Algebra Ventures, an Egyptian venture capital firm, and FMO, a Dutch bank for the development of entrepreneurship, announced the signing of a USD 10 million commitment for the fund manager’s second fund.
The second Algebra Ventures fund, which was announced in April 2021, makes investments in technological start-ups in Egypt with a focus on the larger Middle East and Africa region. Other funding partners include the International Finance Corporation (IFC) and European Bank for Reconstruction and Development in addition to FMO, which invests under the FMO Ventures Program (EBRD).
Algebra Ventures has invested in 21 start-ups and backed world-class entrepreneurs who are creating market-leading companies four years into the first $54 million fund.
The managing partners of Algebra Ventures, Tarek Assad and Karim Hussein, continue to provide funding and skills to digital start-ups through their new fund, fostering innovation and employment growth largely in Egypt.
Laila Hassan and Omar Khashaba have joined Algebra Ventures as general partners for the second fund, bringing considerable local and global venture capital investing experience.
The managing partner of Algebra Ventures, Karim Hussein, said: “Having FMO invest in our new fund is an honor for us. Algebra greatly benefits from FMO’s extensive knowledge and experience of the African continent and its specialization in agritech and fintech. We are eager to collaborate closely with FMO to support outstanding businesses in Egypt and all of Africa.
FMO has made early investments in Paymob (2020), Dopay (2019), and Liwwa (2019), SME lenders, and marketplaces, all of which are located in the Middle East (2018).
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By collaborating with high-potential entrepreneurs to address specific market gaps in these industries, the fund will target early-stage investment opportunities in start-ups in the fintech, agritech, edutech, logistics, e-commerce, and healthcare sectors.
FMO continues to assist the development of the Egyptian venture capital ecosystem with this investment in Algebra Ventures and other projects.