Algebra Ventures is preparing to launch its third fund as the Egyptian venture capital firm looks to increase investments in Egypt and expand across other African markets, managing partner Laila Hassan said.
The firm’s first and second funds have a combined value of $154M. Its $54M first fund, launched in 2016, backed 22 early-stage Egyptian technology startups. The second fund reached $100M in October 2022, exceeding its initial $90M target, and has invested in more than 15 companies across Egypt, Morocco and Nigeria over the past three years.
Algebra Ventures has not yet disclosed the target size or closing timeline for its third fund. Hassan said the firm is particularly interested in startups addressing challenges shared across multiple markets and capable of expanding beyond their home countries.
She pointed to Egyptian AI company Synapse Analytics, which helps banks and financial institutions make credit and risk decisions, as an example of a startup that has expanded into the Gulf and Latin America. The firm has also invested in Morocco-founded Deep Echo, which develops AI technology for ultrasound examinations related to pregnancy and fetal health and has expanded into the US market.
Algebra Ventures evaluates both AI-native startups and companies using AI to improve products, productivity and margins. Hassan said the technology alone is not enough, with proprietary data, licenses, customer networks and sector expertise also important to building a durable advantage.
Source: FinTech Gate
