Egyptian VC firm Algebra Ventures is planning on making its first investments in East and West Africa once it raises its second fund, which has a target size of US$90 million.
Disrupt Africa reported last month Algebra Ventures had announced the launch of its US$90 million second fund, which is targeting a first closing in Q3 of 2021 and aims to double down on the success of its first fund.
Four years into its first US$54 million fund, the firm has invested in 21 startups, including Trella, elmenus, GoodsMart, and Halan, creating over 20,000 direct and indirect jobs. Its six most established companies are valued at over US$350 million.
Co-managing partner Karim Hussein told Disrupt Africa the new fund will see Algebra broaden its scope somewhat, with the firm remaining focused on Egypt but also looking at making some investments in additional African countries as well as the Middle East.
“We will continue to invest in exceptional entrepreneurs and build up our talent network to support our growing portfolio. We are doubling down on Egypt and will explore new markets in East and West Africa,” he said.
“The continent has a young and growing population and many challenges. With those challenges come significant opportunities to build exciting new businesses that address these challenges. We believe the opportunities are endless and the population is young, driven, and tech savvy, making the continent a perfect environment for highly successful tech endeavours.”
Sector-agnostic, Algebra Ventures does however look for businesses where technology is a central component, which enables efficient scaling of the product or service.
“We also look for businesses that are able to create a competitive advantage through the technology solutions they provide,” said Hussein.
Algebra Ventures works closely with its portfolio companies, providing capital as well as assisting with strategy and operations. It has also supported the hiring of a number of C-level executives for its portfolio companies and will continue to invest in growing its talent pool, ensuring that the most qualified and ambitious individuals continue to join Algebra’s portfolio.
The new fund will pursue opportunities in fintech, agri-tech, ed-tech, logistics and healthcare by partnering with high-potential founders to address specific market gaps in these sectors.