Egypt’s startup ecosystem just received a major boost as Foundation Ventures, a Cairo-based venture capital firm, successfully closed the first round of its $25 million fund, FVFII. The fund aims to nurture Egypt’s entrepreneurial landscape, providing early-stage startups with the capital and support needed to scale both regionally and globally. Additionally, a portion of the fund will be directed toward promising African startups, reinforcing Egypt’s role as a growing hub for innovation across the continent.
The new fund has attracted high-profile investors, including the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and renowned investor Onsi Sawiris. Their backing signals a shared commitment to building disruptive businesses, strengthening Egypt’s venture capital sector, and propelling local innovation onto the global stage.
Why Egypt is Poised for Startup Growth
With one of the largest economies in the Middle East and Africa, Egypt has positioned itself as an attractive market for startups and investors. Mazen Nadim, Managing Partner at Foundation Ventures, emphasized that the country’s devalued currency creates a unique opportunity for startups to access top-tier tech talent at competitive costs.
“Egypt boasts one of the region’s most talented tech pools. The devalued currency offers startups a rare chance to harness superior tech talent and use Egypt as a cost-efficient testbed,” Nadim stated.
This cost advantage allows startups to refine their business models locally before expanding across regional and international markets.
A More Resilient Generation of Entrepreneurs
Despite recent economic challenges, Egypt’s startup scene has demonstrated remarkable resilience. According to Nadim, market corrections over the past few years have helped separate well-managed, capital-efficient companies from weaker players.
“The recent market correction has acted as a filter, spotlighting strong, well-managed companies. Founders who prioritized capital efficiency and adaptability have emerged stronger,” he noted.
This shift has led to a new generation of entrepreneurs who are more focused on sustainability, profitability, and operational efficiency—qualities that are essential for long-term success.
Beyond Capital: A Hands-On Approach to Scaling Startups
Unlike traditional venture capital firms that primarily provide funding, Foundation Ventures takes a hands-on approach, connecting startups with Egypt’s largest enterprise network. This strategic mentorship and business support help portfolio companies navigate challenges, scale efficiently, and establish strong foundations for regional growth.
Yasmine Ghobrial, Chief Investment Officer at the Egyptian-American Enterprise Fund (EAEF), expressed strong confidence in Foundation Ventures and its mission.
“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,” she stated.
What’s Next for Foundation Ventures?
With the first close of FVFII completed, Foundation Ventures is now poised to identify and invest in high-potential startups in Egypt and across Africa. The fund is expected to play a crucial role in supporting early-stage entrepreneurs, equipping them with not just capital but valuable industry connections and growth strategies.
