Egypt’s biggest VC investor Algebra Ventures back with $90m Fund II raise

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Egypt’s Algebra Ventures has launched a $90m fundraise for its sophomore fund, which it said will also be used to target the wider Middle East and Africa.

Algebra raised its $54m debut fund four years ago, and has since used it to back 21 startups to build Egypt’s largest portfolio of Series A investments.

The firm said Fund I’s six most established companies are valued at more than $350m.

Algebra hopes to hit a first close for Fund II in Q3. The firm said it was doubling down on its home market with the vehicle, while also opportunistically investing in the wider MEA region.

Target industries include fintech, agritech, edutech, logistics and healthcare, with the firm saying it plans to partner with high-potential founders to address specific market gaps in these sectors.

Firm managing partner Karim Hussein said, “Having built a couple of successful technology companies in the US, I see tremendous opportunities for tech transformation in the Egyptian economy and continue to meet exceptional entrepreneurs who address these challenges.

“I am also encouraged by the significant steps taken by the government to facilitate the growth of tech-enabled businesses in Egypt.”

Fellow managing partner Tarek Assaad added, “I am grateful for the LPs of fund I, specifically EAEF, EBRD and IFC who supported us back when there was no venture capital to speak of in Egypt.

“Over the ten years I have worked in venture capital, I have witnessed the evolution of the tech entrepreneurship ecosystem in Egypt which has grown steadily over that period and exponentially in the past three years – vastly exceeding our expectations.

“Growth rates, capital deployed, sophistication of investors, track record of entrepreneurs are all pointing to unparalleled growth moving forward.”

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