Algebra Ventures, the Egyptian venture capital firm, has announced that it has completed a $100 million first close of its second fund and expects to reach its final close by the end of Q1 2023.
The latest funding is from existing limited partners from the first fund including IFC, EBRD, and EAEF have invested larger tickets in Algebra’s second fund, while FMO, BII, MSMEDA, DGGF, and regional family offices are new investors in Algebra.
The venture capital firm also plans to invest $15 million by the end of this year; that is, within its first year of operation. So far, it has backed four startups, including Sylndr, the online used-car retailer which raised the largest pre-seed investment in Africa this May at $12.6 million. Also, while Algebra’s second fund will explore investment opportunities in East and West Africa, its primary focus remains on Egypt.
Founded in 2016 by managing partners-Tarek Assaad and Karim Hussein, Algebra Ventures invests in technology startups that leverage innovation to transform large markets.
Algebra Ventures looks for entrepreneurial teams that possess vision and insight as well as the execution skills needed to build scalable companies. It focuses on Series A and Series B rounds in Egypt although they do not exclude investments in earlier-stage startups or in other parts of the MENA region. They prefer to meet startups early on and get to know the team as the opportunity is shaping up.
““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,” Tarek Assaad, Managing Partner at Algebra Ventures, said.
“This is a testament to the potential of tech entrepreneurship in Egypt. Even in these uncertain times, there will be funding to back founders who are building transformative companies. The upside is still very significant and successful, well-funded companies will be in a position to become market leaders, even in challenging economic times,” Hussein said on the firm’s efforts to raise its second fund.
“It also highlights the importance of local funds, working closely with entrepreneurs on the ground. We’re four partners, all Egyptians, all living in Cairo; we’ve been investing for a long time, and we understand the local environment. We’ve seen startups succeed and others fail, and many regional and global investors think of us as their local partner in Egypt.”
