Algebra Ventures has secured a $15-million commitment from the International Finance Cooperation (IFC), a member of the World Bank Group, as part of its second $90-million Algebra Fund.
Egyptian investor Tarek Assaad leads the leading venture capital firm. In 2016, Assaad and Karim Hussein, Egyptian investors, founded Algebra Fund as part of an effort to provide capital to startups.
Since its inception nearly six years ago, the Egyptian VC firm has invested more than $300 million in Trella, Goodsmart, elmenus, Halan, Khazna, Brimore, and many other top Egyptian startups.
Meanwhile, the fund will focus on Egyptian tech and tech-enabled startups.
However, on the part of the IFC – which has also directly invested in Algebra Ventures’ portfolio – it’s the potential for targeted startups’ impact on job creation that has brought it back into Algebra’s equation.
Managed by Laila Hassan and Omar Khashaba, who joined as General Partners in July 2021, the fund will specifically target female-led startups and startups impacting rural communities in Egypt.
In a statement, Assaad, managing partner at Algebra Ventures, said, “We are delighted to see IFC return as a limited partner in our second fund, having invested in our first fund five years ago and directly into our portfolio.
“IFC has been one of our most steadfast partners since day one, believing in our vision when there was no venture capital in Egypt. We look forward to further strengthening our partnership in the future,” he added.
Yasmine El-Hini, IFC Egypt Country Officer and Acting Country Manager for Egypt and Libya, said with the investment, IFC is helping push the country’s startup scene forward and encourage innovation.
“With its young, tech-savvy population and large market, Egypt’s entrepreneurs are perfectly poised to drive change in the country’s economy – with the right support,” he added.
It’s a sentiment echoed by the increasing VC interest in Egypt. In 2021, venture funding and the number of deals reached record highs, with Egyptian startups raising a combined $491 million across 147 deals.
Between 2020 and 2021, deployed venture capital increased by 168%. In terms of sectors, transport and logistics lead the way by quite a margin, raking in $177 million.
However, a large part attributes to Halan’s $120 million mega-round, which stands as the highest ever round achieved in the sector, and Trella’s $30 million Series A in June.
In addition to his leadership roles in Algebra, Assaad is the managing partner of Ideavelopers. He has managed $50 million in venture capital investments since 2009, including some of Egypt’s most prominent technology startups.
The Egyptian investor is the director of Smart Card Applications, SiWare and IdealRatings. In this capacity, he was also in charge of the investment in Fawry, Ashraf Sabry’s bill payment and presentment company, which realised $100 million in 2015.
Last Updated on August 30, 2023 by Safiya K
