A new tech VC fund by Algebra Ventures has completed a US$40-million first closing. Algebra claims that it’s the largest tech VC fund in Egypt.
According to a press release sent to Ventureburn, the fund will invest in up 25 tech startups or “tech-enabled” startups. Focus areas include “technology IP, fintech, industry platforms, e-commerce and consumer internet”, Algebra explained.
As for funding amounts, Algebra confirmed that investments would mostly be in the range of US$500 000 to US$4-million.
The fund is expected to achieve a final closing of US$50-million.
Algebra Ventures is aiming for a rather lofty final goal, but it’s only got US$10-million to go
“We’re here to help the next generation of entrepreneurs build market-leading companies. In the midst of all the challenges our economy is currently battling with, the belief that technology and innovation are critical to progress is our main driving force,” said Tarek Assaad, managing partner at Algebra Ventures, in the statement.
“There has been a dry up in funding recently, and this new investment comes at a very important time to revitalise growth in the sector. The new Algebra Ventures fund will provide much-needed capital to allow startups to accelerate their growth and build lasting value.”
The fund’s partners include Cisco Investments, the American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).