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Egyptian Venture Capital Firm Algebra Ventures Hits First Close of Second Fund at $100 Million

In April of last year, Egyptian and MENA-focused venture capital firm Algebra Ventures announced the launch of its second fund, with a target size of $90 million. The firm’s first fund was a $54 million investment in 21 startups across Egypt and the Middle East. However, despite initial predictions that it would reach its first close in Q3 2021, Algebra Ventures had to wait an entire year to achieve this milestone.

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A Year of Preparation Pays Off

The delay proved to be a blessing in disguise for Algebra Ventures, as it allowed the firm to exceed its initial target size. In a statement released by the firm, it was announced that they have finalized a $100 million first close and expect to reach their final close by the end of Q1 2023.

A Track Record of Success

Since its inception in 2016, Algebra Ventures has established itself as a leading venture capital firm in Egypt. They have backed some of the country’s top startups across various industries, including Halan, Brimore, Trella, elmenus, Khazna, Yodawy, Mozare3, and Shift EV.

A New Fund with Ambitious Goals

In an interview with TechCrunch last year, managing partners Tarek Assaad and Karim Hussein shared their vision for the second fund. They expressed hope to back 31 startups from this fund, focusing on seed to Series B companies building in fintech, logistics, health tech, edtech, and agritech sectors.

Investment Range and Geographic Focus

The firm will cut checks ranging from $500,000 to $2 million from the second fund. Algebra Ventures’ primary focus remains on Egypt, but they also plan to explore opportunities in East and West Africa. However, it’s worth noting that they have yet to make any investments in sub-Saharan Africa.

A Vote of Confidence

Reaching the first close at a higher target size than initially anticipated is a testament to the firm’s success and reputation within the industry. Hussein attributes this achievement to the importance of local funds working closely with entrepreneurs on the ground. As he puts it, "We’re four partners, all Egyptians, all living in Cairo; we’ve been investing for a long time, and we understand the local environment."

A Global Slowdown, but Africa’s Charting Its Own Course

As the global venture capital market slows down, Algebra Ventures is poised to take advantage of this trend. With their second fund now closed at $100 million, they are well-positioned to continue investing in Egypt and beyond.

Key Takeaways

Algebra Ventures’ second fund has reached its first close at $100 million.
The firm’s primary focus remains on Egypt, but they also plan to explore opportunities in East and West Africa.
They will cut checks ranging from $500,000 to $2 million from the second fund.
Reaching the first close at a higher target size than initially anticipated is a testament to the firm’s success and reputation within the industry.