Fund aims to invest in over 25 technology startups, where ticket sizes will range from $500,000 to $4 million.

Jojo Puthuparampil is a business news writer for Inc. Arabia.

Egyptian venture fund Algebra Ventures has made its first close at $40 million, it said in a statement. The fund, which was launched in June, plans to reach a final close at $50 million.

It aims to invest in over 25 technology startups, where ticket sizes will range from $500,000 to $4 million. Its investments will span angel, Series A and Series B investments.

Algebra Ventures’ managing partner Tarek Assaad, said that technological innovation is critical for progress against the economic challenges Egypt has been facing. “There has been a dry-up in funding recently, and this investment comes at an important time to revitalize growth in the sector,” he said.

The new fund will provide much-needed capital to allow startups to accelerate growth and build lasting value, he said.

Algebra Ventures is led by managing partners Tarek Assaad, Ziad Mokhtar and Khaled Ismail. Other investors include Cisco Investments and the European Bank for Reconstruction and Development (EBRD).

Besides them, the International Finance Corporation (IFC) and Egyptian-American Enterprise Fund (EAEF) committed $10 million in the fund.

In fact, Egyptian-American Enterprise Fund has been an active investor in the Egyptian startup space.

Recently, EAEF invested 12 million Egyptian pounds ($762,000) in Egypt-based Smartcare Medical Services, after investing $1.2 million in the same company earlier.

In the same month, it said it will be increasing its investments in the Egyptian market to nearly $100 million.

Besides the introduction of new financial products, EAEF said that it wants to improve corporate governance, enhance operation frameworks and set up skilled management teams. EAEF will also try to get additional capital from international investors like USAID to support the growth and improvement of firms despite a difficult economic climate.

EAEF targets sectors that are capable of creating employment opportunities and social values for Egyptians, such as manufacturing, logistics, food and beverage, renewable energy, pharmaceuticals, and financial services, which have a high potential for growth.