Cairo-Based Foundation Ventures Closes US$25 Million Fund

Cairo-based venture capital firm Foundation Ventures has completed the first close of its US$25 million fund called FVFII.

This fund aims to foster innovation and bolster Egypt’s startup ecosystem by supporting startups from early-stage growth to regional and international expansion. Additionally, part of the capital will be allocated to investing in high-potential startups across Africa. 

The fund featured investment from notable investors, including the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Egyptian businessman Onsi Sawiris. Their support underscores a shared commitment to cultivating a dynamic entrepreneurial ecosystem in Egypt and beyond, fostering transformative businesses, and positioning local innovation on the global stage. 

Founded in 2018 by Mazen Nadim, Omar Barakat, and Ziyad Hamdy, Foundation Ventures invests in and accelerates the growth of early-stage and expanding startups. In addition to financial backing, the venture offers its portfolio companies access to an extensive enterprise network to foster local growth while enabling startups to expand regionally. 

In an interview with Inc. Arabia, Katherine Kamel, an associate at Foundation Ventures, told us that this new fund builds on the firm’s dedication to supporting the Egyptian startup ecosystem. “This new fund is a continuation of our commitment to investing in resilient and visionary founders in Egypt and supporting them with both the capital and expertise they need to scale their businesses,” she said. “Taking learnings from Fund I, we will continue to invest in founders from day 0 and add-value beyond capital, including connecting them to Egypt’s largest enterprise network and providing hands-on operational, technical, and strategic support.” 

Kamel highlighted the significant trends shaping the entrepreneurial landscape in Egypt, attributing them to government support and the rapid adoption of digital technologies among businesses and consumers. She expressed that Foundation Ventures is excited about investing in key sectors such as financial inclusion — particularly small and medium enterprise (SME) lending and expanding financial access for the unbanked — along with quality healthcare and education, sustainable agriculture, and scalable supply chain solutions. 

Additionally, Kamel acknowledged that while Egypt serves as a cost-effective launchpad for startups to validate their concepts before expanding into other markets, scaling beyond the country comes with its own set of challenges. “Key challenges with expansion include building strong teams and managing operations across markets while remaining competitive," she said. "This is where our network of enterprise partners comes in to act as advisors, as well as our close relationships with regional investors, who can provide the strategic guidance and capital to partner with our portfolio companies as they expand." 

Pictured on image: Katherine Kamel. Image courtesy Foundation Ventures.