Morocco attracts $70 million in startup investment with public-private program
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Morocco’s government partnered with the World Bank in 2016 to launch InnovInvest, a program designed to attract private investment to early-stage businesses.
A decade prior, only 6% of equity investment in Morocco went to these companies, as investors preferred established businesses. InnovInvest used $50 million in public funds to share risk with private investors while allowing them to make investment decisions. The program exceeded its initial goals, mobilizing over $70 million in private capital and establishing four venture capital funds.
This attracted international investors and addressed a previous “valley of death” where startups lacked funding for initial development and seed stages. Banks had previously required collateral entrepreneurs could not provide, and existing funds focused on larger investments. InnovInvest also accredited sixteen incubators and accelerators to better support entrepreneurs, and provided seed grants and loans to nearly 1,000 entrepreneurs. Women-led businesses received 27% of the funding.
The program’s success inspired similar initiatives in eight other countries, and Morocco is now implementing a new Digital Acceleration Programme with $250 million in World Bank financing to continue supporting businesses.
