Accelerator launches $5.6 million fund for startups

Media reports reveal that Flat6Labs of Egypt has announced that they are launching a $5.6 million investment fund for startups. This is in participation with the Social Fund for Development amongst other investors.

Flat6Labs, an affiliate of Egyptian venture capital company Sawari Ventures, is a regional startup accelerator program that fosters and invests in bright and passionate entrepreneurs with cutting-edge ideas.

Seed funding, strategic mentorship, a creative workspace, a multitude of perks, entrepreneurship-focused business training, and directly support for startups through an expansive network of partner entities, mentors and investors, are some of the services it offers.

According to Al Mal newspaper, the first closing of the fund will be in 60 days to the value of $3.3 million. The second closing valued at $2.2 million will be in a year.

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Sawari Ventures partner Wael Amin said the new investment fund would finance up to 20 startups a year for five years, and each startup would receive $11,000, according to an Innovation Village report.

Amin said that the first round would launch in 2016 with applications opening in June, the report further revealed.

Flat6labs has invested $1.1 million in about 46 startups in Egypt only, working with more than 180 mentors and 30 partners locally and globally, since October 2011 when it kicked off operations.

According to Innovation Village. last month the accelerator graduated six of 13 startups accepted into its second four-month Abu Dhabi program at the Fall 2015 Demo Day, with one revealing that it had secured car hailing dynamo Careem as a customer.