{"id":561434,"date":"2021-04-07T03:55:52","date_gmt":"2021-04-07T03:55:52","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/07\/algebra-ventures-doubles-down-on-egypt-with-usd-90-mn-fund\/"},"modified":"2021-04-07T03:55:52","modified_gmt":"2021-04-07T03:55:52","slug":"algebra-ventures-doubles-down-on-egypt-with-usd-90-mn-fund","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/07\/algebra-ventures-doubles-down-on-egypt-with-usd-90-mn-fund\/","title":{"rendered":"Algebra Ventures doubles down on Egypt with USD 90 mn fund"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-04\"><\/a> <strong>Algebra launches USD 90 mn tech fund:<\/strong> Algebra Ventures has launched a second tech fund that will invest USD 90 mn into companies based in Egypt and the Middle East and Africa region, the VC outfit announced in a <a href=\"https:\/\/ent.news\/2021\/4\/AV-Launches-Fund-II.docx.pdf\">press release (pdf)<\/a> yesterday. The company is \u201cdoubling down\u201d on its home market and will focus its investments primarily on Egypt-based tech firms that are \u201ctransforming industries,\u201d it said.<\/p>\n<p><strong>First close coming next quarter?<\/strong> Algebra is targeting a first close in 3Q2021, but doesn\u2019t have a set timeline for when it will begin drawing on the fund, Managing Partner Karim Hussein told us.<\/p>\n<p><strong>Algebra is tight-lipped on potential limited partners.<\/strong> The company\u2019s <a href=\"https:\/\/enterprise.press\/stories\/2016\/12\/15\/algebra-venture-completes-first-closing-of-venture-capital-fund\/\">first<\/a><a href=\"https:\/\/enterprise.press\/stories\/2016\/12\/15\/algebra-venture-completes-first-closing-of-venture-capital-fund\/\">USD 54 mn<\/a><a href=\"https:\/\/enterprise.press\/stories\/2016\/12\/15\/algebra-venture-completes-first-closing-of-venture-capital-fund\/\">fund<\/a> received backing from a who\u2019s who of international LPs including Egyptian American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development, the International Finance Corporation, Cisco and family offices.<\/p>\n<p><strong>Egypt + \u201cbottom of the pyramid\u201d businesses in focus:<\/strong> The fund will focus on investing in primarily Egyptian fintech, agritech, logistics and healthcare startups, but will also look at startups in the wider Middle East and Africa region. It plans to increasingly turn its focus to businesses that cater to lower and middle-income segments by bringing \u201cexcellent services at a low cost,\u201d and is also looking at businesses that can evolve and have the potential for cross-border expansion to similar markets, particularly emerging markets. \u201cWe already have within our portfolio of businesses that are active in Sudan, Ethiopia, Tanzania, Kenya, and other countries, so we\u2019ll continue looking at similar stories,\u201d Hussein told us.<\/p>\n<p><strong>The ticket size for investments will range from anywhere between USD 500k to USD 3 mn<\/strong>, depending on the stage of the startup, Hussein says.<\/p>\n<p><strong>And this could increase in the future:<\/strong> \u201cWith the high pace of growth we\u2019re seeing with many of our startups, I\u2019m expecting the ticket size to increase a bit over the coming years,\u201d he said.<\/p>\n<p><strong>The story so far:<\/strong> Algebra has supported some 21 startups over the past four years through its inaugural USD 54 mn fund, with the VC firm\u2019s six most established companies now valued at more than USD 350 mn.<\/p>\n<p><strong>It\u2019s never been a better time to be a tech startup:<\/strong> Egyptian tech startups have been <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/045187c7-4cf0-434f-a374-b7a48e237207\">having their day in the sun this past year<\/a>, with much of the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0c3b99bc-dc50-48af-9f1b-d9ffbbc8bc71\">USD 100 mn raised by startups<\/a> during covid-19 going to fintech and e-commerce ventures. The tech transformation in the Egyptian economy and the government\u2019s financial inclusion drive (including digitalizing the tax filing system and other major government services) coupled with initiatives from the Central Bank of Egypt such as financing commercial banks\u2019 purchase and distribution of PoS machines all bode well for tech-enabled businesses, Hussein told Enterprise. \u201cWe see encouraging signs from the digitization of the economy that there will be stronger infrastructure for startups to rely on going forward.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Algebra launches USD 90 mn tech fund: Algebra Ventures has launched a second tech fund that will invest USD 90 mn into companies based in Egypt and the Middle East and Africa region, the VC outfit announced in a press release (pdf) yesterday. The company is \u201cdoubling down\u201d on its home market and will focus [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7272],"tags":[1184,398,72,183,7115,125,123,200],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-561434","post","type-post","status-publish","format-standard","hentry","category-investment-watch","tag-agritech","tag-algebra-ventures","tag-enterpriseam","tag-fintech","tag-healthcare","tag-investment-watch","tag-startups","tag-venture-capital","wpautop","entry"],"acf":{"mongo_id":"0b05a266-cfd0-4843-a495-2434a6187cd1","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[561425],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Algebra Ventures doubles down on Egypt with USD 90 mn fund - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/04\/07\/algebra-ventures-doubles-down-on-egypt-with-usd-90-mn-fund\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Algebra Ventures doubles down on Egypt with USD 90 mn fund\" \/>\n<meta property=\"og:description\" content=\"Algebra launches USD 90 mn tech fund: Algebra Ventures has launched a second tech fund that will invest USD 90 mn into companies based in Egypt and the Middle East and Africa region, the VC outfit announced in a press release (pdf) yesterday. 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The respected Egyptian venture capital firm is targeting a USD 60 mn first close for its latest fund, which was initially targeted for\u2026","rel":"","context":"In &quot;Investment Watch&quot;","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/318.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":565825,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/06\/algebra-to-raise-usd-50-mn-in-first-close-of-second-fund\/","url_meta":{"origin":561434,"position":1},"title":"Algebra to raise USD 50 mn in first close of second fund","author":"enterpriseam admin","date":"6 May 2021","format":false,"excerpt":"Algebra Ventures is looking to raise USD 50 mn in 3Q2021 for the first close of its recently announced USD 90 mn tech fund, managing partner Tarek Assaad told Al Mal. 80% of it will be invested in Egypt, with a focus on fintech, agritech, logistics and healthcare. The remaining\u2026","rel":"","context":"In &quot;SPEED ROUND: INVESTMENT WATCH&quot;","block_context":{"text":"SPEED ROUND: INVESTMENT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":545754,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/11\/algebra-lands-usd-15-mn-from-ifc-for-new-fund\/","url_meta":{"origin":561434,"position":2},"title":"Algebra lands USD 15 mn from IFC for new fund","author":"enterpriseam admin","date":"11 April 2022","format":false,"excerpt":"The IFC has committed USD 15 mn to Algebra\u2019s second tech fund: The International Finance Corporation (IFC) has confirmed that it will pour USD 15 mn into Algebra Ventures\u2019 USD 90 mn second tech fund, it said in a statement. The investment was approved by the international lender\u2019s board in\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/4\/198.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":547992,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/21\/fmo-commits-usd-10-mln-to-algebras-second-tech-fund\/","url_meta":{"origin":561434,"position":3},"title":"FMO commits USD 10 mln to Algebra\u2019s second tech fund","author":"enterpriseam admin","date":"21 July 2022","format":false,"excerpt":"Dutch development bank FMO has pledged USD 10 mn to Algebra Ventures\u2019 second tech fund, the bank and our friends at Algebra said in separate statements (here and here, pdf). The money is coming from FMO\u2019s EUR 200 mn investment program, which is co-financed by the Dutch foreign ministry and\u2026","rel":"","context":"In &quot;Investment Watch&quot;","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/7\/222.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":549911,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/05\/algebra-ventures-nets-usd-100-mn-first-close-on-second-fund\/","url_meta":{"origin":561434,"position":4},"title":"Algebra Ventures nets USD 100 mn first close on second fund","author":"enterpriseam admin","date":"5 October 2022","format":false,"excerpt":"Venture capital firm Algebra Ventures\u2019 second fund has reached a USD 100 mn first close, surpassing the USD 90 mn initially targeted, according to a companystatement(pdf). The VC outfit plans to invest USD 15 mn in startups by the end of this year and to reach final close on the\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/10\/138.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":556148,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/13\/ifc-ebrd-to-invest-in-algebras-second-fund\/","url_meta":{"origin":561434,"position":5},"title":"IFC, EBRD to invest in Algebra\u2019s second fund","author":"enterpriseam admin","date":"13 October 2021","format":false,"excerpt":"IFC, EBRD are getting in on first close of Algebra\u2019s second fund: The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) are set to participate in the first close of Algebra Ventures\u2019 USD 90 mn second tech fund, Algebra Ventures Managing Partner Tarek Assaad tells\u2026","rel":"","context":"In &quot;Investment Watch&quot;","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=561434"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561434\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/561425"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=561434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=561434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=561434"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=561434"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=561434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}