Egyptian VC Firm Prepares for Major Expansion


Sawari Ventures, an Egypt-based venture capital firm, is set to launch its second fund, "Sawari Ventures II," in early 2025 with the goal of raising $200 million. This ambitious move comes as the firm builds on the success of its first fund, aiming to expand its portfolio into new sectors and regions. According to Launch Base Africa, the upcoming fund will focus on supporting startups across North and West Africa, as well as parts of East Africa.

Dual Approach: Local and International Investment


The $200 million fund will consist of two key components: a domestic fund targeting Egyptian startups and an international fund aimed at attracting foreign investors and development finance institutions (DFIs). Around 70% of the total fund, approximately $140 million, will be channeled toward Egyptian startups over the next four to five years. This approach allows Sawari Ventures to mobilize local capital while also driving international investment in key African markets like Tunisia, Morocco, Kenya, and West Africa.

Investment Focus on Growth and Innovation


Sawari Ventures II will primarily target startups in their Series A and B stages, while also allocating a portion for seed-stage investments. The firm plans to heavily invest in sectors that align with its broader strategy of diversification and innovation. These sectors include:

  • Financial technology (fintech)
  • Deep technology
  • Digital education
  • Health technology
  • Climate technology
  • Agricultural technology

The focus on these high-growth sectors reflects Sawari’s vision of tapping into industries with significant potential for long-term impact and transformation.

Strategic Partnerships for Cross-Border Collaboration

Partnering with Bpifrance to Foster Global Innovation
One of Sawari Ventures' recent moves includes a strategic partnership with Bpifrance, France’s largest venture capital firm. This collaboration has resulted in Bpifrance establishing operations in Egypt, with the aim of creating greater synergy between Africa, the Middle East, and France. The partnership focuses on fostering innovation, talent exchange, and expanding access to capital for startups across these regions.

This partnership is expected to facilitate entry into African markets for French companies, while also enabling African firms to set up research and development (R&D) operations in France. By easing access to capital and fostering cross-border collaboration, the partnership with Bpifrance positions Sawari Ventures as a key player in bridging the gap between African startups and international markets.

Building on Success: Expanding Regional Impact


Sawari Ventures’ first fund has already made significant strides in supporting Egyptian startups, and the upcoming launch of Sawari Ventures II signals the firm’s intent to expand its regional influence. By focusing on high-growth sectors and fostering key partnerships, the firm aims to play a pivotal role in shaping the future of innovation across Africa.

As Sawari Ventures gears up for the official launch of its second fund, the African startup ecosystem is poised to benefit from increased investment, driving technological advancements and economic growth across the continent.

Looking Ahead: 2024 Investment Plans


In addition to the forthcoming launch of Sawari Ventures II, the firm announced in February 2024 its plans to create a separate $150 million fund focused specifically on supporting Egyptian startups. This move underscores the firm’s long-term commitment to driving innovation and supporting entrepreneurial growth within Egypt and beyond.