The risk capital fund Algebra Ventures aims to complete its first closure with an investment portfolio worth $40m. The fund is specialised in financing start-ups and small companies that rely on information technology and communications solutions.
Tarek Assaad, the founding partner of the fund, said in an exclusive statement to Daily News Egypt that the fund aims to attract financing within the range of $10m-$20m before the second closure of the fund, to reach a total investment portfolio of $50m-$60m.
He added that there is currently a lack of financing for start-ups, which Algebra Ventures is seeking to resolve. Algebra Ventures’ managers are Tarek Asaad, Ziad Moukhtar, and Khaled Ismail. They have managed more than 30 investments, whether capital or angel investments in previous funds.
The new fund, supported by Cisco Investment, the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC), aims to finance emerging companies that have growth opportunities and work in the field of technology, looking for institutional financing.
“Start-ups are some of the major sources of employment and innovations; however, many of them are struggling when it comes to financing. With the provision of more financing for these companies, we can help them grow and provide more jobs,” said Philippe Le Houerou, executive vice president and CEO of IFC.
Hassan El Khatib, managing director of EBRD, said that it seeks to reconstruct and develop through the fund in order to deal with the lack of investment capital in an early phase, and directing young people in order to help the growth of investment capital and focus on technology.
The fund will invest in 25 start-ups working in fields related to technology, including technological intellectual property, financial services technology, digital industry platforms, e-commerce, and internet applications for consumers.
The investment value to be injected by the fund in each company will range from $500,000 to $4m.