Egypt-based venture capital (VC) firm Sawari Ventures is preparing to launch its second fund, “Sawari Ventures II,” in early 2025, with a target of raising $200 million. Sawari Ventures II will build on the success of the firm’s first fund, expanding into new sectors and regions.
The new fund will consist of two components. It will include an Egypt-focused fund to mobilise local capital and an international fund targeting foreign investors and development finance institutions to support startups across Egypt, Tunisia, Morocco, Kenya, and West Africa. 70% of the total $200 million, or $140 million, will be allocated to Egyptian startups over the next four to five years.
The firm plans to primarily target startups at the Series A and Series B stages, with a smaller portion allocated to seed-stage investments. In particular, Sawari Ventures is keen to bolster its investments in financial technology and deep technology sectors while expanding into digital education, health technology, climate technology, and agricultural technology.
Sawari Ventures plans to invest heavily in sectors such as financial technology, deep technology, digital education, health technology, climate technology, and agricultural technology. These areas are in alignment with the firm’s plans to diversify its portfolio and tap into sectors where it sees potential for significant growth and impact. One of the firm’s recent moves includes a partnership with Bpifrance, France’s largest venture capital firm.
The partnership, which has led to Bpifrance establishing operations in Egypt, aims to foster greater collaboration between Africa, the Middle East, and France, particularly in the areas of innovation, talent exchange, and access to finance.
Bpifrance’s entry into the Egyptian market is part of a larger vision to create opportunities for French companies looking to enter African markets and African firms aiming to establish research and development (R&D) operations in France. This collaboration is expected to ease access to capital for startups on both sides. The partnership aims to improve access to finance for French companies seeking to expand into African markets and for African companies looking to establish research and development (R&D) operations in France.
Sawari Ventures’ first fund has already achieved notable success in supporting Egyptian startups, and the second fund is seen as a step toward expanding its regional footprint while strengthening ties between Africa and international markets.
“Through this fund, we seek to build on the successes of our first fund while expanding into new sectors and regions where we see tremendous opportunities for growth and impact.” a representative from Sawari ventures stated.
By targeting high-growth sectors and fostering cross-border partnerships, Sawari Ventures hopes to play a pivotal role in shaping the future of innovation in Africa.
As the firm gears up for the official launch of Sawari Ventures II, the African startup ecosystem is set to benefit from increased investment in key areas driving technological and economic advancement. In February 2024, the VC firm announced plans to launch a $150 million investment fund to support Egyptian startups.
