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Doaa Moneim – Ahram Online
The International Finance Corporation (IFC), a World Bank Group member, invested $15 Million in the second fund from venture capital firm ‘Algebra Ventures’ on Monday.
The investment supports tech start-ups with access to finance, innovation and job opportunities primarily in Egypt. Algebra Ventures is the leading tech company in Egypt. It provides venture capital for start-ups and entrepreneurs operating in the Egyptian market.
“This investment will help back the growth of roughly 20 technology start-ups in Egypt and in Africa more broadly. The fund, featuring a target size of $90 Million, will have a special focus on women-led businesses and those serving rural communities”, the IFC said.
It added that VC investments in Egypt represent 25% of VCs existing in all emerging markets and grew over 10-fold since 2016. The investment is part of the IFC’s strategy to support African start-ups and the entrepreneurship ecosystem.
“We are delighted to see the IFC return as a partner in our second fund, having invested in our first fund five years ago and directly into our portfolio. 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”, said Tarek Asaad, managing partner at Algebra Ventures.
“With its young, tech-savvy population and large market, Egypt’s entrepreneurs are perfectly poised to drive change in the country’s economy with the right support,” said Yasmine al-Hini, the IFC’s country officer and acting country manager for Egypt and Libya.
Since the beginning of 2022, the IFC has directly invested $5 Million in Brimore, an Algebra Ventures portfolio company and social commerce company, and $20 Million in the Ezdehar Fund to help smaller businesses access finance.
