EGYPT – The International Finance Corporation (IFC) has announced the second investment of US$15 million into venture capital firm Algebra Ventures to support tech start-ups with access to finance and drive innovation and job creation primarily in Egypt.
The investment will help support the growth of roughly 20 tech start-ups primarily in Egypt but also in Africa more broadly.
The fund, which has a target size of US$90 million, will have a special focus on women-led businesses and those serving rural communities.
The investment is also part of the IFC’s strategy to support Africa’s blossoming start-up and entrepreneurship ecosystem.
In 2016, the IFC invested US$10 million to co-anchor Algebra Venture’s inaugural US$54 million funds, which also attracted investments from Cisco Investments, the Egyptian-American Enterprise Fund, and the European Bank for Reconstruction and Development.
Algebra Fund I, was the first Egypt-dedicated VC fund and has supported 21 tech start-ups and created over 3,500 direct and 28,000 indirect jobs.
Earlier this year, the IFC directly invested US$5 million in Brimore, an Algebra Ventures portfolio company, and social commerce business and US$20 million in the Ezdehar Fund to help smaller businesses access finance.
“We are delighted to see the IFC return as a limited partner in our second fund, having invested in our first fund five years ago as well as directly into our portfolio,” said Tarek Assaad, Managing Partner at Algebra Ventures.
“The IFC has been one of our strongest partners since day one and believed in our vision when there was no venture capital to speak of in Egypt. We look forward to continuing to strengthen our partnership going forward.”
Over the past two years, IFC has invested US$723 million in Egypt to help restore investor confidence, create jobs, and raise education standards.
It has also been providing advisory services to strengthen business regulations, increase access to finance, support the development of smaller enterprises, and assist in the creation of public-private partnerships in infrastructure.
As of June 2021, the IFC’s global VC investments reached US$1.6 billion in over 100 companies and VC funds, supporting nearly 1,700 companies and helping to drive innovation and growth.
The increased investment in the North African country has enabled easy access to financial capital that helps drive economic growth and job creation.
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