IFC Funds Algebra Ventures With $15m to Propel Egypt’s Startup Ecosystem

IFC, a World Bank Group member, will invest $15 million in Algebra Ventures’ second fund, which will support the growth of approximately 20 technology startups in Egypt and across Africa.

Algebra Ventures II, with a target size of $90 million, will focus on women-led businesses and those serving rural communities, and will provide access to finance to tech startups while driving innovation and job creation primarily 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,” says Tarek Assaad, Managing Partner at Algebra Ventures. Since the beginning, IFC has been one of our most steadfast partners, believing in our vision even when there was no venture capital in Egypt. We look forward to further strengthening our partnership in the future.”

Access to financial capital promotes economic and job growth, with entrepreneurship playing a significant role. Despite this, the amount of venture capital available in Egypt is only a quarter of the emerging market average, despite having increased more than tenfold since 2016.

The investment is part of the IFC’s strategy to help Africa’s thriving start-up and entrepreneurship ecosystem. In addition, today’s announcement marks IFC’s second investment in Algebra Ventures.

IFC invested $10 million in 2016 to co-anchor Algebra’s inaugural $54 million fund, which also included investments from Cisco Investments, the Egyptian American Enterprise Fund, and the European Bank for Reconstruction and Development. Algebra Fund I was the first Egypt-focused venture capital fund, supporting 21 technology startups and creating over 3,500 direct and 28,000 indirect jobs.

Earlier this year, the IFC made a direct $5 million investment in Brimore, an Algebra Ventures portfolio company and social commerce company, as well as a $20 million investment in the Ezdehar Fund to help smaller businesses access finance.

As of June 2021, IFC’s global Venture Capital investments totaled $1.6 billion in over 100 companies and venture capital funds, assisting nearly 1,700 businesses and driving innovation and growth.

“Egypt’s entrepreneurs are perfectly poised to drive change in the country’s economy – with the right support,” said Yasmine El-Hini, IFC Egypt Country Officer and Acting Country Manager for Egypt and Libya. “With this investment, we are assisting in the advancement of the country’s startup scene and encouraging innovation.”