Latest Fund and Past Success
With an increasing demand for startup funding in North Africa, Algebra Ventures recently announced the launch of its newest $90 million fund. This fund will continue to focus heavily on Egyptian startups as business in the country continues to grow. The latest fund from the company will likely close in Q3 of 2021 with hopes that the $90 million goal is met and perhaps even oversubscribed.
The newest funding will be the second launched by Algebra Ventures, with the company raising $54 million in capital about four years prior. This initial money from the business was raised with the help of several well-established limited partners (LPs). These LPs included companies and financial institutions such as Cisco, the European Commission, Egyptian-American Enterprise Fund, European Bank for Reconstruction and Development, International Finance Corporation, and several smaller companies.
Algebra Ventures looks to expand its scope to $90 million for the second fund with expectations that its prior investing success will garner more enthusiasm. In fact, the company has 16 successful startups and businesses in its portfolio. Some of the notable startups in its portfolio include babysitting app Orca, household shopping app GoodsMart, ecommerce platform La Reina, and event management app Eventtus.
Investing Strategy from Algebra Ventures
If the newest fund from the company is fulfilled, Algebra Ventures will look to invest the money into 31 different startups. The company mostly does business with startups in Series A and Series B funding rounds, though seed-stage businesses are also an option. Algebra Ventures usually tries to lead each funding round and maintain a presence on the company boards it is an investor in.
Outside of being based in Egypt, the company does not have a strong focus on any single type of startup. In fact, Algebra Ventures looks to invest in startups in technology, ecommerce, fintech, industry marketplaces, business software, and consumer internet fields. Most of the investments will range between $500,000 and $2 million, though there is flexibility on both sides depending on the need of the individual business being funded.
When commenting on the launch of the second fund, Managing Partner at Algebra Ventures, Tarek Assaad, said, “I am grateful for the LPs of fund I, specifically EAEF, EBRD and IFC who supported us back when there was no venture capital to speak of in Egypt. Over the ten years I have worked in venture capital, I have witnessed the evolution of the tech entrepreneurship ecosystem in Egypt which has grown steadily over that period and exponentially in the past three years - vastly exceeding our expectations. Growth rates, capital deployed, sophistication of investors, track record of entrepreneurs are all pointing to unparalleled growth moving forward.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.