Foundation Ventures Launches Second VC Fund

Cairo-based venture capital firm Foundation Ventures has launched a new $25 million fund, FVFII, aimed at supporting startups in Egypt with additional allocations for expansion across Africa. The fund seeks to fuel innovation and help companies scale from ideation to regional and global markets.

The fund has attracted investments from key players, including the Egyptian-American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Egyptian businessman Onsi Sawiris. Notably, MSMEDA has committed $3 million, aligning with its broader strategy to support high-growth startups and strengthen Egypt’s entrepreneurial ecosystem. This investment further reinforces confidence in Foundation Ventures’ ability to nurture the next generation of market leaders.

Eg ypt’s startup ecosystem is rapidly gaining momentum, fueled by a strong pool of tech talent and a growing economy. Mazen Nadim, Managing Partner at Foundation Ventures, highlighted the country’s competitive advantages: “Egypt is home to exceptional tech talent and one of the largest economies in the Middle East and Africa. The devaluation of the local currency also presents a rare opportunity for startups to leverage top-tier talent and use Egypt as a cost-effective testing ground for innovation.”

He also noted the resilience of Egypt’s startup landscape, emphasizing that recent market corrections have strengthened well-managed companies while filtering out weaker ones. “This new generation of founders, shaped by economic challenges, is prioritizing capital efficiency and adaptability. Their focus on sustainability and operational excellence will define the next wave of successful startups.”

In addition to funding, Foundation Ventures provides startups with access to Egypt’s largest corporate networks, serving as a launchpad for scaling locally before expanding regionally. The firm connects founders with strategic business partners, enabling them to test and refine their models in real market conditions.

Yasmin Gabriel, Investment Director at EAEF, expressed strong confidence in Foundation Ventures’ leadership and mission:

“We are excited to collaborate with Foundation Ventures and have great confidence in their talented leadership team. This partnership reinforces our commitment to supporting visionary entrepreneurs who are shaping the future of the region.”

With the launch of FVFII, Foundation Ventures is doubling down on its mission to strengthen Egypt’s venture capital ecosystem, empower local founders, and drive long-term economic growth.