Cairo-based venture capital firm Foundation Ventures has announced the first close of its second fund, FVFII, with $25 million in committed capital. The fund aims to support early-stage and growth-stage startups in Egypt, with additional allocations for promising ventures across Africa. Backed by prominent investors, including the Egyptian-American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Egyptian businessman Onsi Sawiris, the fund underscores a shared commitment to fostering innovation, scaling startups, and strengthening Egypt’s entrepreneurial ecosystem.

A Catalyst for Innovation and Growth

Foundation Ventures, founded in 2018 by Mazen Nadim, Omar Barakat, and Ziyad Hamdy, has established itself as a key player in Egypt’s venture capital landscape. The firm’s latest fund, FVFII, is designed to empower startups from ideation to regional and global expansion. By providing not only capital but also strategic support, Foundation Ventures aims to position Egypt as a hub for innovation and a launchpad for startups seeking to scale across Africa and beyond.

Mazen Nadim, Managing Partner at Foundation Ventures, highlighted the unique advantages of Egypt’s market dynamics. “Egypt is home to exceptional tech talent and one of the largest economies in the Middle East and Africa. The devaluation of the local currency presents a rare opportunity for startups to leverage top-tier talent and use Egypt as a cost-effective testing ground for innovation,” he said. This environment enables startups to refine their business models locally before expanding to regional and global markets.

Investor Confidence and Strategic Partnerships

The successful first close of FVFII reflects strong investor confidence in Foundation Ventures’ vision and capabilities. The Egyptian-American Enterprise Fund (EAEF), a key investor, has emphasized its commitment to supporting innovative entrepreneurs who are shaping the future of the region. Yasmin Gabriel, Investment Director at EAEF, expressed enthusiasm about the partnership, stating, “We are excited to collaborate with Foundation Ventures and have great confidence in their talented leadership team. This partnership reinforces our commitment to supporting visionary entrepreneurs who are driving economic growth.”

MSMEDA, another significant investor, has committed $3 million to the fund. This investment aligns with MSMEDA’s broader strategy to support high-growth startups and bolster Egypt’s entrepreneurial landscape. The involvement of Onsi Sawiris, a prominent Egyptian businessman, further underscores the fund’s credibility and the potential it holds for transforming Egypt’s startup ecosystem.

Resilience in a Challenging Market

Nadim also pointed to the resilience of Egypt’s startup ecosystem, which has weathered recent economic challenges and market corrections. “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 new generation of founders, shaped by economic challenges, is expected to approach business-building with a heightened emphasis on sustainability and operational excellence.

The fund’s focus on capital efficiency and adaptability reflects a broader trend in the global startup landscape, where investors are increasingly prioritizing sustainable growth over rapid scaling. By supporting startups that demonstrate these qualities, Foundation Ventures aims to nurture the next wave of market leaders capable of driving long-term economic growth.

Beyond Capital: Strategic Support for Startups

Foundation Ventures distinguishes itself by offering more than just financial investment. The firm provides startups with access to Egypt’s largest corporate networks, enabling them to test and refine their business models in real market environments. This hands-on approach creates a foundation for startups to thrive locally and scale regionally.

By connecting founders with strategic business partners, Foundation Ventures helps startups navigate the complexities of scaling operations and entering new markets. This support is particularly valuable for early-stage startups, which often face significant challenges in securing partnerships and gaining market traction.

A Vision for the Future

With the launch of FVFII, Foundation Ventures is doubling down on its mission to strengthen Egypt’s venture capital ecosystem and empower local founders. The fund’s focus on innovation, scalability, and sustainability aligns with broader efforts to position Egypt as a leader in the Middle East and Africa’s tech and startup sectors.

As Egypt’s startup ecosystem continues to gain momentum, driven by a wealth of tech talent and a growing economy, initiatives like FVFII play a critical role in unlocking the country’s entrepreneurial potential. By supporting high-growth startups and fostering a culture of innovation, Foundation Ventures is contributing to the development of a robust and dynamic entrepreneurial ecosystem that can drive economic growth and create lasting impact.

The launch of Foundation Ventures’ $25 million FVFII fund marks a significant milestone in Egypt’s entrepreneurial journey. Backed by prominent investors and guided by a vision to empower startups, the fund is poised to fuel innovation, support scalable ventures, and strengthen Egypt’s position as a regional leader in technology and entrepreneurship. As the country’s startup ecosystem continues to evolve, initiatives like FVFII will play a pivotal role in shaping the future of Egypt’s economy and its contribution to the global innovation landscape.