Fewer than 10 venture capital funds are currently active in financing startups in Egypt, according to Ayman Ismail, vice president for innovation and entrepreneurship at the American University in Cairo.
Speaking during a Techne summit panel on startup growth, capital and survival, Ismail said Egypt’s startup ecosystem has become more mature over the past decade. Entrepreneurship programs now receive between 800 and 900 applications per cohort and select around 20 to 25 companies.
He said applicants increasingly bring professional experience, business skills, industry networks and a clearer understanding of their investment opportunity. The market has also shifted from a stronger focus on e-commerce and data to fintech, buy now, pay later models, artificial intelligence and deep tech.
Ismail said weaker venture capital activity does not mean early-stage startups have no funding options, but reflects a more difficult initial financing environment. Teams with a proven track record may have better access to later rounds.
Average annual startup investment in Egypt reached about $200M over the past four to five years, varying by year. However, much of that capital went to roughly 10 leading startups, while relatively few companies progressed to advanced growth and expansion stages.
He added that founders now need stronger execution capabilities, market knowledge and professional networks to attract investors and customers.
Source: Fintech Gate
