The funding stage that often receives the least attention is frequently the one that matters most. Across Africa, the gap between a founder’s initial idea and securing a first institutional investment remains one of the most significant challenges in the startup ecosystem, with the disparity particularly pronounced at the pre-seed and seed stages in Francophone West Africa.
To address this challenge, Senegal’s Rapid Entrepreneurship Delegation for Women and Youth (DER/FJ) has announced the launch of the Catalyst DER/FJ fund, a $50 million investment vehicle aimed at financing innovative Senegalese startups at the pre-seed and seed stages. The announcement was made by DER/FJ General Delegate Aida Mbodji during VivaTech 2026 in Paris on June 20.
Data from Africa: The Big Deal highlights the scale of the issue. Seed-stage funding currently accounts for only 1.5% of total capital invested across Africa, significantly below the 4% to 6% share typically recorded in the United States. As a result, many startup founders struggle to secure sufficient resources while validating their business models, building teams and developing early-stage products.
Grégoire de Padirac, Chief Executive Officer of Digital Africa under the AFD-Proparco group, recently described seed financing as a cornerstone of African innovation, noting that it is often overshadowed by the large fundraising announcements that typically dominate discussions around the continent’s startup ecosystem.
Senegal’s strategy seeks to use public capital to attract private investment, create a leverage effect and improve the competitiveness of the country’s startup ecosystem. Following the launch of the fund, five Senegalese startups — Andakia, Baamtu, SenITI, FAJMA and Absar — presented their businesses to international investors and strategic partners in Paris, showcasing the type of ventures the Catalyst DER/FJ fund aims to support.
For stakeholders observing the venture capital landscape in Francophone West Africa, the initiative represents a significant policy signal. Early-stage institutional funding remains scarce in the region, and the creation of a $50 million public fund dedicated to pre-seed and seed investments reflects a deliberate effort to strengthen a segment of the investment ecosystem that has historically been underserved by private capital.
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