FMO Invests $10m in Algebra Ventures’ Second Fund

FMO Invests $10m in Algebra Ventures’ Second Fund

FMO, the Dutch entrepreneurial development bank, and Algebra Ventures, Egypt’s venture capital firm, have signed a $10 million commitment for the fund manager’s second fund in the presence of H.E. Mr. Han-Maurits Schaapveld, the Dutch ambassador in Cairo.

Algebra Ventures’ second fund, announced in April 2021, will invest in technology start-ups in Egypt, focusing on the broader Middle East and Africa region. In addition to FMO, which is investing through the FMO Ventures Program, the $90 million fund has previously received commitments from the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

Commenting on the investment, Marieke Roestenberg, Head of the FMO Ventures Program, said, “We are excited to partner with Algebra Ventures, one of the most deep-rooted and seasoned venture capital firms in Egypt. FMO believes regional investors like Algebra Ventures play an instrumental role in both market creation and maturing. We look forward to continuing to support and learn from the flourishing Egyptian venture capital ecosystem.”

How Algebra Ventures’ utilizing the Second Fund

The second fund will look for early-stage investment opportunities in fintech, agritech, edtech, logistics, e-commerce, and healthcare start-ups, partnering with high-potential founders to address specific market gaps in these sectors.

So far, Algebra Ventures has invested in 21 start-ups and supported world-class entrepreneurs building market-leading businesses four years into its first $54 million fund. Algebra Ventures’ managing partners Tarek Assad and Karim Hussein, continue to support technology start-ups with access to finance and talent through their new fund, primarily driving innovation and job creation in Egypt.

Laila Hassan and Omar Khashaba have joined Algebra Ventures as general partners for the second fund, bringing extensive regional and international venture capital investment experience. The fund will pursue early-stage investment opportunities in fintech, agritech, edutech, logistics, e-commerce, and healthcare start-ups by partnering with high-potential founders to address specific market gaps in these sectors.

Karim Hussein, the Managing Partner at Algebra Ventures, said, “It is an honor for us to have FMO as an investor in our new fund. FMO’s wealth of experience and knowledge across the African continent and its deep expertise in agritech and fintech, in particular, are of significant strategic value to Algebra. We look forward to working closely with FMO to support exceptional companies in Egypt and across Africa.”

FMO’s investment is consistent with the bank’s goal of enabling innovative business models with a positive impact in Africa, the Middle East, and Asia. The commitment is made possible by the FMO Ventures Program, a EUR 200 million investment program co-funded by the FMO, the Ministry of Foreign Affairs, and the European Commission that focuses on early-stage technology-enabled innovative business models in frontier and growth markets.

FMO has made early investments in merchant payment platform Paymob (2020), salary payment platform Dopay (2019), and SME lender and marketplace Liwwa in the Middle East (2018).

FMO continues to support the expansion of the Egyptian venture capital ecosystem through this investment in Algebra Ventures and other initiatives.