Venture capital investments in the Middle East and North Africa (MENA) surged to $355 million in July, marking a 206% increase from June and a 260% rise compared to the same period last year, according to recent data. This robust growth underscores the region’s resilience amid global economic challenges and rising geopolitical tensions, particularly involving Israel and Iran.
Despite the broader uncertainties, the number of deals remained steady at 38, signaling a stable investment environment, as highlighted in Wamda’s monthly report. The anticipation of a potential US Federal Reserve interest rate cut in September is likely contributing to renewed optimism, which could boost market liquidity and enhance the region’s investment appeal.
In July, startup debt financing accounted for less than 1% of total investments, indicating a shift toward venture capital as the primary funding source and suggesting a recovery from previous investment slumps.
Egypt emerged as the top destination for venture capital, attracting $185 million across seven deals—a significant jump from June’s $15 million across four deals. This surge was largely driven by a $157.5 million investment in fintech startup MNT-Halan. The UAE followed with $96 million invested across 12 startups, while Saudi Arabia experienced a sharp decline, securing $31 million from seven deals, falling behind Oman, where startup 44.01 raised $37 million.
Fintech remained the most attractive sector, drawing $181 million across 16 startups. Web 3.0 providers followed, with $85 million in funding for two startups. The deeptech and cleantech sectors also saw significant investments, fueled by major funding rounds for 44.01 and Intelmatix. While e-commerce didn’t lead in total investment, it remained competitive in deal volume, with six startups raising $15.7 million.
Overall, these figures highlight the MENA region’s strong position and growing appeal in the global startup ecosystem, despite ongoing economic and geopolitical challenges. In July, early-stage investments dominated the MENA funding landscape. Seed-stage startups secured $96 million through eight deals, while Series A rounds garnered $91.7 million across an equal number of deals. Pre-seed investments were relatively modest, with $1.8 million raised by five startups.
The business-to-business (B2B) model continued to attract the majority of investments, drawing $345 million across 27 startups. In contrast, business-to-consumer (B2C) startups secured nearly $8 million, while business-to-business-to-consumer (B2B2C) companies raised the remaining funds.
for more details: https://ciolook.com/
