Networking technology provider Cisco has contributed to the $40m first close of the first fund to be raised by Egypt-based venture capital firm Algebra Ventures, Zawya has reported.
Algebra intends to invest between $500,000 and $4m in each of up to 25 startups operating in areas such as technology intellectual property, financial technology, industry-focused platforms, e-commerce and the consumer internet.
Cisco invested in the fund through its corporate venturing subsidiary, Cisco Investments. Algebra aims to reach a final close of $50m for the fund.
The fund has also secured capital from Egyptian-American Enterprise Fund, which provided $10m, as well as the multilateral European Bank for Reconstruction and Development and World Bank subsidiary International Finance Corporation.
Tarek Assaad, managing partner of Algebra Ventures, said: “In the midst of all the challenges our economy is currently battling with, the belief that technology and innovation are critical to progress is our main driving force.
“There has been a dry up in funding recently, and this new investment comes at a very important time to revitalises growth in the sector. The new Algebra Ventures fund will provide much-needed capital to allow startups to accelerate their growth and build lasting value.”