DFS Lab, a fintech accelerator, has partnered with the Stellar Development Foundation to launch a fund that will focus on African start-ups aiming to transform the digital payments landscape.
The DFS Lab Stellar Africa Fund I will target high-potential builders and teams in Africa that are building on the Stellar network. The Fund will offer initial investments of up to $100,000, with further follow-on investments possible as teams grow, according to a statement seen by Techloy.
The portfolio founders selected for investment will have access to DFS Lab's team and community, as well as mentors from the Stellar Development Foundation and Stellar ecosystem companies.
According to Joseph Benson, Partner at DFS Lab, the potential that decentralised solutions offer in Africa is undeniable, as the continent's finance sector is oftentimes bogged down by inefficiency, opacity, and lack of interoperability.
Some approaches will falter as hype gives way to reality, but those who break through and find traction may find themselves building foundational platforms that can underpin the future of digital transactions on the continent.
The new fund builds on previous blockchain bootcamp collaborations between DFS Lab and the Stellar Development Foundation, which supported developers and startups building on the open-source Stellar network in Africa, with wide-ranging product examples.
Stephen Deng, Partner at DFS Lab, summarised that the fund is open to various use cases, but will be particularly interested in those solving for fiat-crypto ramps and those building cross-border payments for the continent.