More posts by this contributorWeeks after French President Emmanuel Macronunveiled a $76 million 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 $76 million (or65 million) will divvy up into three parts, according to AFD Digital Task Team LeaderChristine Ha.There are 10 million [$11.7 million] for technical assistance to support the African ecosystem 5 million will be available as interest-free loans to high-potential, pre-seed startupsand50 million [$58 million] 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 $100,000 as early, early funding to allow entrepreneurs to prototype, launch and experiment, said Ha.The $58 million in VC startup funding will be administered throughProparco, a development finance institution orDFI partially owned by the AFD.
The money will come from Proparcos balance sheetand 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 $58 million by contacting any ofProparcos Africa offices(including in Casablanca, Abidjan, Douala, Lagos, Nairobi and 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 $11.7 million technical assistance and $5.8 million loan portions of Frances new fund will be available starting in 2019.
On implementation, AFD is still reviewing several optionssuch as relying on local actors through [Frances] 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 thats the skinny on Frances 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 Growths $2 billion Rise Fund and$40 million at TLcom Capital.Though $75 million (and these other amounts) may pale compared to Silicon Valley VC values, its a lot for a startup scene that at rough estimate attracted only$400 million four years ago.African tech entrepreneurs, you now have a lot more global funding options, including from France.