- Morocco launches USD 269M incentive mechanism to support startups, combining public and private capital to strengthen the venture ecosystem.
- Nine fund management companies selected, covering fintech, agri-tech, ed-tech, digital health, climate tech, across pre-seed to Series A stages.
- Tamwilcom provides risk coverage and direct investment, attracting investors while bridging funding gaps in Morocco’s startup ecosystem.
Morocco
Morocco’s Ministry of Digital Transition and Public Administration Reform, the Mohammed VI Investment Fund, Caisse de Dépôt et de Gestion (CDG) and Tamwilcom, all signed an agreement to launch an incentive mechanism to support investment funds targeting startups.
This new financial vehicle intends to inject around USD 269 million (MAD 2.5B) into Morocco’s startup ecosystem. Thus, making it one of the nation’s most significant public interventions in venture capital. Additionally, this will be funded jointly by the Ministry via Tamwilcom, the Mohammed VI Investment Fund, and the CDG. Furthermore, the fund will also see participation from local and foreign investors.
Startup Ecosystem
The partnership will implement risk coverage through Tamwilcom who will provide insurance against initial losses to investors. Furthermore, the intention of this is to attract investors in a risk-averse macroeconomic climate. Additionally, in specific cases Tamwilcom will deploy capital directly on behalf of the Ministry to bridge funding gaps.
The initiative runs on a fund of funds mechanism led by Tawilcom. This vehicle will deploy capital into nine selected management companies. This will be done through a call for expressions of interest by the Mohammed VI Investment Fund.
These companies cover a variety of sectors including fintech, agri-tech, ed-tech, digital health, climate tech, and others. Moreover, the selection has been structured across three main categories covering the various stages of startup development. This includes three pre-seed funds, two seed-stage funds, and four Series A and later-stage funds.
Bottom line: This initiative ultimately aims to foster innovation through access to funding across Morocco’s startup ecosystem.
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