Egypt-based VC firm, Foundation Ventures, has closed a $25 million fund, ‘FVFII.’ A portion of the capital will be allocated to investing in promising African startups.
The fund has attracted investors such as the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Onsi Sawiris.
“Egypt boasts one of the region’s most talented tech pools and one of the largest economies in the Middle East and Africa. The devalued currency offers startups a rare chance to harness superior tech talent and use Egypt as a cost-efficient testbed,” said Mazen Nadim, Managing Partner at Foundation Ventures. “This enables startups to refine their business models locally and emerge as competitive players on the regional and global stages.”
Nadim also highlighted the resilience emerging from Egypt’s evolving market landscape: “The recent market correction has acted as a filter, spotlighting strong, well-managed companies. Founders who prioritised capital efficiency and adaptability have emerged stronger. Shaped by the challenges of the downturn, this new generation of founders is expected to approach business-building with a heightened emphasis on sustainability and operational efficiency.”
Beyond capital investment, Foundation Ventures provides its portfolio companies with access to Egypt’s largest enterprise network. This hands-on approach creates a foundation for startups to thrive locally and scale regionally.
“We are excited to partner with Foundation Ventures and confident in the exceptional talent and vision of their team. 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,” commented Yasmine Ghobrial, Chief Investment Officer at the Egyptian-American Enterprise Fund.
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