Seedstars Capital has teamed up with Swiss philanthropic foundation Fondation Botnar to launch a brand new fund called Seedstars Youth Wellbeing Ventures that will focus on early-stage startups based in Africa.
The $20 million investment mandate targeting early-stage startups in Africa is focused on improving the wellbeing of people below 30 years in low-and-middle-income countries, according to TechCrunch.
The fund will aim to back pre-seed to Series A startups including those that advance health services, environmental sustainability and ecological resilience, local food security, water and sanitation, waste management, affordable housing, access to employment and safe and sustainable transportation in countries such as Tanzania, Ghana, Senegal, Morocco, and Egypt.
Per the report, the mandate will provide initial capital of $250,000 and follow-on investments of up to $750,000, and they have plans to invest in at least seven startups annually over the course of the next five years. This will be an ideal fit for those Africa based startups who are using a VC investor search engine to connect with the right companies, as the solution is here.
Additionally, Seedstars Youth Wellbeing Ventures aims to make co-investments alongside like-minded investors with the hope of encouraging more capital inflow into Africa.
“There is a major gap in the wellbeing of youth if we compare developed countries with emerging markets. Our goal is to transform cities by creating inclusive urban environments and systems that are truly fit and ready to support the health and wellbeing of the young people who live in emerging markets through the transformational power of digital technology,” Benjamin Langer, partner at Seedstars Capital said, per the report. “By investing in purpose-related venture-backed companies, we can accelerate our target outcome to improve the wellbeing of young people in emerging markets. We are comparing the “acceleration” with some other actions that the partners are pursuing like grants or donations in emerging markets.”
“Fondation Botnar is excited to join Seedstars in supporting companies that are making a difference” Antoine Veyrassat, the venture philanthropy lead at Fondation Botnar said, according to the report.
“Our shared commitment to improving the health and wellbeing of young people aligns strongly with our investment strategy that takes a market-based approach to philanthropy in addition to our other philanthropic funding, especially as rapid urbanization and the increasing number of young people living in cities present both unique challenges and opportunities,”