We have compiled a full list of top investors in Egypt with all details that every startup founder should know!
Startups’ founders are hyper-innovators who thrive on uncertainty, driven by crazy ambition, and willing to take risks to grow their startups. Investors are people or entities that execute capital with expectation for receiving financial returns and are willing to take high risk. Both investors and entrepreneurs are quite similar in how they value risk. Perhaps for entrepreneurs, some risk money but the other risk is their time. They give up their time to develop a product, and in turn, exchange that for financial support. Getting funding is one of the major milestones, recommended not required, for entrepreneurs around the world.
What do investors look for in startups?
There are no investment fixed theories or qualifications that every single investor always follows, but in most cases, it all depends on understanding the variables that make a particular project or a startup attractive for an investor than others. So always keep in mind that its hard work to get funds to your startup. For many investors, they look at your team, product, startup’s size of the market, and the stage you are at. Now let’s take a close look at types of investors in Egypt.
What are the top 2 main types of Investors in Egypt?
1. Angel Investors
Are private investors with a high net worth individual who provides financials for small businesses, startups, and entrepreneurs in exchange for ownership equity in those companies.
Fun fact: It is believed that the “angel” part first originated from Broadway theatres in the 20th century. Back then, when an individual would save a theatre production financially, when it was just about to be “killed”, people would call this person an ‘angel investor’.
2. Venture Capital
Are investment funds that investors provide to startups and small companies that have long term growth potential. Its source generally comes from well off investors, investment banks, and financial institutions.
How to ensure that you are picking the right investors in Egypt for your startup?
The amount of money that can be raised is one of the least factors when scouting an investor in Egypt for your startup.
Your investor choices can either destroy your dreams and turn them into nightmares, or breakdown numerous barriers on your flight to your full potential” Alejandro Cremades Author of The Art of Startup Fundraising & Serial Entrepreneur.
Keep in mind when you’re onboarding an investor, this institution or individual will become a strong part of your board, and it’s for a long time run. So take care of these main points when scouting investors:
- Make sure it’s the right type of investor for your stage
- Make sure the ability and availability of funds
- Reputation for funding repeat rounds of investment
- Make sure that it’s fit for your brand and culture
- The interest in being a lead investor
- How much influence does this investor have in your industry?
These 6 factors can be part of your checklist when scouting potential investors for your startup because who you will pick is absolutely critical to your success.
Now it’s time to dig deeper into these investors in Egypt
Here is a snapshot of some investors in Egypt. You can download the PDF to know their contact links as well as learn more details about each angel investor and venture capital.
1. Cairo Angels
Cairo Angels is a group of private investors in Egypt that invested $2.3 million in over 24 startups. Most companies they support are tech-based such as their choice of startups to invest in, like Instabug, Integreight, and Bosta. Find their contact details from here.
2. Sawari Ventures
Sawari Ventures is the investor for Flat6Labs, providing funding on the far side of the seed and angel level. It provides initial investments between $250,000 and $1,000,000 and aims to invest over $2 million to $5 million over the period time of an organization. you may read additional data here.
3. Algebra Ventures
Algebra Ventures is founded by Egyptian investors Ziad Mokhtar, Tarek Assaad, and Khaled Ismail. Algebra Ventures invests in technology startups that leverage innovation to rework in massive markets. They like high-growth companies, led by passionate and capable groups, that have a value proposition, which will generate important economic returns. Check their investments in Egypt from here.
4. 138 Pyramids
138 Pyramids was launched in 2012 with $10 million capital by businesswoman Neveen El Tahri, and funds startups and SMEs that managed by parent company Delta Inspire, an Egyptian investment management firm. Find more information about their investment size from here.
5. 500 Startups
500 Startups is an early-stage venture fund and seed accelerator supported in 2010 by Dave McClure and Christine Tsai. Their MENA activities are under the label “500 Falcons.” 500 Startups is a venture capital firm that is on a mission to scout and pick the world’s most competent and skillful entrepreneurs to facilitate them produce booming startups at scale and build thriving international ecosystems. Find out their previous investments from here.
6. AUC Angels
AUC Angels is the 1st university-based angel investor network within the MENA region. They are individuals who have an interest in investing in early-stage startups with growth potential that successively supports the expansion of a dynamic entrepreneurship system in Egypt. Know more about AUC Angels from here.
7. Alex Angels
Alexandria Angels was established in December 2016 by the Founder Tarek Alkady as the initial angel network in Alexandria and also the second in Egypt. They invest in promising, early-stage companies with a strong business case, within and outside Egypt. They tend to concentrate on seed-stage investment as this where the investment gap lies. Find their contact and more info here.
There’s still more to these investors
Above you can see a snapshot of 7 investors in Egypt. We have the full compilation of more than 15 investors inside this PDF that you can download for free. Inside the PDF you will find a brief about each investor, the type of investment they offer, their contact details, and whether they have certain preferences for certain industries.
Download the Biggest Compilation of Investors in Egypt PDF here.
PS: If you are searching for an incubation program too, Startups Galaxy has compiled all information you will need about all incubators in Egypt. Accelerate your startup’s journey from our Compilation of Incubators in Egypt!
As for angel investors, should you consider one?
This is something for you to decide, but we can help a bit with the facts!
What’s good about angel investment?
The good parts about angel investment are undeniable:
Less risky funding
When you are just starting out your own business, you either go for an investment or a business loan. The thing about business loans, is that you have to pay the loan back, and let’s face it, startups can succeed but they can also fail, which is something you need to set yourself up for.
Now, taking a business loan when you are not 100% sure whether your business will work or not, is a huge risk. Why? Because if it doesn’t, the bank won’t excuse you, you still have a debt to pay back.
This risk is barely there with investors, because they know what they signed up for; they know they can fail or succeed, and they expect both.
You don’t have to pay it back
It is an investment not a loan, so you don’t have to pay it back, or at least not directly. An investment comes in exchange of equity or a specific percentage of ROI, but never as ‘pay me back now what I invested in you’.
Investors are more patient
A loan has a deadline, and banks won’t understand the idea that you’re still growing and working on paying the loan back. Investors, however, know how these things can take time and won’t pressure you, because they expect results and they know how the situation is.
Investors are good mentors
Your investors are usually business people who know what they are doing, so not only are they your funding source, but also, they can provide you with mentorship and advice whenever you need it. Investors are a great opportunity for you to broaden your horizon.
It gives you exposure
Most investors are well-known and have a reputation in the ecosystem, so once the news spread that they are investing in you, you will have enough credibility to give you exposure, a good reputation, and some contacts as well.
What do you need to know before considering angel investment?
You lose sole ownership to your company
You don’t have to pay the investors their money back, but there is a price to pay. As angel investments are humongous, investors usually own part of your company and your profits as a result.
The part they get in your company is anywhere between just being on the board, joining-in on big decisions, partial involvement, or the kind of complete involvement a partner would have.
Angel investment is harder to get more than you think!
Getting an angel investor is far from easy; you have to do your research well, and prepare yourself and your idea even better.
Moreover, due to the fact that angel investors invest a lot of money, it takes a lot of convincing to score one down. You have to work really hard to tell an investor that you are worthy of their money.
Bigger expectations to meet
The bank gives you the money based on statistics and all that, but they really don’t care much about seeing your company grow. Investors, on the other hand, they invest because they want to see you grow, and they are willing to wait for it.
Moreover, they have high expectations about their profit, their role in the company, and the company’s growth. They expect results, which might add more pressure to you and your team, in meeting those expectations.
Summing it up, angel investment comes with a lot of golden opportunities that are perfect for your business, yet it takes a lot of planning and thinking. So you need to think it thoroughly, and remain as organized and planned as possible.