said Ha.Proparco already invests in Africa focused funds such asTLcom CapitalandPartech Ventures.
&Proparco will take equity stakes, and will be a limited partner when investing in VC funds,& said Ha.Startups from all African countries can apply for a piece of the $58M by contacting any ofProparco Africa offices(including in Casablanca, Abidjan, Douala, Lagos, Nairobi, Johannesburg).And what will AFD (and Proparco) look for in African startup candidates &We are targeting young and innovative companies able to solve problems in terms of job creation, access to financial services, energy, health, education and affordable goods and services…[and] able to scale up their venture on the continent,& said Ha.The $11.7M technical assistance and $5.8M loan portions of France new fund will be available starting 2019.
On implementation, AFD is still &reviewing several options…such as relying on local actors through [France&s] Digital Africa platform,& said Ha.Digital Africa­—a broader French government initiative to support the African tech ecosystem—will launch a new online platform in November 2018 with resources for startup entrepreneurs.So that the skinny on France new Africa fund.
It adds to a load of VC announced for the continent in less than 15 months, including$70 for Partech Ventures, TPG Growth $2BN Rise Fund, and$40M at TLcom CapitalThough $75M (and these other amounts) may pale compared to Silicon Valley VC values, it a lot for a startup scene that — at rough estimate—attracted only$400M four years ago.African tech entrepreneurs, you now have a lot more global funding options, including from France.