One of Egypt’s most prominent venture capital firms, Algebra Ventures announced early last week that it is rolling out a second fund, valued at $90 million. This new fund will primarily target startups focused on the Egyptian market, but with a separate allocation for the Middle East and Asia region. The first closing of this new fund is expected by the end of Q3 2021.
For those out of the loop, Algebra’s first fund, worth $54 million, has invested in 21 startups so far over the past four years. Many of the entrepreneurs it has backed during this period have established themselves on a regional and global scale.
The fund’s track record with Series-A funding round has been even more remarkable. According to data available in the public domain, the top-6 companies backed by Algebra are valued at over $350 million. Additionally, the number of jobs created directly and indirectly by all of Algebra’s portfolio companies today stands at more than 20,000.
Buoyed by this success, Algebra is now expanding its footprint in the local and regional startup ecosystems by launching the second fund. Specifically, it aims to support startups that focus on transforming industries while using technologies to solve real-world problems.
“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,” Karim Hussein, Managing Partner at Algebra Ventures, said after the announcement of the launch of their second fund.