Algebra Ventures, a leading venture capital firm led by Egyptian investor Tarek Assaad, has secured a $15-million commitment from the International Finance Cooperation (IFC), a member of the World Bank Group, as part of its second $90-million Algebra Fund.
Assaad and Karim Hussein, Egyptian investors, founded Algebra Fund in 2016 as part of efforts to provide capital to startups, assist with strategy and operations, and build out teams to ensure that the most qualified and ambitious individuals continue to join Algebra’s portfolio.
Since its inception nearly six years ago, the Egyptian VC firm has invested more than $300 million in Trella, Goodsmart, elmenus, Halan, Khazna, Brimore, and many other top Egyptian startups.
The $15-million investment from the IFC, which is returning as a limited partner, comes nearly a year after Algebra secured a $15-million equity commitment from the European Bank for Reconstruction and Development under its second tech fund.
Algebra Ventures will use the capital injection to make its first investments in East and West Africa, as it continues to focus on Egyptian tech and tech-enabled startups, with a particular emphasis on female-led startups and startups impacting rural communities in Egypt.
“We are delighted to see IFC return as a limited partner in our second fund, having invested in our first fund five years ago as well as directly into our portfolio,” Assaad, managing partner at Algebra Ventures, said.
“IFC has been one of our most steadfast partners since day one, believing in our vision when there was no venture capital in Egypt.” “We look forward to further strengthening our partnership in the future,” he added.
According to Yasmine El-Hini, IFC Egypt country officer and acting country manager for Egypt and Libya, the new investment will propel the country’s startup scene forward and encourage innovation in the ecosystem as the industry expands.
In addition to his leadership roles in Algebra, Assaad is the managing partner of Ideavelopers, where he has managed $50 million in venture capital investments since 2009, including some of Egypt’s most prominent technology startups.
The Egyptian investor is the director of Smart Card Applications, SiWare and IdealRatings. In this capacity, he was also in charge of the investment in Fawry, Ashraf Sabry’s bill payment and presentment company, which realized $100 million in 2015.
