12 Jul 2017
With commitments of EGP 20mn from Egypt Ventures and EAEF; Flat6Labs Cairo Announces First Closing of EGP100m Fund To Support 100 Egyptian Startups
Cairo, Tuesday 11 July 2017 – Flat6Labs, the leading startup accelerator program in the MENA Region, announced today the first closing of its EGP100m Cairo fund, Flat6Labs Accelerator Company (FAC). FAC’s first closing coincides with the newly committed investments from Egypt Ventures Egypt Ventures- a company of the Egyptian Ministry of Investment and International Cooperation (MIIC) and managed by NI Capital; and the Egyptian-American Enterprise Fund (EAEF).
“Through the investment in Flat6Labs’ new fund, MIIC aims to support entrepreneurs to develop their skills, provide an adequate environment for rendering their projects successful, help them choose an adequate labor market, improve their business and increase startups, and provide administrative support, legal consultations and trainings,” stated Dr. Sahar Nasr, Minister of Investment and International Cooperation.
The commitment from MIIC coincides with an equal investment from the Egyptian-American Enterprise Fund (EAEF). Ms. Amal Enan, Executive Director at EAEF notes “with a firm commitment to support and grow Egypt’s entrepreneurial talent, EAEF has identified Flat6Labs as a pivotal player in the value-chain: feeding risk-taking entrepreneurs into the job creating private sector that EAEF looks to develop.” She further added, “EAEF looks to address gaps in financing and we identified the shortage of seed stage capital in Egypt, a critical ingredient to nourishing an entrepreneurial and risk taking culture for inclusive social and economic development.”
Investments by Egypt Ventures and EAEF follow the commitments made in December 2016 by the International Finance Corporation (IFC) – a member of World Bank Group, through its “Startup Catalyst” initiative; and the Medium, Small and Micro Enterprises Development Agency (Social Fund for Development previously) to support Flat6Labs Cairo’s mission to back Egyptian entrepreneurs through its accelerator program.
FAC will allow Flat6Labs Cairo to directly support over 100 Egyptian early stage-startups over the upcoming five years by providing seed funding of up to EGP 1mn per startup, training, mentorship and a suite of services allowing Egyptian startups to reach their customer base and scale their operations locally and regionally. Flat6Labs Cairo would create a steady pipeline of investor-ready startups bolstering the startup scene, as well as creating more than 1,000 high impact jobs in the Egyptian market.
“Today’s announcement marks a significant step forward for Egyptian entrepreneurs and startups and we’re thrilled to be spearheading it with our flagship accelerator program in Cairo.” said Mr. Ahmed El Alfi, Founder of Flat6Labs. “The new investment from the Ministry of Investment and International Cooperation and EAEF reflects their strong commitment to support the local Egyptian talent and improve capital availability for Egyptian startups.
Flat6Labs Cairo’s ninth accelerator cycle is scheduled to start later this summer accepting a new batch of promising Egyptian startups. The cycle has witnessed an unprecedented number of applicants, with over 500 companies competing for a space in the accelerator and to receive seed funding from the newly launched fund.
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