The Egyptian-American Enterprise Fund (EAEF) announced on Wednesday that it invested $10m in a newly-launched venture capital fund, Algebra Ventures, which is expected to support between 20 to 25 start-ups with investments in the range of $0.5m to $4m.
Algebra Ventures said in a statement that it seeks to back entrepreneurial teams with the vision and execution skills needed to disrupt large markets and build sector-leading companies. The fund will support technology and technology-enabled start-ups in different areas, including fin-tech, business application, online marketplaces, e-commerce, and consumer internet, according to the statement.
The EAEF’s primary goal is to attract new foreign investors to local markets, promote financial inclusion, and create employment opportunities in the country. The statement also said that the fund aims to identify and address gaps in financing markets for entrepreneurs and small businesses in Egypt, and create opportunities for the private sector to flourish. “This investment is a significant development in the fund’s strategy to scale its financing to entrepreneurs,” said the EAEF.
James A. Harmon, chairperson of the EAEF, said: “The venture capital sector is an important catalyst for growing promising entrepreneurs, creating jobs, and utilising technology to improve the access and affordability of quality services in Egypt. For this reason, we are pleased to make today’s announcement.”
The EAEF’s director of policy, Amal Enan, added that the company looks forward to supporting the Algebra Ventures team in growing and adding value to their future investments for the purpose of creating jobs and improving the overall quality of life for Egyptians.
The EAEF stated that it participated in the first and largest exit for a fin-tech company in Egypt—electronic bill payment platform Fawry. The company also invested $1.2m in SmartCare Medical, its first investment in a tech-enabled healthcare start-up.
The EAEF is working to allocate 10% of its $300m grant to fund start-ups and small- and medium-sized enterprises in Egypt.