The Egypt-based VC is betting on recycling, industry, and energy startups across MENA, with a Q3 2026 close in sight
Averroes Ventures is moving to scale its investment strategy. The Egypt-based firm is preparing to launch a USD 50 million fund targeting startups that turn waste into value across North Africa and the Middle East.
Why You Should Care
This is not just another VC fund. It signals growing investor focus on resource efficiency and local production in the region.
As supply chains remain exposed to global disruptions, capital is increasingly flowing toward startups that reduce import dependence and build domestic industrial capacity. For founders, this signals rising interest in sectors at the intersection of sustainability and infrastructure.
In an interview with Asharq, Dr. Ahmed A. Alsharif, Founding Partner and CEO of Averroes Ventures, disclosed that the firm intends to launch a USD 50 million fund to invest in startups in the Middle East and North Africa.
The fund will focus on startups working in waste recycling and converting it into value-added products. It will also focus on the industrial, agricultural, and energy sectors. Thus, aiming to reduce imports and enhance the ability to face supply chain disruptions.
According to Asharq, Averroes Ventures plans to raise the funds with backing from international investors, development institutions, and local banks. The firm is targeting a final close in the third quarter of 2026.
Founded in 2017, Averroes Ventures is a seed-stage and early-stage venture capital firm. The firm currently manages a portfolio of startup investments valued at approximately USD 10 million, including companies such as Nawah and Khaznly. It previously participated in funding rounds for startups, including Breadfast and Khaznly, and has previously exited investments in Breadfast and Trella.
The timing aligns with a broader rise in venture capital activity across the region. Startup funding in MENA reached USD 3.8 billion across 688 deals in 2025, marking a 74% year-on-year increase, according to Magnitt.
Egypt is a key player, with startups raising USD 614 million in 2025, equivalent to roughly 20% of total funding across Africa.
The Ripple
Averroes Ventures’ focus adds to a growing shift toward sector-specific funds in the region. Investors are increasingly targeting industries tied to real economy activity, including manufacturing, agriculture, and energy.
This could widen the pipeline for startups operating in waste management and circular economy models, areas that have historically seen less venture capital compared to sectors like fintech or e-commerce.
What to Watch
The next milestone is whether the fund reaches its Q3 2026 close with the targeted mix of institutional and local investors.
Equally important is how quickly capital is deployed into startups operating in recycling and industrial value chains, and how these investments begin to translate into scalable businesses across the region.
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