IFC INVESTS IN ALGEBRA VENTURES TO SUPPORT EGYPTIAN START-UPS IN THE TECHNOLOGY SECTOR

The International Finance Corporation (IFC) announced an investment in ALGEBRA Ventures' second Venture capital fund to support tech startups to get fund, drive innovation and create jobs in Egypt.

IFC’s $15 million investment in Algebra II Fund will help support the growth of 20 startups in the technology sector, focusing on Egypt, as well as Africa in general. The Fund, with a target of $90 million, will focus, in particular, on women-led businesses and those serving rural communities.

Access to financial capital helps drive economic and jobs growth, and entrepreneurship is one of the most important contributing factors. However, the amount of the available venture capital in Egypt does not exceed one quarter of its average in emerging markets, although it has grown more than 10 times since 2016.

Speaking about the Foundation's investment, Tariq Assad, Managing Partner at Algebra Ventures, said: "We are pleased that IFC has returned as a limited partner in our second fund, after its investment in our first fund five years ago. It also has direct investment in our portfolio. The Foundation has always been a strong partner with us since day one, believing in our vision when there was little venture capital in Egypt. We look forward to further strengthening our partnership in the future.”

“young Egyptian entrepreneurs with high technical skills in a large market like Egypt are undoubtedly well placed to drive change in the country's economy if they get appropriate support. Through this investment, the Foundation helps to move the country's startup system forward and encourage innovation,” Yasmine El-Hini, IFC Egypt Country Officer and Acting Country Manager for Egypt and Libya.

This investment is part of the Foundation's strategy to support Africa's flourishing startup and entrepreneurship system. Today's announcement also represents the Foundation's second investment in Algebra Ventures.

It should be noted that the Foundation invested $10 million in 2016 to participate in the creation of the First Algebra Fund with a capital of $54 million, which attracted investments from Cisco Investments, the Egyptian American Companies Fund and the European Bank for Reconstruction and Development. The First Algebra Fund is the first dedicated venture capital fund in Egypt, which has supported 21 tech startup and helped to provide more than 3500 direct and 28,000 indirect jobs.

Earlier this year, the Foundation directly invested $5 million in Primore, an Algebra Ventures portfolio company that works in social trade, and $20 million in Ezdehar Fund to help smaller businesses get funding.

As of June 2021, IFS’s investments in venture capital globally amounted to $1.6 billion in more than 100 companies and venture capital funds, supporting 1,700 companies and helping drive innovation and growth.