Algebra Ventures’ second fund completes its first close at USD 100 million and will make its final close in Q1 2023.
Algebra Ventures, an Egypt-based VC firm, has finalized a USD 100 million first close of its second Egypt-focused VC fund. The original target for the fund was USD 90 million, the final figure of USD 100 million represents Algebra’s largest fund to date.
The new fund will focus on Egypt, however opportunities in East and West Africa will also be studied. The company will initially invest USD 15 million in startups by the end of 2022.
Algebra Ventures: Track record
Algebra was founded in 2016 by Karim Hussein, Tarek Assaad and Ziad Mokhtar. The company has already invested in a range of successful businesses, including Trella, Khazna, Mozare3, Shift EV, elmenus, Halan and Yodawy. The company’s first fund was supported by IFC, EBRD, and EAEF, all of which have invested larger amounts in the second fund, new investors include FMO, BII, MSMEDA, DGGF and other regional companies. The new fund is expected to make a final close at the end of Q1 2023.
Algebra provides expertise and support across multi-stage investments, portfolio support and access to an expanding local and international network of partners and investors. The company aims to support and finance entrepreneurs seeking to build groundbreaking and scalable high growth companies with the aim of fostering sustainable growth across Egypt.
Regional growth and opportunities
Managing Partner Tarek Assaad of their investors and the new fund, “Algebra’s investors were among the first believers in the potential of the Egyptian VC market, having invested in our first fund six years ago when there was almost no venture capital to speak of in Egypt. We’re delighted to continue working with returning investors as well as our new LPs who are supporting Algebra’s local and regional growth plans. We have learned from experience that technological innovation, especially in turbulent times, has tremendous potential to change people’s lives and create significant economic value. This is a great time to build companies.”
General Partner Omar Khashaba added, “Over the last six years, we had the privilege of working with visionary founders who meaningfully improved the lives of hundreds of thousands of Egyptians. As we celebrate the launch of our second fund, we continue to stand firm in our conviction that Egypt is the land of opportunity and its founders the custodians of a long legacy of progress and innovation.”
At the time of writing, Algebra has already invested in four startups as part of its second fund including online used-car retailer Sylndr.
According to recent reports, Egypt is the third largest market for startup investment in the MENA region.