Cairo-based venture capital firm Foundation Ventures has raised $25 million through its second fund – FVFII – to support the country’s early and growth-stage startups.
The firm’s new fund has attracted investors, including the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and businessman Onsi Sawiris.
The FVFII fund targets early- and growth-stage Egyptian startups, with a focus on regional and global expansion. The fund will primarily invest in Egypt but also earmark capital for high-potential startups across the African continent.
The fund aims to support ventures with a ticket size of initial investment between $750,000 and $1 million.
Furthermore, it focuses on theme-driven opportunities rather than specific sectors while the primary focus will be in Egypt, with secondary investments across Africa.
Foundation Ventures made its market debut in 2019 with the launch of its inaugural fund, FVF1 Vintage.
The company is led by Mazen Nadim, managing partner, alongside partners Omar Barakat and Ziyad Hamdy. Additionally, Foundation Ventures has a strategic partnership with HOF, a US-based VC firm managing over $1.5 billion in assets under management (AUM), which serves as a General Partner.
Notable startups in Foundation Ventures’ portfolio include Rabbit, Flextock, Swypex, Aydi, Trella, and Abwaab.
Egypt’s startups
“The devalued currency presents a unique opportunity for startups to leverage Egypt’s high-caliber tech talent and position the country as a cost-efficient testing ground,” said Nadim.
In 2024, Egypt has attracted $334 million in total investments across 84 deals with the fintech sector receiving the largest share, $237 million, across 17 fintech startups, according to the annual report from Wamda and Digital Digest.
Logistics sector followed, securing only $23.5 million across six deals, while the e-commerce sector raised $22.5 million through seven startups.
Further, the majority of capital injected in Egyptian startups came from local investors, followed by Saudi Investors.
In Early 2025, Egyptian startup Simplex, specializing in CNC machine manufacturing, has secured $13 million in funding from Saudi Arabia’s National Industrial Development Center.
In September 2024, Egypt-based business-to-business (B2B) payment platform Settle Payments secured $2 million in a pre-seed funding round.
That same month, Egypt-based fintech startup Paymob raised $22 million in a Series B extension round, bringing its total Series B funding to $72 million.
Source: Forbes Middle East
