Press Releases

The deposits and consignment fund CDC and Smart Capital launch the project «Innovative Startups and SMEs»

Held by the deposits and consignment fund CDC and SMART CAPITAL, the ceremony of the official launching of the project « innovative Startups and SMEs » and « Flywheel » a project took place today, Tuesday, March 23, 2021 under the patronage of the Minister of communication technologies Mr. Mohamed Fadhel KRAIEM.

Financed by the world bank (WB), the 75 MILLION dollar-project « innovative Startups and SMEs », which will be implemented over seven years, is a part of the national program « Startup Tunisia », under the supervision of the Ministry of Communication, Technologies and Digital Transformation and of the Ministry of the Economy, Finance and Investment Support, supported by German Cooperation, aimed to catalyze the establishment and development of digital and innovative startups and SMEs, and at the same time boost and enhance the  economic and employment prospects for Tunisian youths hence promote Tunisia as a technological destination.

The project finances in its major factor the subscription of CDC to the fund of funds called « ANAVA » composed of 200 million euros target size. Co-financed by the world bank, the German development bank KfW, which will be in charge of  managing the funds of the European Union and Germany, the fund of funds ANAVA will support the financial and growth needs of startups.

The official launching of the project « innovative Startups and SMEs » will allow the improvement of holistic support to innovative Startups and SMEs since it will finance equity and quasi-equity investments and help the actors of the entrepreneurial ecosystem, notably business incubators and accelerators, improve and extend the scope of their programs, through including in particular the startups and SMEs managed by women or located in the country’s interior regions.

Today sees also the launch of the program FLYWHEEL, co-financed by the world bank and GIZ acting on behalf of the German federal ministry of economic cooperation and development (BMZ). FLYWHEEL is also a component of the support to the ecosystem of startups, and to the creation of jobs, through the special initiative « Invest for Jobs » of the BMZ. This program is set up by SMART CAPITAL and CDC.

This program will allow to create an efficient and inclusive network of ‘Startup Support Organizations’ (SSO) all over the country, to encourage their growth and implement a new state of mind focused on performance.

The « innovative Startups and SMEs » project

The « innovative Startups and SMEs » project, financed by the world bank and carried out by CDC in collaboration with Smart Capital, allows the creation of key-entities entrusted with setting up and implementing a viable pipeline for future investments.

The project will include three components, namely (i) the financing through equity and quasi-equity funds for innovative Startups and SMEs, (ii) the support to the ecosystem and business for innovative Startups and SMEs, and (iii) the management of the project and capacity-building.

The aim of the project development is to increase the access to funding and support the growth of innovative startups and SMEs. The project will contribute to the creation of more than 1800 direct jobs including 30% for women and 20% for youth aged between 18 to 35. These objectives will reinforce the actions carried out to speed up the stage of economy revival for the post COVID- 19 period.

The fund of funds ANAVA

ANAVA is the first fund of funds in Tunisia, that testifies to Tunisia’s will to support startups and private sector investments and develop a vibrant ecosystem of startups over a ten-year period.

To do so, the fund of funds will inject high capital in the venture capital ecosystem in Tunisia in order to significantly develop investment in startups. The first fund of funds dedicated to Startups in Tunisia and in Africa, denominated in foreign currency (Euro), provides the possibility to underlying funds in order to invest in Tunisia and abroad. It is a solution to the problems of financing and internationalization of startups in Tunisia.

The objective is to launch several venture capitals funds (child funds) dedicated to Tunisian startups. These underlying funds will invest at every stage of startups development, specifically the stages of seed, launch and post-start.

The 200 million-euro-target size funds, with a first closing of 40 million euros totally subscribed by CDC through world bank financing, is managed in accordance with the best international standards.

The FLYWHEEL programs

Financed by the world bank and GIZ, FLYWHEEL is a program of financial support meant for Startups and supporting structures. the aim of this program is providing them with a productive and inclusive ecosystem propitious for their development and to create jobs in digital economy.

The program provides two instruments to Startups:

  • A financial instrument (subsidy) aimed to develop the first version of the product, the ‘proof of concept’T.
  • A financial instrument (subsidy) bridge to support Startups in « seed stage » to get prepared for greater fundraising.

And two instruments for Startups Support Organizations (SS0):

  • Subsidy for the launch of new support programs for Startups (Incubator; accelerator)
  • Subsidy allocated for the performance achieved by SSOs estimated after one year.

 

23/03/2021