You’ve got a brilliant idea, your MVP is done, and your PoC is achieved… you’re ready to move to the next step with your startup in Morocco—fantastic! But now comes the big question: Where’s the money?
Since King Mohammed VI started shaking things up in 2001, Morocco has been rolling out the red carpet for entrepreneurs like you. But navigating the funding landscape can feel like trying to solve a Rubik’s Cube blindfolded. No worries—we’re here to make it a little less puzzling. The Moroccan startup scene is buzzing, and startups are increasingly tapping into both national and international funding sources to fuel their growth.
We’ll walk you through some of the options and break it down so you can better play the investment game, whether it’s from the government, private investors, or international sources. Each of these plays a unique role in nurturing innovation and driving growth, so let’s dive in!
Hamza Bensouda - 10 mn read
Government Funding – Safety Net
Think of government funding as your startup’s safety net. The Moroccan government has set up several initiatives to give startups like yours a leg up.
Ever heard of the Moroccan Innovation and Development Fund (FID)? If your startup is all about tech and innovation, this fund could be your go-to. Managed by the Ministry of Industry and Trade, the FID offers grants and low-interest loans to startups that are pushing the boundaries of technology. Sure, there’s an application process, and they’ll want to see that your idea is on the cutting edge, but if you’re in the right place at the right time, this could be a game-changer.
Another big player is the Moroccan Fund for the Development of Small and Medium-Sized Enterprises (FNDPME). This fund is like a backstage pass to the world of business if your startup has serious growth potential. It offers financial aid and technical support to businesses across various sectors. All you need is a killer business plan, and you’re good to go. Head to your nearest regional office, and they’ll guide you through the process.
Let’s not forget the National Initiative for Human Development (INDH). If your project is about making a social impact, especially in underserved communities, the INDH is where you should be looking. This program dishes out grants and project financing to initiatives that address social challenges and promote equitable development. Through local governments and community-based organizations, the INDH is making sure that those who need it the most get the support they deserve.
To sum up, to maximize your chances of securing government funding:
- Ensure your startup aligns with national development goals, particularly in technology, innovation, or social impact.
- Focus on crafting a clear and compelling application that demonstrates both your business’s potential and its alignment with the objectives of funds like FID, FNDPME, and others.
- Prepare your pitch and make sure to emphasize not only how your business will grow thanks to their funding but also how it will enrich the Moroccan landscape of entrepreneurs.
Private Funding – Where the Big Players Play
Now, if you’re ready to swim with the sharks (in a good way!), private funding is where the actions at. Venture capital firms like Outlierz Ventures and Riyad Capital are always on the lookout for startups with the potential to make a big splash. But here’s the thing—you’ll need to bring your A-game. Pitch your heart out and show them why your startup is the next big thing. If you’ve got a scalable business model, these firms could provide not just capital but also strategic support and mentoring. And believe me, having an experienced VC on your side can be a game-changer.
Let’s talk about business angels—because who wouldn’t want an angel on their side? Moroccan Angels, for example, is like a team of high-net-worth individuals who are just itching to invest in fresh, innovative ideas. Founded in 2014, this network hosts regular pitch sessions where startups get to present their business plans to potential investors. It’s a win-win—you get the funding and the chance to receive some invaluable feedback from seasoned entrepreneurs.
Then there’s Casablanca Angels, which has been making waves in sectors like tech, healthcare, and agritech since its inception. They’re pretty selective, but if you get their backing, you’re not just getting money—you’re getting a whole lot of expertise to help you grow. Their rigorous screening process ensures that only the most promising startups make the cut, and their involvement often includes active participation in your growth strategy.
And since VC is a critical funding source for Moroccan startups aiming to scale rapidly and
innovate. Here’s a detailed look at some of the top VC firms in Morocco, providing a snapshot
of their focus areas and how they can support your startup:
- Outlierz Ventures: Specializes in early-stage investments in tech startups. Known for providing not only funding but also strategic support and mentorship to help startups scale.
- Riyad Capital: Offers equity investments in growth-stage companies across various sectors, including fintech and healthcare. Focuses on high-potential startups with scalable business models.
- AfricInvest: A leading pan-African VC firm with a presence in Morocco, investing in SMEs and startups with significant growth potential.
- Bidaya Investment: Focuses on startups in the early stages, particularly those in technology and digital sectors. Provides both capital and hands-on support.
- Keesing Media Group: Invests in startups related to media and digital content, helping them scale and expand their reach.
- Sahm Group: Invests in early-stage startups with innovative business models, offering financial support and strategic guidance.
- Mediterrania Capital Partners: Targets growth-stage companies in various sectors, including agribusiness and healthcare, with a focus on scaling operations.
- CFCIM Capital: Invests in startups with high growth potential, providing both capital and strategic advice to support scaling efforts.
- Maroc Numeric Fund: Focuses on technology startups, providing early-stage funding and support to help tech companies grow and innovate.
- Kalys Ventures: committed to supporting tenacious entrepreneurs who aim to contribute to Africa’s development by investing between $50K and $200K, mainly in healthcare, education, mobility and logistics,…
Or to sum up easily:
| VC Firm | Early Stage | Middle Stage | High Scale Growth |
|---|---|---|---|
| Outlierz Ventures | ✔ | ||
| Riyad Capital | ✔ | ||
| AfricInvest | ✔ | ✔ | |
| Bidaya Investment | ✔ | ||
| Keesing Media Group | ✔ | ||
| Sahm Group | ✔ | ||
| Mediterrania Capital Partners | ✔ | ||
| CFCIM Capital | ✔ | ✔ | |
| Maroc Numeric Fund | ✔ | ✔ | |
| Kalys Ventures | ✔ | ✔ |
And we can’t forget individual angel investors who are making a difference on their own. Take Mounir Bensalah, for example—a well-known Moroccan entrepreneur and investor who has been instrumental in supporting tech startups. His investments often focus on innovative tech solutions and companies with high-growth potential, which is right in line with the broader trend among Moroccan business angels.
Corporate investment is another exciting avenue. Major corporations like OCP Group and Ciments du Maroc are keen on investing in startups that align with their strategic interests.
These investments usually come in the form of equity partnerships, which means you not only get the funding but also the chance to collaborate with established industry giants. This kind of strategic alliance can open doors you never even knew existed, giving you access to additional resources and markets.
Therefore, when seeking private funding:
- Identify and connect with angel networks
- Focus on sectors that align with investor interests.
- Tailor your pitch to demonstrate not only financial potential but also how your startup fits within the broader strategic goals of your investors.
- Build relationships with corporate investors so that they can also provide additional resources beyond just capital.
International Funding – Think Global
Feeling ambitious? Why not go international? There’s a whole world of funding out there if you know where to look.
The World Bank, the European Union, and other big names are offering grants and loans for projects that align with their goals. Startups with a global or regional focus can really benefit from these opportunities. To tap into these funds, keep an eye out for specific programs and calls for proposals—they’re designed to support initiatives with significant developmental impact.
Bilateral and multilateral funds from institutions like the African Development Bank are also in the mix. These funds are typically earmarked for projects with international relevance or cross-border benefits, offering grants, loans, and even technical assistance. If your startup is aiming for the stars (or at least across borders), these could be the golden ticket.
And let’s not forget international competitions and grants—they’re like the Olympics for startups. Competitions like the Hult Prize and the Orange Social Venture Prize not only come with cash prizes but also offer mentoring and massive visibility. Plus, the networking opportunities you get from participating are absolutely priceless. Winning one of these competitions can put your startup on the global map, opening doors to new markets and partnerships. To sum up:
- Focus on building a compelling case for how your startup can address global or regional challenges, and actively participate in international competitions to gain both funding and exposure.
- Explore international funding by targeting grants and competitions that align with your startup’s mission and market.
The Main Challenge – Reality Check
Alright, here’s the truth bomb. Securing funding in Morocco isn’t always a walk in the park.
Sure, there’s a lot of money out there, but getting your hands on it can be tough. Investors can be a bit skittish about throwing cash at early-stage startups—especially since the funding available in Morocco is still playing catch-up compared to places like Egypt or South Africa.
Plus, let’s be real: the bureaucracy can feel like quicksand, and getting through all the red tape might test your patience.
There’s also the challenge of finding the right talent. Entrepreneurship isn’t exactly the go-to career path for a lot of Moroccan families, and the education system doesn’t do much to change that mindset. The unknown, the uncertainty and the passion for change you’re about to go (or going) through isn’t forged in most of the Moroccan households where classic careers such as medicine, care, engineering or real estate are preferred by parents and encouraged by the overall educational system. We need more programs and training to get young people excited about starting their own businesses.
Networking? It’s still a work in progress. Opportunities to connect with mentors and industry experts are limited, which can make it harder to get the guidance you need. And then there’s the cultural factor. Starting a business isn’t always seen as a safe or desirable path, and some families might even discourage it. Regulations can be a headache, too. Heavy taxes and complex procedures can feel like a major roadblock when you’re just trying to get your business off the ground.
On top of that, the ICT infrastructure isn’t quite where it needs to be—reliable internet access is still an issue in some areas, which can complicate things when you’re trying to reach customers or operate efficiently.
But here’s the silver lining: these challenges aren’t roadblocks—they’re hurdles. And with the right strategies, you can clear them and come out stronger on the other side. So, let’s get out there and turn your startup dream into reality and get the green!
Discover the State of Funding in MENA – 2019 to 2023 : The white paper of this month is taking you through the ups and downs of MENA’s startup funding over the last 5 years. If you’re a startup founder, an investor or an ecosystem builder, this is your chance to learn from the past, spot the trends, and write your own success story.
Don’t miss out on knowing the history that could shape our future!
