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Egyptian startups to receive $220m from foreign funds: DisrupTech Ventures – Dailynewsegypt

DisrupTech Ventures, a venture capital firm founded by Mohamed Okasha, revealed that foreign private investment funds from Africa and the Gulf are expected to invest $220m in Egyptian startups over the next two years, based on international reports.

Okasha made this statement at the “Communications and Technology Session and Opportunities to Attract Foreign Investment” that was part of the ninth annual conference for CEOs. He discussed the opportunities for investors and startups in the Egyptian market and said that challenging times are the best times for investment. He added that the Egyptian state’s support for digital transformation and financial inclusion projects, as well as the lack of foreign investors in the local startup scene, create a great opportunity for local investors to inject funds without overvaluing the companies.

Okasha also urged Egyptian startups to prepare for receiving new funds by reorganizing internally and exploring new export markets, not just relying on the domestic market. He said that there are Gulf and European markets that are eager for Egyptian products developed by skilled and talented minds in emerging fields such as generative artificial intelligence and data analysis.

He highlighted that Egypt is one of the top three countries in Africa for investment, after South Africa and Nigeria, due to its large youth population (75% under 40), its telecommunications infrastructure, and its affordable internet prices.

Okasha attributed the decline in the venture capital market to the rise in global inflation rates caused by the COVID-19 pandemic in 2020 and the Russo-Ukrainian war, which led to higher interest rates and a shift in investor preferences to sectors that offer fixed returns. He also noted that the repricing of large companies in the market affected all entities that use the US dollar for investment due to the depreciation of the local currency against the foreign currency.