Foundation Ventures, an Egyptian venture capital firm, has announced the first close of its second fund, FVFII, securing $25mn to invest in early and growth-stage technology startups. The fund aims to bolster Egypt’s burgeoning entrepreneurial ecosystem and support promising ventures across Africa.
The Cairo-based firm, founded in 2018 by Mazen Nadim, Omar Barakat, and Ziyad Hamdy, has attracted investment from notable backers including the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and prominent Egyptian businessman Onsi Sawiris.
Foundation Ventures plans to deploy the capital to support startups from their early stages through to regional and potentially global expansion. A portion of the fund will also be allocated to investments in promising African startups beyond Egypt.
Mazen Nadim, Managing Partner at Foundation Ventures, highlighted Egypt’s large tech talent pool and its position as one of the largest economies in the Middle East and Africa. He also pointed to the current devaluation of the Egyptian currency as creating an opportunity for start-ups. “The devalued currency offers start-ups a rare chance to harness superior tech talent and use Egypt as a cost-efficient testbed,” Mr. Nadim said. He added that this allows companies to “refine their business models locally and emerge as competitive players on the regional and global stages.”
Mr. Nadim also noted the impact of recent market corrections on the Egyptian start-up landscape. He suggested that the downturn had served as a filter, highlighting “strong, well-managed companies” and fostering a new generation of founders with a focus on “sustainability and operational efficiency.”
Beyond financial investment, Foundation Ventures offers portfolio companies access to a network of established businesses in Egypt. The firm emphasizes a hands-on approach, aiming to provide start-ups with the resources and connections needed to scale both locally and regionally.
Yasmine Ghobrial, Chief Investment Officer at the EAEF, expressed confidence in Foundation Ventures’ team and strategy. “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 said.
The successful first close of FVFII signals continued investor interest in the Egyptian and African technology sectors, despite recent global economic headwinds. The fund’s focus on early-stage ventures and its commitment to providing operational support suggest a targeted approach to nurturing the development of the next generation of successful African tech companies.