Algebra Ventures, a venture capital (VC) fund manager located in Egypt, has just recently published a statement on the first close of its second fund, which is dedicated to Egyptian companies, which reached $100 million. The total amount raised exceeded the aim of $90 million by a substantial margin and included contributions from limited partners who had previously invested in the company’s inaugural fund.
The company anticipates that it will achieve its ultimate financial goal during the first quarter of 2023 and has plans to raise an additional $15 million prior to the end of the current calendar year.
Tarek Assaad and Karim Hussein are the managing partners of the fund, whereas Laila Hassan and Omar Khashaba are the general partners.
In spite of the fact that the fund’s primary focus will be on making investments in Egyptian enterprises, it will also study the possibilities of making investments in the countries of East and West Africa.
In April of the previous year, Algebra Ventures, a venture capital firm that focuses on Egypt, the Middle East, and North Africa, announced the launch of its second fund, which had a total of $90 million in investment funds. It was a continuation of their previous endeavor, which consisted of a fund that invested $54 million in 21 enterprises around Egypt and the Middle East.
Algebra Ventures was forced to wait an entire year before achieving its objective, despite the fact that the company had predicted its first closing would occur in the third quarter of 2021. However, due to the delay, Algebra Ventures was able to raise a larger sum of money for the fund than they had originally intended.
The company announced in a press release that it has successfully completed its first closing, which totaled $100 million, and that it anticipates its final closing will occur by the end of the first quarter of 2023.
Since its inception in 2016, Algebra Ventures has provided funding to some of Egypt’s most successful new firms in a range of industries. This list includes, amongst other things, the names Halan, Brimore, Trella, elmenus, Khazna, Yodawy, Mozare3, and Shift EV.
According to the partners, Algebra has plans to make an investment of $15 million in the firm before the end of the year. If these plans are carried out, the investment will take place during the first year that the company is in business. To this point, it has helped finance the launch of four new companies, one of which is Sylndr, an online marketplace for pre-owned automobiles that, in May of this year, received the highest pre-seed investment in the history of Africa, which amounted to a total of $12.6 million.
Egypt will continue to be the primary focus of Algebra’s operations, despite the fact that the company’s second fund will investigate the viability of potential investment opportunities in East and West Africa.
One of the few companies to have recently accomplished the first or final closing of big funds aiming towards the Middle East, including ADQ-backed Further Ventures and Endure Capital, Algebra Ventures is one of the few enterprises that can make this claim. In addition to this, it is considered to be the largest indigenous fund in Africa, and it is included on the same list as well-established funds that invest in African growth-stage companies, such as Partech Africa, TLcom Capital, Norrsken22, and Novastar Ventures.
Moreover, it has a reputation for being the most successful indigenous fund in Africa. These funds played a significant part in the increase of venture capital into Africa’s digital economy, which amounted to more than $5 billion and was a contributing factor in the development of unicorns and unicorns. The fundraising efforts that they have been making this year, on the other hand, have taken on a slightly different form as a result of macroeconomic factors that have an effect on global venture capital.
During the course of this year, portfolio companies held by funds with an emphasis on Africa experienced issues that were comparable to those seen in other regions. In the case of Algebra, one example is Brimore, a social commerce startup that just recently announced the completion of a $25 million Series A funding round, reduced its workforce by hundreds of positions, experienced a significant drop in its valuation (up to 40 percent, according to some sources), and is in the process of reorganizing its operations at the present time.
An impressive accomplishment was achieved by Algebra Ventures when its first fund closed at a size that was greater than the size that was projected for its second fund.
It highlights a clear vote of confidence from the company’s first fund investors, who have increased their commitments to the second fund, as well as commitments from new investors who share the company’s vision for the potential of venture capital in Egypt and the region. Specifically, it highlights a clear vote of confidence from the investors who have increased their commitments to the second fund.
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