Recently-launched VC firm Algebra Ventures has announced it has raised US$40 million to invest in Egyptian tech startups, which it claims makes it the largest fund in the country to date.
Algebra Ventures, which says it will invest in up to 25 Egyptian tech startups and is hoping for a final close of US$50 million, has secured backing from Cisco Investments, the American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC).
“We’re here to help the next generation of entrepreneurs build market-leading companies. In the midst of all the challenges our economy is currently battling with, the belief that technology and innovation are critical to progress is our main driving force,” said Algebra Ventures managing partner Tarek Assaad.
“There has been a dry-up in funding recently, and this new investment comes at a very important time to revitalise growth in the sector. The new Algebra Ventures fund will provide much-needed capital to allow startups to accelerate their growth and build lasting value.”
IFC executive vice president Philippe Le Houérou said startups were a potentially major source of jobs and innovation, yet many struggle to obtain the financing necessary for success.
“By increasing access to capital, we can help these companies grow and create jobs. This investment shows how IFC, our development partners, and other private investors can come together to unlock the transformative potential of the private sector,” he said.