Sawari Ventures, a prominent venture capital firm based in Egypt, is setting up to launch its second fund, Sawari Ventures II. This new fund is set to raise a substantial $200 million and will expand its investment focus beyond North Africa to include Kenya and West African markets.

This new fund, Sawari Ventures II, builds upon the firm’s previous announcement in February 2024, where it committed to investing $150 million in Egyptian startups.

A Dual-Focus Approach

Sawari Ventures II is comprised of two distinct components:

1. A Local Capital-Focused Egypt Fund: This fund will primarily invest in Egyptian startups, allocating approximately 70% of its capital, or $140 million, to promising ventures. The focus will be on Series A and B stage investments.
2. An International Fund: This fund will target foreign investors and development finance institutions. By attracting international capital, Sawari Ventures aims to encourage collaboration and support the growth of African startups.

Investment Priorities

Sawari Ventures plans to primarily focus on investing in startups at the Series A and Series B stages. These are companies that have demonstrated early-stage success and are seeking larger rounds of funding to fuel their growth.

Additionally, the firm will allocate a smaller portion of the fund to seed-stage investments, supporting promising startups in their early stages of development.

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Prioritising Key Sectors

Sawari Ventures is particularly interested in strengthening its investments in the financial technology and deep technology sectors. These sectors have witnessed significant growth and innovation in recent years, and Sawari Ventures believes they hold tremendous potential for future development.

Sawari Ventures II will prioritise investments in the following sectors:

• Fintech: Leveraging technology to transform financial services.
• Deep Tech: Investing in cutting-edge technologies with the potential for significant impact.
• Digital Education: Supporting innovative solutions in the education sector.
• Health Tech: Advancing healthcare through technology.
• Climate Tech: Investing in companies addressing climate change and sustainability.
• Agricultural Technology: Supporting agricultural innovation and improving food security.

These sectors are experiencing rapid advancements and offer promising opportunities for investment.

Bpifrance’s Expansion into Egypt

Bpifrance’s entry into Egypt is a key component of this partnership. The French venture capital firm aims to create a seamless exchange of innovation, talent, and capital between France, Africa, and the Middle East.

By establishing operations in Egypt, Bpifrance can provide valuable support to French companies seeking to expand into African markets and to African companies looking to establish research and development (R&D) operations in France.

Unlocking Opportunities for Growth

The partnership between Sawari Ventures and Bpifrance offers numerous benefits for both French and African companies. French companies can leverage Bpifrance’s expertise and network to gain a foothold in the African market, while African companies can benefit from Bpifrance’s access to capital and resources in France. This collaboration has the potential to unlock new opportunities for growth and innovation on both sides of the Mediterranean.

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A Catalyst for Cross-Border Collaboration

The partnership between Sawari Ventures and Bpifrance serves as a catalyst for cross-border collaboration. By facilitating the exchange of ideas, talent, and capital, this collaboration can help to bridge the gap between Africa and the Middle East.

This is particularly important in today’s interconnected world, where innovation and collaboration are essential for driving economic growth and development.

A Promising Future for African Startups

Sawari Ventures has established itself as a leading venture capital firm, supporting innovative startups across the MENA region. With a strong presence in Egypt, Sawari Ventures Egypt focuses on investing in companies that drive growth and technological advancements in various sectors.

For those interested in learning more about the firm and its portfolio, the Sawari Ventures website provides comprehensive information about their mission, investment approach, and the promising companies they back.

The launch of Sawari Ventures II is a positive sign for the African startup ecosystem. By expanding its investment focus and securing significant funding, the firm is set to play a key role in supporting the growth and development of innovative African companies.

With its focus on emerging sectors and strategic partnerships, Sawari Ventures is well-positioned to drive positive change and create value across the continent.