Startups in Egypt have a new fund! Cairo Angels has gone VC, although still retaining its “angel structure”. The network of angel investors has launched a new $3 million micro fund to invest in early stage startups’ seed and pre-Series A in the Middle East and Africa region. One of the leading and oldest angel networks of the region, Cairo Angels has been actively investing in Egyptian startups.
“This is an exciting time for Cairo Angels as we embark on this new venture to create our first fund. Since we’ve been pioneers in the industry, we are confident that this fund will bring a lot of value to investors, startups, and the community. This fund will create a unique opportunity for people to have access to innovative ideas at an affordable initial investment that is available for everyone,” Nader Aboushadi, a member of the fund’s board, said.
Here Is What You Need To Know
- According to Zeina Mandour, the general manager of Cairo Angels, the fund has already secured a few commitments and expects to close in the first quarter of 2021.
- It is aiming to raise USD 1.2–3 million and will deploy the capital immediately after closing.
- VC funds usually monetize their funds by charging a management fee, which is 1–2.5% per year in the region, and by earning a carry on exits, which is normally 20%. However, Cairo Angels is bringing something different. No management fee! It is only hoping that it is incentivized by carry-on successful exits.
“We are always looking at ways to bring new ideas and innovation to our region, and launching the fund is the next step in our evolution. We have enjoyed great success investing in this space, and we now want to democratize access to this exciting asset class to active and passive investors alike.”
“Our new model will bring something different to the market and provide much-needed capital to a clear gap in the funding life cycle of startups in our region,” Aly El Shalakany, a member of the newly launched fund’s investment committee, said.
Read also: Egypt ’s VC Alex Angels Launches A $6 Million Early-stage Fund To Back Egyptian Startups
What Happens To The Old Cairo Angels?
Still intact is the best answer. Cairo Angels will continue to operate its angel network as well as continue to achieve the network’s goals of investing in pre-seed and seed-stage opportunities in Egypt. The new fund will however focus on seed and pre-Series A opportunities across the Middle East and Africa, with a major focus on Egypt and Saudi Arabia. The size of the fund is quite small and so would, probably, only assist startups close their rounds.
Cairo Angels seems to be emulating Alexandria Angels (more commonly known as Alex Angels). The angel network, in April this year launched Alex Angels Fund, a $6.3 million (EGP 100 million) fund to invest in Egyptian startups. The announcement was first made during a virtual investor masterclass held by Alex Angels and few other entities.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer