Germany through its GIZ Egypt office has unveiled a €100 million ($120 million) funding initiative called “VC University” in collaboration with the Egyptian Micro, Small and Medium Enterprises Development Agency (MSMEDA), Endure Finance, and Changelabs, aimed at first-time venture capital (VC) funds.
“In addition to cash, the program aims to educate early-stage fund managers on how to raise capital and deal with problems that might arise down the road,” Ali Saleh, head of young enterprise finance, said.
Here Is What You Need To Know
- The year-long program will provide mentorship to aspiring fund managers as well as access to various LPs from around the world. MSMEDA, for its part, will provide technical assistance to a small group of fund managers.
- Lack of access to early-stage funding is still a major issue for Egyptian startups, as well as those in the broader Middle East and North Africa (MENA) region. According to Saleh, the initiative aims to increase cash injection into Egyptian startups, especially those in their early stages, by raising cash flow into the risk capital ecosystem.
- Early-stage venture capital funds, like early-stage startups, face difficulties in raising capital and are considered to be underserved. The newly launched initiative aims to close the gap in this region.
“There’s a lot of programmes out there that are aimed at startups, yet the VC funds are left behind. We have seen that there’s a gap there that needs to be filled,” said Saleh
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Here Is How To Apply
The VC University program is open to funds based in Egypt as well as those based elsewhere in Mena who have a strong mandate to invest in Egyptian startups.
It plans to hire three to four fund managers, each of whom will be paid €25–30 million.
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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