Egyptian tech startups to benefit from new US$50 million Fund

Ziad Mokhtar, an Egpytian investor and Partner at Cairo-based Venture Capital Firm, Ideavelopers, has announced the launch of a new Fund that’ll invest in technology and technology-enabled startups in Egypt.

Known as Algebra Ventures Fund, the new US$50 million Fund will make Series A and B investments primarily in technology startups in Egypt.

Startups that the Fund will support will be those in sectors such as ecommerce, consumer Internet, business platforms, online market places, financial technology, and core technology.

Tech startups in other countries in the Middle East and North Africa (MENA) region will also benefit from the Fund.

The Fund, which will be incorporated as a private Limited Liability Company in the Netherlands, will be managed by Algebra Ventures B.V, whose Principals are Khaled Ismail, Tarek Assaad, and Ziad Mokhtar.

At the moment, about US$40 million of the Fund has been raised with half of it coming from the Egyptian-American Enterprise fund (EAEF) and the International Finance Corporation (IFC).

Already, the Fund is in talks with entrepreneurs with the first deals expected to be closed by August 2016.

Although Egyptian startups have attracted accelerator funds and angel investors in recent times, most still don’t have enough access to Series A/B/C capital. This has caused many of them to wind down.

Algebra Ventures Fund seeks to address this problem by making sure Series A and B investments (which are typically in the range of single-digit millions of dollars) are available to these startups.

Source: Wamda.

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