Grace Ashiru
Egypt-based VC firm Sawari Ventures is gearing up to launch its second fund, “Sawari Ventures II,” in early 2025, aiming to raise $200 million, according to Launch Base Africa.
Sawari Ventures II will build on the success of the firm’s first fund, broadening its reach into new sectors and regions. The new fund will consist of two main components: one focused on early-stage startups and another targeting later-stage investments across Africa.
The new fund will consist of two components: an Egypt-focused fund to mobilize local capital and an international fund aimed at attracting foreign investors and development finance institutions. This will support startups across Egypt, Tunisia, Morocco, Kenya, and West Africa.
Of the total $200 million, around 70%, or $140 million, will be allocated to Egyptian startups over the next four to five years.
The firm will primarily focus the fund on startups in their Series A and B stages, with a portion set aside for seed-stage investments.
Sawari Ventures plans to make significant investments in sectors such as financial technology, deep technology, digital education, health technology, climate technology, and agricultural technology.
These sectors align with Sawari Ventures’ strategy to diversify its portfolio and tap into areas with high potential for growth and impact.
One of Sawari Ventures’ recent moves includes a partnership with Bpifrance, France’s largest venture capital firm.
The partnership, which has enabled Bpifrance to establish operations in Egypt, aims to foster greater collaboration between Africa, the Middle East, and France, focusing on innovation, talent exchange, and access to finance.
Bpifrance’s entry into the Egyptian market is part of a broader vision to create opportunities for French companies seeking to enter African markets and for African firms looking to establish research and development (R&D) operations in France. This collaboration is anticipated to facilitate access to capital for startups on both sides.
Sawari Ventures’ first fund has already seen notable success in supporting Egyptian startups, and the second fund is viewed as a key step toward expanding its regional presence while strengthening ties between Africa and international markets.
By targeting high-growth sectors and fostering cross-border partnerships, Sawari Ventures aims to play a pivotal role in shaping the future of innovation in Africa.
As the firm prepares for the official launch of Sawari Ventures II, the African startup ecosystem is poised to benefit from increased investment in key areas that drive technological and economic advancement.
In February 2024, the VC firm announced its plans to launch a $150 million investment fund aimed at supporting Egyptian startups.
