Egypt’s leading tech venture funding firm, Algebra Ventures has raised $100M in the first close of its 2nd funding which is dedicated to startups across Egypt. However the targeted value of fundraising was $90M, but the actual value raised exceeded the targeted value.
The total raised amount of Algebra has come to a total of $140M after this round’s funding.
This funding round was endorsed by several established investors, which includes the existing as well as fresh venture capitalists. So existing investors include, EBRD(European Bank for Reconstruction and Development), EAEF(Egyptian American Enterprise Fund), and IFC(International Finance Corporation), which invested larger than previous and the fresh investors are BII, FMO, DGGF, MSMEDA, and some of the regional family investors.
Algebra Ventures, the Hope of Egyptian Startups
Algebra Ventures, situated in Egypt is a venture capital firm that finances early-stage startups and backs them. It was established by Karim Hussein, Tarek Assaad, and Ziad Mokhtar in 2015. Its headquarter is present in Cairo, Egypt.
They believe in partnering with those founders who are working for the transformation of industries, addressing time-hallowed problems whose solution can only be provided by technology, and directly making an impact on improving the lives of millions.
They engage with the toughest investors who have considerable experience in enterprise management which helps to bring out the correct value to the startups and also connects the portfolio of their company with other industry partners to support the development and future exit.
Contemplation behind the Fundraising
With the capital, Algebra Ventures collected in this funding round, they aim to use it in the establishment and further growth of their local enterprises, that is inside the Egyptian country. Their main focus would be on pursuing the maximum investment opportunities for the companies situated in Egypt. They also said that they will work on filling the gap between specific markets in these sectors. Although their focus will also cover East and West Africa, the chief unit of focus remains the entire Egypt.
The partners of Algebra said that they are excited to invest $15 million in early firms by the end of 2022, which includes those startups that are in the operation of their 1st year. They also revealed that they are anticipating the final closing by Q1 2023.
The co-founder of Algebra Ventures, Karim Hussein said in an email, “By partnering with the high potential establishments, our second fund will pursue the possibilities in various sectors, which helps in addressing the gap in these sectors. Until now, we hadn’t invested in Sub-Saharan Africa, but resumed building relationships in these markets.”
The Managing Partner of Algebra Ventures, Tarek Assaad said that the potential of the Egyptian VC market was first trusted and credited by the investors of Algebra, having invested in the very first fund, six years ago, when in the entire Egypt, there is no VC to speak of.
He further added that they are highly delighted to connect with them again as an investor and he also thanked the fresh LPs who are standing with Algebra’s aim of supporting the local and regional companies.
“Our experience has taught us that, especially in turbulent times, technological innovation has tremendous potential to change the lives of people and to significantly create and increase economic value. It is the best time to manufacture and fabricate companies,” said Tarek Assaad.
In the past Algebra had backed several phenomenal businesses and category trailblazers including Khanza, Shift EV, Trella, Halan and Yadow, and Mozare3. These are the transformative enterprises with a positive influence.
IFC- International Finance Corporation is a venture capital subsidiary and a private equity firm, which primarily focuses on the developing countries’ private sectors.
It is one of the members of the World Bank Group, committed to the economic development of developing countries, and works in improving the lives of the public by motivating and invigorating the growth of private sectors.
It is the Earliest Investor for Algebra Ventures.
On December 14th, 2016, Algebra Ventures raised $40 million in its 1st venture round funding and the lead investor of that round is also IFC.
Conclusion
Algebra Ventures raised $100M, which exceeds the expected value, which is $90M. The funding was led by a mixture of existing and fresh investors: EBRD, EAEF, IFC, BII, FMO, DGGF, MSMEDA, and regional family investors.
Algebra Ventures aims to develop opportunities for regional and local Egyptian Businesses and to crowd the gap in marketing sectors.
The venture capital plans to raise another $15M by the end of 2022 and to make a final close by the end of Q1 2023. The aims and objectives of Algebra Venture capital are crystal clear and the Egyptian circle will gather their main focus.
FAQs
Ans. $100M
Ans. EBRD, EAEF, IFC, BII, FMO, DGGF, and MSMEDA along with some regional family investors.
Ans. Egyptian companies along with some of the East and West African companies.
Ans. Karim Hussein, Tarek Assaad and Ziad Mokhtar.
Ans. $140M.
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