New fund targets Moroccan startups

BMCA Capital Investment has launched a new venture capital fund to help Moroccan startups.

The Moroccan based fund is raising money from local and overseas investors, hoping to hit MAD 50m ($4.5m).

šŸ‘‰Why it matters: Morocco is a hot spot for startups, many in the fintech and agritech spaces. Local and international investors are seeing the opportunties for Moroccan and wider Africa startup situations as a chance to get in on the ground floor. Emerging markets are a new target for the VCs.

Morocco is on VC radars thanks to the success of some of its early stage startups. The Moroccan ecosystem is supported by increasing numbers of entrepreneurs, incubators and accelorators. Fintechs are especially popular.

The country’s Goverment and regulators are also working hard to build the right environment and attract talent. The country also has a pressing need to improve its infrasctruture. Moroccan startups appear to have many of the solutions.

šŸšHeadwind, or a fast route to success: VCs are finding it harder going in the maturer markets as equity financing is not so attractive in the current economic climate. This is a shock to founders who were brought up an a pipeline of fresh of money. VCs are now changing the rules with down rounds and haircuts, and an insistence on profitability over growth. Emerging market startups are risky, but are less demanding in cash needs.

BMCE Capital Investment is part of the BMCE Capital Group.

The new fund was approved by Moroccoā€™s Capital Market Authorities back in July. BMCE is financing part of the fund.

Morocco boasts the sixth largest startup ecosystem in Africa and second in North Africa.