In a strategic move set to reshape the landscape of startup investments, EXITS MENA has unveiled its visionary intention to launch a groundbreaking investment fund in collaboration with the Egyptian Stock Exchange. Spearheaded by Mohamed Negati, the CEO of EXITS MENA, this pioneering initiative is slated for a 2024 debut. With a resolute focus on the technology sector, the fund aims to carve a distinct niche by acquiring shares in burgeoning startups and nascent tech enterprises. These carefully curated entities will subsequently be offered collectively on the stock exchange, accentuating the depth and diversity of the investment portfolio.
Negati shed light on the meticulous groundwork already underway to bring this aspiration to fruition. Insights shared by the CEO revealed that substantive strides have been taken in laying the foundation for the fund. Ongoing discussions with both local and international financial institutions are on the horizon, marking the initial steps toward securing the necessary funding. Amid these preparations, stringent prerequisites are being met in alignment with the rigorous standards set by the Financial Supervisory Authority, culminating in the imminent acquisition of pivotal approvals.
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Underscoring the collaborative spirit of this endeavor, Negati highlighted the comprehensive consultations being conducted with key stakeholders within the capital market ecosystem. Engagements with the Egyptian Stock Exchange, among other relevant parties, are in progress. The crux of these discussions centers on the viability of incorporating a select cohort of 7 to 10 enterprises within the fund’s framework. This deliberation lays the groundwork for seamless listing and trading of the participating companies’ shares, fostering a dynamic marketplace for investment.
Negati astutely acknowledged the potential challenges of propelling an investment fund rooted in emerging technology companies. Convincing stakeholders, both investors and companies alike, demands a strategic approach and a patient outlook. The reward, however, promises to be substantial: an open avenue for lucrative returns, an influx of diverse investors, and an infusion of fresh capital into the stock exchange ecosystem.
The CEO accentuated the growing appeal of the Egyptian market for technology-oriented companies. As the fund takes shape, it is poised to attract foreign investment inflows into Egypt’s burgeoning financial technology sector. This, in turn, will catalyze the expansion of the international investor base intrigued by the manifold opportunities presented by this promising arena.
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In a parallel development, the Egyptian Stock Exchange, under the leadership of Ramy El Dokani, has unveiled its own visionary pursuit. El Dokani, the Chairman of the exchange, disclosed preliminary studies aimed at ushering in an exchange dedicated exclusively to startup companies. With a targeted launch slated for 2025, this visionary exchange is set to capitalize on the surging interest, both domestic and global, in fortifying the startup ecosystem. The confluence of these two bold initiatives promises a profound transformation of Egypt’s financial landscape, poised to elevate the nation’s status as a thriving hub for innovation and investment.”
EXITS MENA fund
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard