American VC fund 500 Global comes to Egypt despite tech downturn

A major venture capital fund will soon open an office in Egypt and launch several programs to support startups in the country. 

The San Francisco-based 500 Global announced today they signed an agreement with Egypt’s Information Technology Industry Development Agency. Together, they will launch the following programs to support Egyptian startups, according to a press release. 

• A bootcamp for very early-stage startups known as the “seed” stage of funding. 
• A “scale-up” program to help startups in the Series A stage that are anticipating more investment. Companies in this stage have attracted a degree of capital already. 
• A bootcamp for startup accelerator managers. This refers to a mentorship program where startups receive guidance, limited funding and other forms of support in return for equity. 

500 Global will also open an office in Cairo per the agreement. The company did not say when the office will open, but it will be their first on the African continent. 

500 Global focuses on relatively early-stage technology companies and manages $2.7 billion in assets. 

Why it matters: Egypt’s startup scene has grown considerably in recent years. Egyptian startups work in a variety of fields, including climate change, fintech and agriculture. 

Startups in Egypt and the region are experiencing a downturn at present, however. Regional venture investment decreased in the third quarter of 2022, as Sam Wendel wrote for Al-Monitor PRO this month. 

Several Egyptian startups are also laying off workers. The Egyptian-founded transportation startup SWVL also just cut 50% of its workforce and ceased operating in Pakistan. Earlier this year, SWVL was acquiring other companies. 

Know more: Egypt is not the only country in the region experiencing this. Israeli startups have experienced massive layoffs this year. Funding and new job openings in Israeli tech are also on the decline, Doron Peskin reported for Al-Monitor this month.