US computer equipment maker Cisco has committed $7m to a $30m Lebanon Growth Capital Fund managed by Riyada Enterprise Development (Red), the $650m venture capital unit of asset manager Abraaj Group.
SMEs underpin the economies of the region, accounting for about 70% of employment and some 30 % of gross domestic product. Fadi Moubarak, general manager of Cisco Levant, said: "Cisco’s investment in the Lebanon Growth Capital Fund demonstrates tangible support of the SMEs sector and contribution to help create sustainable economic development by stimulating innovation and job creation in Lebanon."
Abraaj and the state-backed European Investment Bank, which invested $6.75m, have also committed to the fund, which has an allocation of up to 10% to invest in earlier stage companies with committed entrepreneurs and validated market needs, but with partially developed products or services that need funding and strategic support to approach cash flow positive status.
The fund is looking to back 15 small and medium-sized enterprises (SMEs) and is managed by a team based in Beirut, Lebanon, supported by the broader Red platform.
Abraaj Capital established Red in 2009 as an independent platform of more than 30 people nvesting in the region, including funds in North Africa, Egypt, Jordan and Palestine.