Egypt-based venture capital firm Sawari Ventures is gearing up to launch its second fund, Sawari Ventures II, in early 2025. With a target of raising $200 million, this fund aims to build on the success of the firm’s first fund and expand its reach into new sectors and regions, according to Launch Base Africa.
The new fund will comprise two key components: an Egypt-focused fund to mobilize local capital and an international fund aimed at attracting foreign investors and development finance institutions. This dual structure will support startups across Egypt, Tunisia, Morocco, Kenya, and West Africa, emphasizing the firm’s commitment to nurturing entrepreneurship in these regions.
Of the total $200 million, approximately 70%, or $140 million, will be allocated to Egyptian startups over the next four to five years. Sawari Ventures plans to target startups at the Series A and B stages, with some portion of the fund reserved for seed-stage investments, allowing the firm to nurture early-stage ventures while also supporting more established companies as they scale.
Sawari Ventures II will focus heavily on sectors that are positioned for significant growth. These include:
– Financial Technology
– Deep Technology
– Digital Education
– Health Technology
– Climate Technology
– Agricultural Technology
The firm’s strategy is to diversify its portfolio by tapping into these high-growth sectors, which are seen as key areas for driving economic development and innovation across Africa.
One of Sawari Ventures’ most strategic moves has been its partnership with Bpifrance, France’s largest venture capital firm. Bpifrance’s recent entry into the Egyptian market aims to facilitate greater collaboration between Africa, the Middle East, and France, particularly in areas like innovation, talent exchange, and access to finance.
This partnership is expected to create new opportunities for both French and African companies. It will help French firms looking to enter African markets while offering African startups the chance to establish research and development (R&D) operations in France. The collaboration between Sawari Ventures and Bpifrance is seen as a crucial step in easing access to capital and fostering innovation on both sides.
Sawari Ventures’ first fund has already made significant strides in supporting Egyptian startups, and the second fund is poised to expand this success across North and West Africa. By focusing on high-growth sectors and promoting cross-border partnerships, Sawari Ventures hopes to play a pivotal role in shaping the future of innovation in Africa.
As the firm sets its sights on launching Sawari Ventures II, it is clear that the VC firm is committed to positioning itself as a major player in Africa’s venture capital landscape, with the goal of fostering sustainable economic growth and empowering African entrepreneurs.
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