The International Finance Corporation (IFC) announced a $15 million investment in the second fund from venture capital firm Algebra Ventures, with the goal of assisting internet entrepreneurs with access to capital and driving innovation and job development in Egypt.
According to the IFC, the $15 million investment in Algebra Fund II would help support the expansion of about 20 digital businesses, particularly in Egypt but also across Africa.
The fund, which has a goal of raising $90 million, will focus on women-led enterprises and those that serve rural communities.
Algebra Ventures is a $50 million venture capital firm based in Cairo that invests in early-stage digital startups in Egypt and the Middle East and North Africa (MENA) that are transforming the way people live and do business.
Cisco, the European Commission, the EAEF, the EBRD, the IFC, and private family offices are among its LPs.
“We are thrilled to see IFC return as a limited partner in our second fund, after investing in our first fund and directly into our portfolio five years ago.
IFC has been one of our most steadfast partners since the beginning, believing in our vision when there was no such thing as venture capital in Egypt “Algebra Ventures’ Managing Partner, Tarek Assaad, stated.
“Egypt’s entrepreneurs are well prepared to create transformation in the country’s economy – given the appropriate support,” said Yasmine El-Hini, IFC Egypt Country Officer and Acting Country Manager for Egypt and Libya.
“With this investment, we are assisting in the advancement of the country’s startup scene and encouraging creativity,” she said.
The investment is part of the International Finance Corporation’s (IFC) commitment to promoting Africa’s burgeoning startup and entrepreneurship ecosystem.
IFC made direct investments of $5 million in Brimore, an Algebra Ventures portfolio firm and social commerce platform, and $20 million in the Ezdehar Fund to help small businesses access capital earlier this year.
IFC’s global Venture Capital investments in over 100 companies and venture capital funds totaled $1.6 billion as of June 2021, supporting approximately 1,700 enterprises and helping to fuel innovation and growth.