49845 - ISC-F6L Africa Seed Fund

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Summary of Investment Information

Project Number

49845

Company Name

ISC-Flat 6 Labs Africa Seed Fund I

Date SPI Disclosed

Jan 31, 2025

Country

Egypt, Arab Republic of

Region

Africa

Projected Board Date

May 31, 2025

Environmental Category

FI-2 - Limited

Status

Pending Signing

Last Updated Date

Dec 16, 2025

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Dec 15, 2025

Sector

Other Non-Private Equity Fund

Additional Project Attributes

Blended Finance

Project Description

IFC is considering an equity investment of up to US$6 million, processed under the IFC Startup Catalyst Program (“ISC”), in Africa Seed Fund Coöperatief U.A. (“Flat6Labs Africa” or the “Fund”), a Netherlands-based accelerator and VC fund focusing on pre-Seed/Seed stage investments in North, West, and East Africa. The Fund has a target size of US$85 million. The Fund will be managed by Flat6Labs For Financial Consulting S.A.E. (“Flat6Labs” or the “Fund Manager”). The Fund will be supported by the Blended Finance Facility (“BFF”) of the Women Entrepreneurs Finance Initiative (“WeFi”).

Associated Advisory Engagement

The Project will benefit from an advisory package which will support the Fund’s gender strategy and its expansion into more challenging and strategic fragile and conflict-affected states.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	5.0

Development Impact

The Fund is expected to increase access to seed and early-stage venture capital financing and value creation services for digital entrepreneurs in Africa. A material share of investees is expected to have a woman co-founder, thereby addressing gender divides in access to capital in the region. The project is also expected to contribute to create a competitive digital entrepreneurship ecosystem in Africa, by supporting the development of local VC markets, via demonstration and replication, enabling frameworks, and capacity building channels.

IFC additionality is both financial and non-financial. Financial additionality involves the provision of IFC’s own account equity, as IFC’s participation, as a longstanding partner in previous funds, will enable the Fund Manager to achieve its first close target in a challenging fundraising context. Non-financial additionality includes non-commercial risk mitigation, as IFC's participation as one of the main anchors of the Fund will help signal confidence in the Fund Manager, thereby potentially crowding in new investors for final close. Furthermore, IFC will share its knowledge and networks in Africa with the Fund Manager, and support capacity building through Startup Catalyst Booster and the ScaleX program, including the development of a gender action plan for the Fund.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Level of Aggregated Successive Funding Raised From Third Parties : investees	%	Not Available	Not Available	Not Available
Number of VC Fund Managers with at least 1 fund in the market beyond the Project	Funds	Not Available	Not Available	Not Available
Percentage of Investees With Female Founders/Cofounders	women	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project is an equity investment in a VC fund focusing on Seed stage technology-enabled companies in Africa. The Fund will invest at the pre-Seed to Seed stage as a first check investor, with follow-ons up to pre- Series A. Key targeted sectors include fintech, health-tech, logistics, climate-tech, ICT, and edtech which are expected to have potential limited adverse environmental and/or social risks or impacts that are few in number, generally site specific, largely reversible, and can be readily addressed through mitigation measures. Therefore, the proposed project has been classified as a Category FI-2 project according to IFC Sustainability Policy. The key risks and impacts of the project derive from the Fund’s capacity to identify and manage potential E&S risks associated with its investment activities. These risks are typically associated with labor and working conditions, occupational health and safety, amongst others.
The Fund will not invest in any coal-related activities and higher risk business activities that may include: (i) involuntary resettlement; (ii) potential adverse impacts on Indigenous Peoples; (iii) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (iv) significant occupational health and safety risks The Fund will also be restricted from funding medium to high risk Financial institutions to prevent the double intermediation risks. IFC's applicable E&S requirements for this project will be to comply with the Exclusion List and the National E&S Laws in the countries where portfolio companies are located, and IFC Performance Standards (as applicable). The Fund will also be required to assess the labor risks associated with the GIG economy in its countries of operations.

Flat6Labs' ESG policy, established in July 2021, integrates E&S considerations into its investment decision-making process to ensure compliance with national laws and the Exclusion List. The policy mandates that portfolio companies adhere to sound environmental and social practices, with Flat6Labs providing support to rectify any non-compliance. Environmental requirements include efficient resource use, safe disposal of waste, and avoidance of hazardous materials. Social requirements emphasize non-discrimination, fair labor practices, and safe working conditions. Companies must report bi-annually on their ESG performance, with immediate disclosure of any significant breaches. Flat6Labs also maintains an Exclusion List of prohibited activities. However, this policy is required to be enhanced to integrate the procedures and tools necessary for implementation. In terms of resources, the Fund Manager does not have a dedicated E&S officer. As part of this project, the Fund is required to (i) officially appoint an E&S Officer, (ii) reinforce E&S training to staff on E&S matters directly relevant to VC funds and (iii) develop and implement the ESMS, clearly articulating an E&S policy, indicating the scope and applicable requirements. To support the implementation of the ESMS, IFC will review the first three E&S due diligence reports prior to the Fund’s investment. Additionally, the Fund is required to disclose Category B investments on a yearly basis, including their names, sectors, and locations.

S.no	Title	Anticipated Completion Date
1	Nominate an E&S Officer	06/15/2025
2	E&S staff Training	09/13/2025
3	Develop an ESMS	06/15/2025

Contacts

For Inquiries About the Project, Contact

Flat6Labs for Financial Consulting
Dina el-Shenoufy
General Partner
+0235729077
dina@flat6labs.com
1 Dr. Mohamed Sobhy Street, Flat 5, Giza, Egypt
www.flat6labs.com

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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