Algebra Ventures Seeks to Strengthen Its Market Footprint in Morocco

Rabat – Algebra Ventures, a leading venture capital firm, is setting eyes on Morocco, with ambitious plans to become part of the country’s flourishing startup ecosystem.

Building on its success in Egypt, Algebra Ventures is now setting its sights on Morocco, eager to tap into the country’s robust talent pool and promising startup landscape.

Founded in 2016, Algebra Ventures entered the Egyptian market at a time when venture capital was virtually nonexistent.

“We focus on supporting both bold and resilient entrepreneurs that are changing the world around them, addressing many of the problems and challenges that are in Egypt and Africa, elsewhere,” Algebra’s Managing Partner Karim Hussein told Morocco World News in an interview.

Their first fund of $54 million, sourced from development finance institutions (DFIs) like IFC, EBRD, Cisco, and various family offices, was a pioneering effort that invested in 21 companies.

The fund notably supported some of Egypt’s most successful startups, including Khazna, Trella, Yodawy, Mozare3, Shift EV, Dsquares, and LuckyOne.

“We don’t only support with financing, we also have connections with almost all the regional and global investors,” Hussein said, highlighting Algebra’s value beyond capital. “We’ve co-invested with many of them.”

Outlining the fund’s philosophy, Hussein explained that they provide “strategic support” because startups are “all about the team and it’s about the strength of the team that you build around you.”

With the launch of AVII, Algebra Ventures has doubled its ambition and capital, securing investments from both returning LPs and new backers like BII, FMO, and DGGF.

While AVII continues to focus primarily on Egypt, it also aims to explore opportunities in North and Sub-Saharan Africa, reflecting a broader investment thesis that includes venturing beyond Egypt’s borders.

Earlier this year, Algebra’s partners embarked on exploratory trips to Kenya and Morocco. The visits were crucial for meeting with local and international investors, ecosystem builders, startups, pipeline companies, governmental organizations, and existing portfolio companies.

Morocco, in particular, has captured Algebra’s attention. The country boasts a wealth of well-educated and technically skilled talent, which aligns perfectly with Algebra’s criteria for investment.

The Moroccan government’s efforts to bolster its digital economy infrastructure further enhance the appeal of the market. With initiatives aimed at creating a conducive environment for tech startups, Morocco is well-positioned to become a significant hub for innovation in the region.

“We saw a very promising opportunity in Morocco. Tremendous upside potential, very strong founders, amazing talent, and quite strong partners to work with. So we are very excited,” Algebra Ventures’s second managing partner Tarek Asaad said in an interview with MWN.

Algebra Ventures is no stranger to success. Its experienced team has invested in over 100 companies in the past 15 years, earning a reputation as one of the most seasoned venture investors in the Middle East and Africa.

However, venturing into new markets always comes with challenges. “We understand that we don’t know this market as well as we know the Egyptian market,” Asaad conceded.

More than just providing capital, Algebra offers a comprehensive growth platform for startups, including strategic guidance, access to co-investors, and talent development.

The firm’s strategic expansion into Morocco is already bearing fruit. Algebra has made two notable investments in the country, including a landmark deal with YoLa Fresh, which secured the highest fundraising round Morocco has seen in the past five years. This investment was made in collaboration with Morocco-based Al Mada Ventures, E3, and FMO.

In 2023 alone, Algebra invested over $10 million in 10 companies, including two in Morocco. The firm plans to increase its investment in 2024, targeting $20 million. This continued commitment underscores Algebra’s confidence in the potential of North Africa’s tech ecosystem.