Egypt startup funding went dark in March — but one VC says capital is still moving

Although Egypt remains investable, startups with export potential or with USD-denominated earnings are at an advantage Funding for Egyptian startups came to an abrupt wartime halt in March, with only Egyptian-founded, US-based Hamilton Labs clocking in an undisclosed investment, according to data from Launch Africa Base. The sharp slowdown follows a strong start to the year, where Egypt — one of the region’s most active countries for VC investment — saw upwards of USD 100 mn raised across numerous transactions in the first two months of the year.

by enterpriseam adminMENA+ EditionApril 10, 2026

“The March slowdown is primarily a function of LP capital allocation timing, not a fundamental shift in Egypt’s investability,” Foundation Ventures Managing Partner Mazen Nadim tells EnterpriseAM.

Publicly available data may also be misleading, he argues, as “founders and investors are keeping terms private during a volatile macro environment.” That being said, the traditional first-quarter slowdown in activity has been amplified this year by regional geopolitical uncertainty that created “short-term risk aversion among crossover investors” and “Egypt specific FX recalibration as the market digests post-reform valuations,” he adds.

Startups with export potential or USD-denominated earnings are reportedly commanding 20-30% valuation premiums over purely domestic plays, serving as a natural hedge against EGP volatility, we were told. Despite headline risks, Egypt’s structural case has also strengthened following FX reforms that removed the primary barrier to entry for foreign funds.

“Activity rebounds now, but disclosed funding will lag by six to nine months,” he predicts. “VCs don't stop working in volatile periods … the capital is moving,” even if the chatter is kept to a minimum.