Pioneering Venture Capital in Egypt
Algebra Ventures, a leading venture capital firm in Egypt, is poised to expand its market footprint into Morocco, aiming to become a key player in the country’s burgeoning startup ecosystem. Founded in 2016, Algebra Ventures entered the Egyptian market when venture capital was virtually nonexistent, establishing itself as a pioneer in the field.
Strategic Support for Entrepreneurs
Algebra Ventures offers more than just financing; it provides a comprehensive growth platform for startups. This includes strategic guidance, access to co-investors, and talent development. "We focus on supporting bold and resilient entrepreneurs who are addressing significant problems and challenges in Egypt, Africa, and beyond," stated Karim Hussein, Managing Partner at Algebra Ventures, in an interview with Morocco World News.
Successful Investments and Fund Growth
Algebra's first fund of $54 million, sourced from development finance institutions (DFIs) like IFC, EBRD, Cisco, and various family offices, was a groundbreaking effort that invested in 21 companies. This fund supported some of Egypt’s most successful startups, including Khazna, Trella, Yodawy, Mozare3, Shift EV, Dsquares, and LuckyOne.
“We don’t only support with financing; we also have connections with almost all the regional and global investors,” Hussein highlighted, emphasizing the value Algebra adds beyond capital through strategic partnerships and co-investments.
Launch of AVII and Broader Ambitions
With the launch of their second fund, AVII, Algebra Ventures has doubled its ambition and capital, securing investments from both returning LPs and new backers like BII, FMO, and DGGF. While AVII continues to focus primarily on Egypt, it also aims to explore opportunities in North and Sub-Saharan Africa, reflecting a broader investment thesis that includes venturing beyond Egypt’s borders.
Exploration Trips to Kenya and Morocco
Earlier this year, Algebra’s partners embarked on exploratory trips to Kenya and Morocco. These visits were crucial for connecting with local and international investors, ecosystem builders, startups, pipeline companies, governmental organizations, and existing portfolio companies.
Morocco’s Appeal
Morocco has particularly captured Algebra’s attention due to its wealth of well-educated and technically skilled talent. The Moroccan government’s efforts to bolster its digital economy infrastructure further enhance the market’s appeal, creating a conducive environment for tech startups.
“We saw a very promising opportunity in Morocco. Tremendous upside potential, very strong founders, amazing talent, and strong partners to work with. So we are very excited,” said Tarek Asaad, Algebra Ventures’ second managing partner, in an interview with MWN.
Strategic Expansion and Recent Investments
Algebra Ventures has a track record of success, with its experienced team investing in over 100 companies in the past 15 years, earning a reputation as one of the most seasoned venture investors in the Middle East and Africa. Despite acknowledging the challenges of entering a new market, Asaad expressed confidence in the firm’s ability to navigate these complexities.
The firm's strategic expansion into Morocco is already bearing fruit. Algebra has made two notable investments in the country, including a landmark deal with YoLa Fresh, which secured the highest fundraising round Morocco has seen in the past five years. This investment was made in collaboration with Morocco-based Al Mada Ventures, E3, and FMO.
Continued Commitment to North Africa
In 2023 alone, Algebra invested over $10 million in 10 companies, including two in Morocco. The firm plans to increase its investment in 2024, targeting $20 million. This continued commitment underscores Algebra’s confidence in the potential of North Africa's tech ecosystem.
Conclusion
Algebra Ventures is set to significantly impact Morocco’s startup landscape, leveraging its experience, strategic support, and robust network to foster innovation and growth in the region. With its eyes firmly set on North Africa, Algebra Ventures is poised to drive the next wave of entrepreneurial success stories across the continent.
