Al Mada Holding Group, a prominent private investment fund based in Casablanca, has launched a new venture capital firm, Al Mada Ventures (AMV), with a capital pool of $110 million. This Africa-focused firm aims to address the gap in growth-stage investing by providing patient capital sourced exclusively from Africa.
Key Takeaway
Al Mada Ventures (AMV) has launched a
10 million venture capital firm to address the gap in growth-stage investing in Africa, utilizing capital sourced exclusively from the continent.
Observing the Growth of Venture Capital in Africa
Over the years, Al Mada Holding Group has strategically acquired majority shareholdings in various private companies across 27 markets, with a significant presence in 25 African markets. Recognizing the remarkable growth of the venture capital asset class in recent years, Al Mada observed the need to help businesses scale and foster innovation within its portfolio. The firm also aims to increase market share across different sectors and stay at the forefront of disruptive technologies.
Addressing the Gap in Growth-Stage Investing
AMV’s approach is unique as it seeks to fill the dearth of capital at the Series A and B stages, which is typically dominated by development financial institutions and foreign investors. The firm has attracted top-tier corporate and institutional investors based in Africa to be part of its evergreen fund.
Investment Thesis of an Evergreen Fund
AMV’s investment thesis revolves around bridging the communication and feedback gap between corporates and startups. The firm aims to connect startups with Al Mada’s subsidiaries to foster collaboration and create value for shareholders and ecosystems.
Building Bridges in Africa
With a deliberate positioning to capitalize on sectors of expertise held by Al Mada and other Limited Partners, AMV aims to help startup founders scale their products and services across different regions in Africa. The firm also seeks to create bridges with regions where it aims to build its presence, such as East Africa, southern Africa, and Anglophone West Africa.
Growth-Stage Investor with an Opportunistic Approach
Although AMV initially focused on growth-stage investing, it has shifted its approach to also include seed and Series A startups due to a relatively low quality of startups in the market. The firm intends to build a portfolio of about 20 companies with tickets ranging from $500,000 to $1 million for seed opportunities and $2-6 million for Series A and Series B opportunities.
Maturing Venture Capital Ecosystem in Morocco
The launch of AMV is a significant indicator of the maturing venture capital ecosystem in Morocco. The firm’s presence, along with the emergence of other local funds, reflects the growth and potential of the venture capital landscape in the country.
As Al Mada Ventures embarks on its journey to support African entrepreneurs, its commitment to deploying capital for the continent’s growth and development is a testament to the bright future and resilience of the African population.
