Tunisia's State Fund of Funds Takes Its Pitch to the Interior

Tunisia's state-backed startup financing machine is heading inland, chasing founders in cities that captured almost none of the country's venture money.

The "Innovative Startups and SMEs" project — financed by the World Bank and implemented by the Caisse des Dépôts et Consignations (CDC) in partnership with Smart Capital — will launch the second edition of its regional roadshow in late September, with stops in Le Kef, Monastir, Gafsa and Zarzis through 23 October. The first edition, held earlier in 2025, visited Bizerte, Kairouan, Sfax and Gabès.

The timing reflects hard numbers. A study by the Tunisian Institute for Strategic Studies (ITES) found that 67 per cent of bank branches sit along the coast, concentrated in Greater Tunis and the Centre-East, leaving interior regions in what the institute calls a "financial desert". Startups captured just 1.8 per cent of total invested capital in 2024. As much as 80.5 per cent of fundraising is centralised in Greater Tunis.

Two instruments, one roadshow

At each stop, organisers will present two financing mechanisms. ANAVA, a fund of funds, channels capital indirectly through child funds that invest in startups in Tunisia and across Africa and the Middle East. InnovaTech operates directly, targeting innovative small and medium-sized enterprises. The CDC describes the project as pursuing two components: indirect financing via ANAVA and direct financing via InnovaTech.

ANAVA holds a distinction beyond Tunisia's borders. It is the first fund of funds in Tunisia and on the African continent denominated in euros. It targets €100mn and has already secured a first closing of €60mn — €40mn subscribed by the CDC through a World Bank loan and €20mn from German development bank KfW. Smart Capital, a company approved by the Financial Market Council and mandated by the Tunisian state to run the national Startup Tunisia programme, manages the fund.

To date, ANAVA has committed €45mn across ten venture capital funds, against a target of at least 13. Seven of those funds invest exclusively in Tunisia; three operate as pan-African vehicles. The fund keeps a sector- and stage-agnostic approach, designed to diversify risk while maximising performance at scale.

The child funds

Several vehicles are already deploying ANAVA's capital. Tunis-based 216 Capital Ventures, founded in 2021 by Dhekra Khelifi — the first female general partner at a Tunisian venture capital firm — focuses on early-stage technology startups and has invested in companies including eSteps, Proxalys and Logidoo.

MEDIN Fund Management runs the TITAN SEED FUND I, a deep tech vehicle backing early-stage startups using artificial intelligence in life sciences, biotech and other sectors. It targets €10mn and is described as the first deep tech-focused fund in North Africa. ANAVA committed €5mn to the fund, which invests in both Tunisian dinars and euros.

Go Big Partners, also Tunisia-based, primarily backs B2B startups addressing global markets. Flat6Labs, among the most active seed investors in the MENA region, launched a $95mn venture fund to support more than 160 startups over five years, writing tickets of $150,000 to $500,000.

Silicon Badia, an international venture firm investing across multiple industries, has backed Egypt's Synapse Analytics and Cartona. Janngo Capital, founded by Senegalese investor Fatoumata Bâ, recently closed a $78mn fund — 20 per cent above its initial target — focused on African tech startups, particularly those led by women. LoftyInc Capital, founded by Nigerian investor Idris Ayodeji Bello, supports "Afropreneurs" in fintech, financial services and software, with notable investments including Flutterwave, Eden Life and Chefaa.

Testing decentralisation

This year's roadshow format has changed. Organisers acknowledge that a uniform presentation of financing mechanisms falls short; the 2025 edition tailors content to the specific economic characteristics of each regional basin. The goal is to connect project holders with investors, regional banks, SICARs (risk capital investment companies), universities, technopoles and local professional organisations.

For regional venture investors and SICARs, the gatherings offer a channel to deal-flow outside the usual circuits. They also serve as a live test of whether ANAVA and InnovaTech can genuinely push investment beyond the coastal zones.

The structural imbalance persists despite ecosystem momentum. CDC Director-General Nejia Gharbi told La Presse de Tunisie in July that the CDC had financed ten investment funds dedicated to startups under ANAVA, with 70 Tunisian startups having benefited from financing through the fund of funds and the various vehicles created within its framework. She added that Tunisian diaspora professionals have set up several management companies and investment funds, with a particular focus on artificial intelligence and advanced technologies.

"There is financing, there is potential; the challenge now is to accelerate," Gharbi said.

The coming months will show whether the roadshow's regional focus shifts where Tunisia's startup capital actually flows — or whether the pull of Tunis proves stronger than the policy intent to decentralise.