Rabat: Launch of the Catalytic Startup Fund Support Mechanism

Signed by the Minister Delegate for Digital Transition and Administrative Reform, Amal El Fallah Seghrouchni, FM6I Director General Nezha Hayat, CDG Director General Khalid Safir, and Tamwilcom Director General Said Jabrani, the agreement aligns with the High Royal Guidelines aimed at promoting investment, removing obstacles hindering its effective recovery, and implementing the Morocco Digital 2030 strategy.

This partnership formalizes the implementation by Tamwilcom of the ministry’s support mechanism for startup funds selected under the FM6I call for expressions of interest. These venture capital funds will be eligible for first-loss risk coverage or direct investment by Tamwilcom on behalf of the ministry, under conditions aligned with the highest international Venture Capital standards.

Speaking at the signing ceremony, Ms. El Fallah Seghrouchni stressed that the creation of the catalytic startup fund responds to a real market need, noting that although Morocco is witnessing increased seed rounds and growing international investor interest, the ecosystem remains underfunded relative to its potential.

“The ministry is committing 400 million dirhams. It is a concrete instrument that limits risk and eases access to capital. It allows investors to take measured risks and helps startups cross critical growth stages,” she said.

She added that the mechanism marks a decisive step in structuring the venture capital industry in Morocco, shifting from isolated initiatives to an integrated and sustainable system.

“We aim to position Morocco as an African innovation hub capable of attracting talent and strategic partnerships. Through flagship initiatives like the Arab-African hub D4SD and the Jazari institutes, we will get there. And above all, we want to achieve the objectives of the Morocco Digital 2030 strategy, including the emergence of ten scale-ups and two unicorns.”

For her part, Ms. Hayat stated that the initiative embodies a national ambition to make investment in innovation a sovereign choice and a driver of sustainable competitiveness.

“By covering first losses, we create the conditions for national and international funds to dare to invest earlier, more strongly and more frequently in the growth paths of Moroccan startups,” she explained.

She emphasized that this mechanism is not “a temporary reform, but a structuring act” laying the foundation for a deeper, more credible and competitive market.

Mr. Safir noted that CDG’s commitment falls within the institution’s new “open architecture” strategy, which consists of investing increasingly through funds managed by national and international private operators in order to increase investment impact and develop a world-class Moroccan investment capital ecosystem.

He praised this exemplary collaboration between public institutions, describing it as one of the key factors behind the mechanism’s success.

For him, the agreement introduces a major national innovation by establishing a catalytic tranche aligned with international best practices, significantly improving the attractiveness of venture capital investment.

Mr. Jabrani expressed gratitude for the confidence placed in Tamwilcom by entrusting it with the design and operationalization of the catalytic startup fund.

“Tamwilcom is putting its expertise in innovation financing and risk coverage mechanisms at the service of the ministry to help strengthen the momentum recorded within the startup ecosystem,” he said.

These seed and venture capital funds will benefit, through this catalytic fund managed by Tamwilcom, from a coverage mechanism for investors or from investment on conditions aligned with best international standards.

The mechanism aims to channel more capital toward this asset class by significantly reducing investor risk. It represents a first-of-its-kind initiative in supporting early-stage and growth investment for Moroccan startups.

A first list of nine startup fund management companies has been shortlisted following a call for expressions of interest that generated strong interest, with 47 applications received, including 12 local, 33 international and 2 mixed consortiums. These initial funds plan to invest nearly 2.5 billion dirhams in Moroccan startups, including contributions from the ministry via Tamwilcom, FM6I, CDG and third-party investors to be mobilized by the selected fund managers.

The first group includes three “pre-seed” funds, two “seed” funds and four “Series A and beyond” funds, ensuring a full continuum of financing for startups at key development stages.

The selected firms cover a wide range of sectors, including fintech, agritech, edtech, healthtech, climatetech and others. Their profiles are diverse and complementary, including three national managers, five international and one mixed consortium.

This initiative confirms the potential of the venture capital industry in Morocco and the commitment of institutional partners to contribute to positioning the Kingdom as an international innovation hub, supported by financing tools adapted to the new dynamics shaping the national entrepreneurial landscape.

Editorial team/le7tv