Startup Lagos

12-Feb-2025

Fresh News

Foundation Ventures Secures $25 Million for Egypt and Africa Tech Startups 4 months ago

Foundation Ventures, a prominent Egyptian venture capital firm, has announced the first close of its second fund, FVFII, successfully raising $25 million to invest in early and growth-stage technology startups. This initiative aims to strengthen Egypt's emerging entrepreneurial ecosystem while supporting promising ventures across the African continent.

Founded in 2018 by Mazen Nadim, Omar Barakat, and Ziyad Hamdy, the Cairo-based firm has garnered support from notable investors, including the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and distinguished Egyptian businessman Onsi Sawiris.

Foundation Ventures plans to deploy this capital to nurture startups from their inception through to regional and potentially global expansion. A portion of the fund will also be dedicated to investing in promising African startups beyond Egypt, reflecting the firm's commitment to fostering innovation across the continent.

Mazen Nadim, Managing Partner at Foundation Ventures, emphasized Egypt's substantial tech talent pool and its status as one of the largest economies in the Middle East and Africa. He noted that the current devaluation of the Egyptian currency presents a unique opportunity for startups. "The devalued currency offers startups a rare chance to harness superior tech talent and use Egypt as a cost-efficient testbed," Mr. Nadim stated. He further explained that this environment allows companies to "refine their business models locally and emerge as competitive players on the regional and global stages."

Mr. Nadim also addressed the recent market corrections impacting the Egyptian startup landscape, suggesting that the downturn has acted as a filter, revealing "strong, well-managed companies" and fostering a new generation of founders focused on "sustainability and operational efficiency."

In addition to financial backing, Foundation Ventures provides its portfolio companies with access to a robust network of established businesses in Egypt. The firm emphasizes a hands-on approach, aiming to equip startups with the resources and connections necessary for scaling both locally and regionally.

Yasmine Ghobrial, Chief Investment Officer at the EAEF, expressed confidence in the team and strategy of Foundation Ventures. "This partnership underscores our commitment to supporting innovative entrepreneurs who are shaping the future of the region and our belief in the significant potential of Egypt's growing venture capital ecosystem to drive economic growth," she remarked.

The successful first close of FVFII indicates sustained investor interest in the Egyptian and African technology sectors, even amid recent global economic challenges. The fund's focus on early-stage ventures and its commitment to providing operational support suggest a strategic approach to nurturing the development of the next generation of successful African tech companies.

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