Tunisian VC firm 216 Capital launched a six-month accelerator with Silicon Valley’s Plug and Play that will deploy €1 million across 20 local startups at €50,000 each, marking one of the largest structured early-stage programs in North Africa.
The 216 Capital Venture Accelerator, backed by Smart Capital and the ANAVA fund of funds, aims to address a persistent market failure: Tunisian startups struggle to scale beyond national borders despite government support through the 2018 Startup Act.
“By joining forces with Plug and Play, we are equipping local entrepreneurs with the tools they need to structure their businesses, attract capital, and access international markets,” said Dhekra Khelifi, Partner at 216 Capital.
The partnership represents Plug and Play’s entry into Tunisia’s startup ecosystem, following successful accelerator programs across Africa including Egypt, Morocco, and South Africa. Yves Cabanac, Managing Director for France, Benelux, and Africa at Plug and Play, positioned Tunisia as an emerging innovation bridge between Africa, the Middle East, and Europe.
“This program aims to accelerate that momentum by identifying high-potential ventures, aligning them with global standards, and channeling new flows of capital into the country,” Cabanac said.
The €50,000 initial investment is structured as pre-seed funding, with high-performing cohort members eligible for follow-on rounds from associated funds. The program provides access to Plug and Play’s corporate network, which includes over 500 corporations across sectors ranging from fintech to logistics.
Tunisia’s 2018 Startup Act introduced tax incentives, regulatory support, and funding mechanisms that helped create a domestic startup ecosystem. However, fragmented regional markets and limited access to international capital have prevented most companies from achieving scale beyond Tunisia’s 12 million population.
The accelerator’s value proposition centers on internationalization readiness. Participating startups receive mentorship from international investors and VCs focused on market expansion strategy, financial modeling for cross-border operations, and compliance frameworks for multi-market deployment.
For VCs evaluating North African deal flow, the program signals institutional validation of Tunisia as a sourcing market. Smart Capital and ANAVA’s backing indicates Tunisian institutional investors view the accelerator as a de-risking mechanism that improves investment readiness for downstream Series A capital.
The €50,000 check size positions 216 Capital between grant-focused programs (typically €10,000-€25,000) and traditional pre-seed rounds (€100,000-€500,000). This middle tier targets startups that have validated product-market fit domestically but lack the operational sophistication to attract Pan-African or European investors.
Competing accelerator programs in North Africa include Flat6Labs (Egypt, Tunisia, UAE) and Seedstars (pan-emerging markets). However, Plug and Play’s corporate network differentiates the offering—startups gain potential pilot opportunities with multinationals rather than purely financial capital and mentorship.
The six-month timeline suggests an intensive program structure focused on rapid iteration. For context, Y Combinator operates on a three-month cycle while Techstars runs four months. The extended timeline may reflect the additional complexity of preparing startups for cross-border operations versus pure product development.
The commitment to follow-on funding for high performers creates a natural selection mechanism. Startups demonstrating traction during the accelerator effectively receive warm introductions to 216 Capital’s LP network and Plug and Play’s affiliated funds.
This structure aligns incentives: the accelerator becomes a dealflow pipeline rather than a standalone program. For LPs in 216 Capital’s funds, the accelerator provides early visibility into Tunisian startups before they reach competitive Series A processes.
Tunisia produced several exits in recent years, including Expensya’s acquisition by Medius and Instadeep’s $100 million sale to BioNTech, demonstrating that cross-border scale is achievable. The question is whether structured accelerator support can increase the frequency of such outcomes beyond outlier cases.
The program launches as North African startup funding declined 43% year-over-year in 2024 according to regional data, making institutional backing from established players like Smart Capital and international validation from Plug and Play increasingly important for startup survival and growth trajectories.
