Middle East and North African (MENA) early-stage investment company Flat6Labs has announced the International Finance Corporation and the Social Fund for Development (SFD) as the lead investors in its EGP75 million (US$4 million) Egypt-focused venture capital seed fund.
Flat6Labs, which has headquarters in Cairo, Jeddah and Abu Dhabi, is a regional startup accelerator programme that has invested in 54 companies to date.
Its new fund will see IFC provide up to US$2 million in equity financing to Flat6Labs Cairo, which will invest in about 100 Egyptian tech startups and support more than 300 entrepreneurs over the next five years.
Through its four-month accelerator programme, Flat6Labs will provide seed funding, strategic mentorship, and networking opportunities, helping entrepreneurs and their startups become investment-ready.
“We’re very excited to have received the support of IFC, through its Startup Catalyst programme, and the SFD, through its first investment in an accelerator program,” said Ramez El-Serafy, chief executive officer (CEO) of Flat6Labs.
“Their support and trust in Flat6Labs’ track record and its ability to enable seed-stage startups is wonderful. It will help create opportunities for young Egyptian entrepreneurs and is a great testament to both our funding model and IFC’s commitment to pursue economic growth in Egypt.”
IFC CEO Philippe Le Houérou said Egypt has tremendous long-term potential, given its large workforce, strategic location, and well-established manufacturing sector.
“The country’s recently announced economic reforms will help it capitalise on that promise – by breathing new life into the private sector, which can drive innovation and employment, and create lasting opportunities for all Egyptians.”
The fund will support up to 20 startups each year with an average seed investment of EGP350,000 (US$18,500).