Saudi-Egyptian venture capital firm EDAFA has announced plans to deploy USD 10 million in Egyptian startups during 2026, signaling a significant boost in its commitment to the local ecosystem. According to CEO Essam Aly Mostafa, this target represents a more than 25% increase compared to the firm’s deployment last year, reflecting a strategy to capture opportunities as competition for high-quality startups intensifies.
A Disciplined Investment Strategy
Over the past 18 months, EDAFA has already invested approximately USD 8 million across more than 20 Egyptian startups, spanning stages from Pre-Seed to Series A. While the firm had initially aimed to deploy USD 13 million during this period, it adopted a more disciplined pace. This approach prioritized backing startups that aligned with EDAFA’s financial benchmarks and long-term strategic vision, ensuring a focus on sustainable growth over rapid capital allocation.
The firm’s thesis remains heavily centered on Egypt, with its CEO citing the country’s deep pool of entrepreneurial talent and its large, dynamic consumer base as key drivers for investment.
Hands-On Cross-Border Model
EDAFA operates as a cross-border platform rather than a traditional VC fund, a model that blends equity investment with deep operational involvement. With a regional portfolio of 61 companies across Saudi Arabia, the UAE, Jordan, Kuwait, and Egypt, the firm typically acquires ownership stakes ranging from 5% to 45%. This structure allows EDAFA to maintain meaningful participation and provide hands-on support while ensuring founders retain significant long-term incentives.
A core component of its model is a KPI-driven funding structure. Instead of deploying capital all at once, EDAFA releases funding in tranches tied to the achievement of measurable milestones. This method is designed to effectively balance risk control for the firm while incentivizing and accelerating growth for its portfolio companies.
Spotlight on Portfolio and Expansion
One of the firm’s recent investments is Shares, an Egyptian platform enabling fractional real estate ownership with entry tickets as low as SAR 500. The company is currently preparing for its expansion into Saudi Arabia, pending regulatory approvals from the Financial Regulatory Authority and the Capital Market Authority.
Beyond its strong focus on Egypt, EDAFA is actively planning further geographic expansion. The firm has identified Oman, Bahrain, Switzerland, Kenya, and the UAE as key markets on its future roadmap.
About EDAFA
EDAFA is a Saudi-Egyptian venture capital firm that invests in startups from the Pre-Seed to Series A stages. Operating as a hands-on, cross-border platform, EDAFA provides both capital and operational support to its portfolio companies across the MENA region. Its unique investment model utilizes KPI-linked funding tranches to foster disciplined growth and alignment with its founders.
Source: Waya
