Egypt’s Tech Startups Attract Venture Capital for AI and IoT Innovation

Egypt's startup ecosystem is experiencing significant growth, marked by a 37% annual increase in venture capital investments and a deep pool of talent. Investors are playing a crucial role in fueling innovation and providing scaling opportunities for founders across the nation. Key players in this thriving environment include:

 A leading early-stage VC firm in the MEA region, established in 2011, with over $85 million in assets. It has supported over 2,000 entrepreneurs, creating more than 8,000 jobs through investments ranging from $50,000 to $500,000, and offers a vast mentor network. Notable successes include Instabug and Hawaya (acquired by Match Group).
A15: Founded in 1996, this Cairo-based VC firm focuses on early-stage tech startups in Egypt and MENA, having invested in 43 companies. Their focus areas include enterprise applications, consumer tech, FinTech, retail, and AI. Key achievements include TPAY and Paymob. They also actively support startups through programs like "Growth IQ" in collaboration with AUC Venture Lab.
Algebra Ventures: With a fund of $144 million, having invested $54 million in 21 startups (85% Egyptian) and allocating $90 million for 30 more, Algebra Ventures backs tech-driven startups from seed to Series B. They provide not only funding but also strategic advice and operational support, with investments spanning sectors like embedded finance, agritech, AI, and automotive e-commerce.
Sawari Ventures: This Cairo-based VC firm invests in tech-driven businesses across North Africa, supporting 19 early and growth-stage companies in various sectors including fintech, edtech, and deeptech. Notable successes include SWVL (went public on Nasdaq), KNGINE (acquired by Samsung), and Instabug. They operate through North Africa Fund I and Egypt Fund I.
Endure Capital: An early-stage fund that has invested $27 million in 52 startups with four exits, combining financial backing with strong mentorship. Their portfolio includes Careem and NowPay. They emphasize long-term relationships with founders and foster ecosystem development through initiatives like "Endure…Pay it Forward."
500 Global: This firm has invested in over 60 Egyptian companies across various industries, including MaxAB, Homzmart, and Breadfast. In partnership with ITIDA, they launched the Scale-Up Program in 2023 to support promising Egyptian startups with mentorship and resources. They focus on scalable solutions in the expanding digital economy.
Cairo Angels: Egypt’s first formal angel investment network, launched in 2012, now operating under Acasia Group. They focus on early-stage tech startups in Egypt and MENA, providing funding (EGP 250,000 – 2,000,000) and non-financial support like due diligence and deal structuring. They have also introduced initiatives like DarE for AEC tech startups.
Falak Startups: Launched in 2018, Falak Startups has made 69 investments with 4 exits in Egypt, focusing on seed-stage funding (up to EGP 2,000,000). Their strategy includes product development, business growth, market expansion, and follow-on funding support, along with an acceleration program and a "Virtual Stage" platform connecting startups with investors.
Disruptech Ventures: Launched in 2021 with a $36 million fund, Disruptech Ventures focuses on early-stage investments in fintech and digital services startups in Egypt. Their portfolio includes Khazna, Brimore, and Hamilton, and they provide mentorship and strategic guidance beyond capital.
Egypt Ventures: Established in 2017 by the Ministry of Investment and International Cooperation, Egypt Ventures invests in venture capital firms, accelerators, and high-growth businesses to drive ecosystem development and economic competitiveness. They have invested EGP 306.2 million in 150 startups between 2017 and 2020.
Despite macroeconomic challenges, Egypt's startup scene remains resilient, with Cairo being a major talent hub in MENA. Fintech and ICT sectors are leading growth, with increasing local investor confidence and diversification into sectors like IT solutions. Egypt accounted for 22% of Africa's total funding in H1 2024. Government initiatives like tax breaks for startups aim to further encourage growth. The ecosystem has seen over 800 deals involving more than 160 VC firms between 2019 and 2023, solidifying Egypt's position as a key innovation hub in the MENA region. Ongoing investor and policy support is expected to maintain this upward trajectory.