Abu Dhabi’s Mubadala Investment Company and France’s Bpifrance have collaborated on an Africa-focused venture capital fund, marking a significant investment in the continent’s startup ecosystem.
Simultaneously, the Dubai Future District Fund, initiated by Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum in 2020, has also joined forces with the Partech Africa II VC fund, although the specific financial details of their investments were not disclosed.
Partech Africa II, managed by Paris-based technology investment firm Partech, boasts a substantial capital pool of €280 million ($305 million), making it the largest VC fund dedicated to African technology startups.
The fund is poised to provide initial investments ranging from $1 million to $15 million, spanning from seed to series C rounds, to facilitate the global expansion of African companies and startups.
Andres Rodenas de la Vega, head of the France investment programme at Mubadala, expressed enthusiasm for the co-investment partnership with Bpifrance, highlighting Africa’s rapid emergence as one of the world’s most dynamic markets for venture capital.
The partnership between Mubadala and Bpifrance, established in June 2021, aims to deploy up to €350 million through fund and direct investments in private equity and venture capital, supporting African startups and small and medium-sized enterprises.
Partech also revealed that the final closing of Partech Africa II was oversubscribed, attracting a diverse range of global institutions, including pension funds and sovereign funds from the US and Middle East, as well as new strategic investors like the Dubai Future District Fund and Africa Re.
Bpifrance’s involvement in Partech’s first Africa fund, which concluded with a final close of €125 million in January 2019, underscores its commitment to fostering the growth of African startups.
Partech Africa I, the predecessor fund, has built a portfolio spanning 27 countries and diverse sectors such as fintech, healthtech, logistics, and edtech. This portfolio has been instrumental in attracting over 10 percent of the VC investments in Africa between 2021 and 2022.
