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Thursday, 17 November 2022

Modus Capital could invest in Egyptian AI, blockchain startups with new USD 75 mn fund

Modus’ new fund eyes African tech startups — including here: MENA-focused venture capital firm Modus Capital has launched a fresh USD 75 mn fund, dubbed Modus Africa, that will target early-stage African startups, it said (pdf) on Tuesday. The fund will invest in companies that use AI and blockchain technology and is expected to reach first close in 1Q 2023.

It’s looking at Egypt: Modus is in talks with a number of local companies, Modus Africa General Partner Andre Ayotte told Enterprise. The firm isn’t sharing the names of the companies at this stage, he said, but added that it is looking at “startups across all sectors.” The proviso: They need to be using AI and blockchain technologies.

Ticket size and other particulars: The fund is looking to write cheques to some 45 or so companies in the “seed plus” stage, with ticket sizes in the USD 350k to USD 1.2 mn range — and up to USD 2 mn for follow-on investments, Ayotte told us.

About Modus: Modus has established branches in Cairo, Abu Dhabi, and most recently Riyadh, and is supported by backers including Mubadala's Hub71 and USAID. It participated in Egypt-based blockchain email service provider Pravica’s USD 500k pre-seed funding round back in 2020.

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