The venture capital firm Sawari Ventures, based in Egypt, is gearing up to introduce its latest investment vehicle, “Sawari Ventures II,” in the early part of 2025. According to a report by Launch Base Africa, the firm has set an ambitious fundraising goal of $200 million for this second fund. Sawari Ventures II aims to capitalize on the firm’s initial fund’s achievements by broadening its investment scope to encompass additional sectors and geographical regions.
The forthcoming fund is structured with a dual focus: one segment will concentrate on Egypt, seeking to galvanize local capital, while the other segment will be oriented towards international investors, including foreign investment entities and development finance institutions. The strategy is to channel support towards startups not only in Egypt but also in Tunisia, Morocco, Kenya, and various countries in West Africa. Out of the total $200 million target, Sawari Ventures anticipates dedicating a substantial 70%—which equates to $140 million—specifically to Egyptian startups over a period of four to five years.
The investment strategy for Sawari Ventures II includes a primary focus on startups that are at the Series A and B funding stages, although a certain amount will also be earmarked for seed-stage investments. The firm is looking to make significant investments in several key sectors, including financial technology, deep technology, digital education, health technology, climate technology, and agricultural technology. These sectors have been identified by Sawari Ventures as having high growth potential and the capacity to generate a considerable impact.
A recent strategic move by Sawari Ventures has been the establishment of a partnership with Bpifrance, which is France’s most prominent venture capital entity. This partnership has facilitated Bpifrance’s expansion into Egypt, with the goal of enhancing collaboration between Africa, the Middle East, and France. The focus areas for this collaboration include innovation, talent exchange, and finance accessibility.
Bpifrance’s foray into the Egyptian market is part of a broader ambition to create pathways for French enterprises to penetrate African markets and for African companies to set up research and development (R&D) operations in France. This collaborative effort is anticipated to streamline the process of securing capital for startups in both regions.
The first fund from Sawari Ventures has already demonstrated its capacity to bolster Egyptian startups effectively. The launch of Sawari Ventures II is expected to amplify the firm’s influence across the region while reinforcing connections between Africa and the global market. With a commitment to investing in sectors that are poised for high growth and by cultivating international partnerships, Sawari Ventures is poised to become an instrumental force in driving innovation throughout Africa.
As Sawari Ventures prepares for the official rollout of its second fund, the African startup ecosystem stands to gain from an infusion of investments in critical sectors that are essential for technological progress and economic growth. This development follows the VC firm’s announcement in February 2024 of its intention to launch a $150 million investment fund dedicated to supporting Egyptian startups, further highlighting its commitment to nurturing the entrepreneurial landscape in the region.
