New Venture Capital Fund, UGFS-VC, Introduces Era Fund I to Money Tunisian Tech Startups in the Realms of Artificial Intelligence, Biotechnology, and Green Technology
Tunisia's Venture Capital Scene: A Growing Role in Regional Hub
Tunisia is making strides in becoming a regional venture capital (VC) hub, with ANAVA-backed funds playing a significant role in this development. ANAVA, a platform assembling a diverse range of VC funds, has committed over €45 million across 10 funds since its launch.
The focus of ANAVA's capital commitments is on seed and growth-stage investments, aiming to help startups scale beyond early-stage traction. Seven of ANAVA's funds are exclusively focused on Tunisia, while the others have regional mandates covering North and Sub-Saharan Africa. Notably, ANAVA has made a €3.5 million commitment to New Era Fund I, managed by UGFS-VC, a Tunis-based asset manager with over 100 startup investments.
New Era Fund I, with a €15 million target, is designed to support Series A technology startups in artificial intelligence, biotechnology, and green technologies. This strategic shift towards more focused, thesis-driven capital deployment in high-growth sectors is a promising development for Tunisia's VC scene.
UGFS-VC, a recognized pioneer in Tunisia's VC space, has announced the first close of New Era Fund I, securing €7 million towards its target. The fund's substantial size within the Tunisian and regional context is particularly significant for startups navigating the post-seed financing gap.
However, despite these efforts, venture capital funding for early-stage technology startups in Tunisia remains limited and challenging. The Tunisian startup ecosystem faces hurdles such as administrative complexity, slow and opaque access to funding, and regulatory uncertainty, which constrain the growth and investment flow, especially at early stages.
These challenges are reflected in the dramatic drop in the number of newly registered startups from 224 in 2020 to only 3 in 2023. Internationalization challenges also persist due to outdated foreign exchange regulations and lack of export/commercial support, further dampening investor and startup confidence.
Programs like the Founder Institute's Tunis Fall 2025 accelerator aim to support very early-stage startups by providing structured mentorship, milestones, and access to a global investor network. Despite these efforts, Tunisia is not prominently featured among the top recipients of VC funding in Africa or MENA.
Flat6Labs, a prominent seed investor in MENA, recently launched a $95 million fund to support 160 startups across the region. In comparison, ANAVA has deployed capital into 45 startups across 12 African countries, including Nigeria, Egypt, Kenya, and Senegal.
Despite the challenges, Tunisia's VC scene shows potential and resilience but has not yet reached significant traction in venture funding compared to other African and MENA markets. ANAVA's mission to strengthen Tunisia's startup ecosystem, as demonstrated by its investment in New Era Fund I, is a step in the right direction.
The growing focus of ANAVA's commitments towards seed and growth-stage investments in Technology startups, specifically in sectors like Artificial Intelligence, Biotechnology, and Green Technologies, is reshaping Tunisia's startup ecosystem. Moreover, ventures in Sports and other high-growth sectors might finding a supportive ecosystem within this evolving green tech-centric startup ecosystem in Tunisia, thereby contributing to the development of a diverse startup ecosystem within the region.
