Averroes Ventures Launches $50M Fund to Transform Waste into Wealth in MENA

Averroes Ventures is gearing up to launch a USD 50 million fund with a clear mission: back startups that turn waste into something valuable across the Middle East and North Africa. The Egypt-based venture capital firm is setting its sights on recycling, industrial production, agriculture and energy, sectors many investors once overlooked in favour of the usual fintech and e-commerce darlings.

This new vehicle, expected to reach a final close in the third quarter of 2026, reflects a wider shift in how capital is moving around the region. As global supply chains continue to feel the strain of geopolitical tremors, there is growing interest in businesses that can reduce import dependence and build things locally. In short, less shipping containers, more homegrown factories.

Speaking to Asharq, Dr Ahmed A. Alsharif, Founding Partner and CEO of Averroes Ventures, said the firm plans to raise the USD 50 million fund with support from international investors, development institutions and local banks. The focus will be on startups that recycle waste into value-added products, in addition to companies operating across industrial, agricultural and energy value chains. The broader aim is to strengthen domestic production and cushion economies against supply disruptions.

I’ve noticed that whenever founders in MENA pitch “hard” sectors like manufacturing or waste management, the room can go a bit quiet. It’s not always as flashy as a consumer app. But things are changing, and not before time, I reckon. Resource efficiency and circular economy models are no longer a niche conversation. They’re becoming, quite simply, a necessity.

Founded in 2017, Averroes Ventures invests at seed and early stage. It currently manages a portfolio valued at around USD 10 million, including startups such as Nawah and Khaznly. The firm has previously backed Breadfast and Khaznly, and has exited investments in Breadfast and Trella. That track record, modest but steady, gives it some footing as it prepares to scale up.

Timing, as they say, is everything. Venture funding across MENA climbed to USD 3.8 billion in 2025, spread over 688 deals, a 74% year-on-year increase, according to Magnitt. Egypt alone accounted for USD 614 million, roughly 20% of total funding across Africa. That’s not pocket change.

And believe it or not, we’re also seeing a subtle but meaningful rotation in investor appetite. Sector-specific funds are gaining ground, particularly those tied to the real economy, manufacturing, agriculture, energy. On the flip side, easy-growth narratives are facing tougher questions about profitability and resilience. In that context, waste-to-value startups don’t seem so fringe anymore; they look… well, rather spot on.

For founders operating in recycling or industrial processing, this could open doors that were previously bolted shut. Access to patient capital in these sectors can be a game changer, especially when scaling requires real assets, machinery and longer development cycles. It’s not always quick wins and hockey-stick charts. Sometimes it’s about building solid pipes and plants that actually work.

The big question now is whether Averroes Ventures can secure the targeted mix of institutional and local backers by Q3 2026. Equally important will be how swiftly the fund deploys capital, and whether these bets translate into scalable, profitable businesses across the region.

At Arageek, we often speak about empowering startups that tackle the region’s real challenges. Waste, energy security, food systems, these aren’t buzzwords, they’re daily realities. If more capital flows into founders solving these gritty problems, the ecosystem will be all the stronger for it. And that, in my view, is a trend definately worth watching.

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