Averroes Ventures, an Egypt-based venture capital firm, has announced its plan to launch a new $50 million fund dedicated to startups across the Middle East and North Africa. The fund will target companies specializing in waste recycling, industry, and energy, signaling a strategic pivot towards resource efficiency. This initiative aims to bolster local production and strengthen regional supply chains against global disruptions.
Strategic Focus on the Circular Economy
The new fund will champion a strategy centered on the green economy and sustainable development. Its primary focus is on startups that convert waste into value-added products, a critical component of the circular economy. This approach reflects a growing investor interest in business models that are both profitable and environmentally conscious.
According to Dr. Ahmed A. Alsharif, the firm's Founding Partner and CEO, the investment scope extends to the industrial, agricultural, and energy sectors. The overarching goal is to support solutions that reduce the region's reliance on imports. By doing so, the fund seeks to enhance the resilience and flexibility of local supply chains.
Fund Structure and Timeline
Averroes Ventures is targeting a final close for the $50 million fund in the third quarter of 2026. The firm is actively raising capital from a diverse group of backers to support its ambitious vision. This coalition of investors includes international firms, development institutions, and prominent local banks.
Capitalizing on Regional Growth
The fund's launch is timed to coincide with a significant surge in venture capital activity across the MENA region. In 2025, regional startups attracted $3.8 billion in funding across 688 deals, marking an impressive 74% year-on-year increase. This dynamic environment provides a fertile ground for new investment vehicles focused on high-growth sectors.
Egypt has solidified its position as a key hub within this burgeoning ecosystem, playing a vital role in Africa's startup landscape. Egyptian startups successfully raised $614 million in 2025, which accounts for approximately 20% of the total funding secured across the continent. This highlights the country's importance as a source of innovation and investment opportunities for firms like Averroes.
A Proven Investment Record
Founded in 2017, Averroes Ventures has established itself as a key player in the seed and early-stage investment scene. The firm currently manages a portfolio valued at approximately $10 million, demonstrating its commitment to nurturing nascent companies. Its portfolio includes notable startups such as the scientific research platform Nawah and the logistics provider Khaznly.
The venture capital firm also has a history of successful strategic exits, which underscores its ability to identify and scale promising businesses. It has previously divested its stakes in the food delivery service Breadfast and the logistics company Trella. These successful outcomes have solidified the firm's reputation and paved the way for its next phase of growth.
The establishment of this $50 million fund by Averroes Ventures marks a significant development for the MENA region's investment landscape. It represents a deliberate move away from traditional tech sectors toward foundational industries that promote sustainability and self-sufficiency. The fund's success could catalyze further investment into the circular economy, shaping a more resilient and innovative industrial future for the region.