Algebra Ventures has announced the $40m first closing of its new technology venture capital fund, at the moment the largest in Egypt. 

Algebra Ventures targets a final closing of $50m.

The Fund is backed by Cisco Investments, the Egyptian-American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC)

The Fund will invest in up to 25 technology and technology-enabled start-ups in different areas including technology IP, fintech, industry platforms, e-commerce and consumer internet. The investments will predominantly be in the range of $500,000 to $4m. 

Tarek Assaad, Managing Partner, Algebra Ventures, said: “We’re here to help the next generation of entrepreneurs build market-leading companies. In the midst of all the challenges our economy is currently battling with, the belief that technology and innovation are critical to progress is our main driving force.”

“There has been a dry up in funding recently, and this new investment comes at a very important time to revitalize growth in the sector. The new Algebra Ventures fund will provide much-needed capital to allow startups to accelerate their growth and build lasting value,” he said.

Algebra Ventures is led by managing partners Tarek Assaad, Ziad Mokhtar and Khaled Ismail, who have collectively managed over 30 venture capital and angel investments in previous funds and were behind some of the largest technology exits in Egypt such as Fawry (exited at a $100m valuation) and SysDSoft, which was acquired by Intel.