Egyptian venture capital firm Sequence Ventures is looking to significantly increase the size of its deep technology fund, targeting an additional EGP300 million ($6.3 million) from private banks this year.
According to Sequence Ventures CEO Mohamed Fahmy, this capital injection would bring the fund’s total value to EGP500 million (10.5 million) by the end of 2024. The fund focuses on backing emerging companies that leverage scientific research to develop commercially viable solutions.
Fahmy highlighted the recent devaluation of the Egyptian pound as a factor influencing their fundraising strategy. He believes it incentivizes an increase in participation from local financing institutions. However, Fahmy acknowledges current challenges in the venture capital landscape, including the high cost of funds and a preference among local banks for debt instruments over riskier equity investments.
Focus on Early-Stage Egyptian Startups
Sequence Ventures has established itself as a key player in Egypt’s growing startup ecosystem. The firm made its debut in 2021 by leading the seed funding round for AIM Technologies, the Middle East’s first AI-powered customer experience platform. It has also invested in Egyptian startups Rology as well as in Nawah Scientific.
A key differentiator for the fund is its network of partnerships with 45 European venture capital firms and accelerators.
“These strategic alliances offer significant value to our portfolio startups,” explained Senior Business Analyst Alia Bayoumi. “They provide matchmaking opportunities and potential exit strategies, such as acquisitions by European companies, for Egyptian startups looking to expand internationally.”
Investment Strategy and Team
Sequence Ventures focuses on early-stage investments, targeting pre-seed to Series A funding rounds for Egyptian startups.
The leadership team at Sequence Ventures boasts extensive experience in the financial and investment sectors. Executive Chairman Karim Helal is the Managing Director of Carbon Holdings, while Maged Shawky, former Executive Chairman of Beltone, serves on the board. Founding partners include Mohamed El Sherif, Managing Director of Ironwood Investments, and Mohamed Fahmy, who previously co-founded Ironwood with El Sherif. The firm’s advisory board features prominent figures like Mohsen Mahgoub, Mohamed ElSewedy, Salma ElSaidy, Ayman Korra, Ahmed Shalaby, and Sohair Awad.
Sequence Ventures’ ambitious fundraising target reflects their confidence in the potential of Egyptian deep technology startups and their commitment to fostering the country’s innovation ecosystem.
