Investor Updates: July 21 2022 - Strive Masiyiwa’s Cassava Technologies receives $50m investment fro...

Strive Masiyiwa’s Cassava Technologies gets $50m from C5 Capital

Highlights

• Cassava Technologies, a pan-African IT company, this week secured a $50 million investment from C5 Capital (C5), a specialist venture capital firm that invests in cybersecurity, space, and energy security.
• The investment is part of broader funding round to accelerate Cassava’s growth and work in Africa’s digital infrastructure space, particularly in delivering cyber security, satellite & space technology, and clean energy.
• C5 and Cassava already announced a joint venture through which Haven Cyber, a C5 portfolio company, and Cassava Technologies will scale Microsoft’s suite of cybersecurity products across Africa to help combat the threat of cybercrime.

Source: ITNewsAfrica

Our Takeaway

Alongside the increasing adoption of technology by businesses and governments across Africa, cyberthreat threats have risen, costing the continent around $4 billion in lost GDP last year. That underscores the importance of Cassava’s deal with C5. The former has operations in over 20 African countries, offering digital infrastructure services that include fiber networks, data centers, renewable energy, cloud and cyber security, fintech, and digital platforms. The company claims to serve over 1 million enterprises and provides access to the internet for over 500 million people in Africa.

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Dutch bank commits $10m to Algebra Fund II

Highlights

• FMO, the Dutch entrepreneurial development bank, has pledged a $10 commitment to the second fund of Algebra Ventures, a leading Egyptian venture capital firm.
• The FMO Ventures Programme is a EUR 200 million investment vehicle funded by FMO, the Ministry of Foreign Affairs, and the European Commission, targeting early-stage technology-enabled businesses in frontier and growth markets.
• Algebra Ventures has already invested in 21 startups through its $54 million inaugural fund. Through the new fund, Algebra Ventures plan to continue to support technology startups with access to finance and talent, driving innovation and job creation primarily in Egypt.

Source: Wamda

Our Takeaway

Tech startups stand to gain significantly from increasing amounts of venture capital available in Egypt, which has grown more than 10-fold since 2016. For the FMO, the investment is part of its strategy to support Africa’s booming startup and entrepreneurship ecosystem. The Dutch bank had previously backed Egypt’s merchant payment platform Paymob (2020), salary payment platform Dopay (2019), and SME lender and marketplace Liwwa (2018). Meanwhile, Algebra’s $90 million fund has previously attracted commitments from International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD), highlighting the interest of foreign development banks in Africa’s booming startup ecosystem.

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Mohamed El-Sewedy acquires Egypt’s Magma via Averroes Ventures

Highlights

• Egypt-based Magma, a sportswear manufacturer, has been fully acquired by its incumbent CEO Mohamed El-Sewedy via venture capital firm Averroes Ventures.
• Launched in 2018, Magma is a sportswear brand specializing in making an athletic mesh fabric with moisture management and anti-microbial qualities. 
• The company had started online, and recently expanded its retail business through well-known outlets such as Debenhams. Magma also benefits from a solid team experienced in the e-commerce sector.

Source: Wamda

Our Takeaway

The booming Egyptian economy is known to encourage local manufacturing and exports to other markets. That, coupled with growing market demand for native fashion brands and e-commerce services, points to a bright future for Magma, prompting its acquisition by Averroes. The VC firm invests and supports early-stage startups and SMEs operating in the logistics technology, food, Agritech, and e-commerce industries in Egypt and the MENA region. With new investments and a management team, Magma could be on its way to becoming a pan-African player.