After having secured MAD100 million (€9 million) to 17 start-ups over the past 8 years, Morocco Numeric Fund has doubled the amount for its second operation.
After completing its first investment phase, by injecting MAD100 million (€9 million) into 17 start-ups,Morocco Numeric Fund (MNF) has just launched its second fund. This time, MITC Capital, the MNF’s management company, raised MAD200 million in its roundtable. One-third of the shareholding is held by the Caisse Centrale de Garantie (CCG), which manages the Innov Invest fund on behalf of the State, and two thirds by private shareholders: Attijariwafa Bank, BMCE, Banque Populaire and MITC, on equal shares.
Created on September 2010, the fund has for a very long time been the only channel available for young project leaders, whose approaches to banks are difficult. The 17 companies that shared the first envelope are active in different sectors: software publishing, e-commerce, online services, video games, electronic media and energy efficiency. Among them, we can mention the Livremoi virtual library, the sports information site Elbotola.com or Ma-navette.com, which provides transport for company personnel.
An average ticket of MAD3.5 million
“MNF I’s balance sheet is generally positive. The failure rate remains under control, and well below international standards in venture capital. The successful start-ups are all leaders in their fields today,” says Dounia Boumehdi, Managing Director of MITC Capital, without giving any further details on this failure rate.
Like any venture capital fund, MNF takes minority stakes in the capital of its foals, with an average ticket of MAD3.5 million. This amount can go beyond that when the company is more attractive and promises an attractive return.
MNF executives also review the CVs of entrepreneurs and management teams before deciding to invest. “This is the most time consuming and stressful step for us. You never know what might change their minds, but we were able to talk about it afterward,” says a former candidate whose file was rejected.