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MENA Startup Funding Plummets 78% in April 2024 In a world where innovation and entrepreneurship drive economic growth, the Middle East and North Africa (MENA) region has emerged as a hotbed for startups. However, the ecosystem faced a significant setback in April 2024, with startup funding plummeting by a staggering 78% compared to the previous month. Despite this sharp decline, the resilience and potential of the region’s startups cannot be overlooked. In this article, we will delve into the factors contributing to this downturn, explore the sectors that managed to secure funding, and discuss the opportunities that lie ahead for MENA startups. The Numbers: A Closer Look In April 2024, only 19 startups in the MENA region managed to raise a total of $55 million, a mere shadow of the $254 million raised in March. While this represents a 78% decrease month-on-month, it is important to note that it still marks an 87% increase compared to the same period last year. The cautious approach adopted by venture capital (VC) companies in the wake of the first-quarter downturn has undoubtedly contributed to this decline. While the 78% drop in startup funding in April 2024 may seem daunting, it is crucial to view this as a temporary setback rather than a permanent hindrance. The MENA region’s entrepreneurial spirit, innovative mindset, and untapped potential remain intact. As startups navigate these challenging times, it is essential to focus on building resilient business models, fostering collaborations, and leveraging the support of the ecosystem. To all the aspiring entrepreneurs and existing startups in the MENA region, now is the time to adapt, innovate, and seize the opportunities that lie ahead. Embrace the challenges as a chance to refine your strategies, explore new markets, and forge meaningful partnerships. The road ahead may be bumpy, but with determination and a clear vision, the MENA startup ecosystem will undoubtedly bounce back stronger than ever. Abdulla Bin Touq What does the ministry think about this direction in the economy? #uae #mena #fintech #Crunchbase #in5 #dic #DubaiInternetCity #technology #b2b #startups #software #Entrepreneurship #development #funding #project #environment #investment #opportunities #analytics #stockmarket #Networking #glocal #mentorship #ceo #socialentrepreneurs #b2p #b2c #dubai #crunchdubai #team #leader #startupcompany #Businessmindsets #Crowdfunding #cloud #marketingdigital #Socialmedia #Marketing #Socialnetworking #humanresources #leadership #entrepreneursmindset #branding #marketing #management #manufacturing #engineers #machinelearning #softwaredevelopment #dataengineering #searchengineoptimization #startup #digital #art #science #planning #innovation #sustainability #collaboration #security #strategy #sustainable #entrepreneurs #language #seo #success #unitedarabemirates Read more here👉👉👉 https://lnkd.in/e4rJFQxc

UAE-based startups led the region in funding last month, securing $82.5 million across 15 deals. Egyptian startups followed with $15 million raised by four companies, marking the second-highest total. Saudi Arabia dropped to third, with seven startups raising $13.5 million. Notable activity was also observed in Iraq, with six startups raising an estimated $1.2 million, though this amount could be higher as Orisdi, BonLili, and Alsaree3 did not disclose their investment values. Sector wise, fintech reclaimed its position as the most funded sector in June, securing $38 million over 10 deals, closely followed by contech, thanks to Tenderd’s deal. Meanwhile, three proptech startups raised $19.6 million in June, reversing the lead it achieved in May. The majority of June’s investment went to the pre-Series A stage, as four startups received $45 million, followed by the Seed stage, where five startups raised $27.3 million. However, when considering investment volume, early stage startups are still capturing the attention of investors, where eight startups at their pre-seed stage garnered $3 million, and eight others received $140,000 in grants. Wamda Capital Wamda ومضة Nesma Abdel Azim

The MENA region showed robust investment activity, with a 182% year-on-year increase in June 2024. 38 tech startups raised $116 million, bringing the half-year total to $882 million, according to a report by Wamda and Digital Digest. UAE-based startups secured $82.5 million across 15 deals, leading the region, followed by Egyptian startups with $15 million across four companies. Saudi Arabia saw seven startups raise $13.5 million, while six Iraqi startups garnered $1.2 million. Fintech remained the top sector with $38 million across 10 deals, followed closely by proptech. Business-to-business (B2B) startups led funding with $66.4 million across 18 deals, accounting for 74% of total investment. In contrast, business-to-consumer (B2C) startups raised $49.5 million. Male-founded startups dominated the funding landscape, securing $103.4 million or 89% of total investments, while two female-led startups raised $200,000. External factors, such as Middle Eastern tensions and the Russia-Ukraine conflict, have created uncertainty, leading to a 46% decline in total funding in H1 2024 compared to the same period last year. The UAE remained the leading funded ecosystem, with 91 startups raising $455.5 million in H1 2024, followed by Saudi Arabia with $300 million. Despite GCC investments in Egypt, the country's economic crisis led to a significant decline in its startup ecosystem, with only 33 startups raising $83 million. Proptech emerged as a favorite among investors, securing $200 million in H1 2024, surpassing fintech. SaaS startups raised $164 million, while e-commerce and foodtech saw significant declines. Debt financing made up just 17% of H1 2024 funding, down from 39% in H1 2023. Investors showed a preference for the Seed stage, with 52 Seed rounds securing $131 million. Pre-Series A startups raised $96 million, while Salla's pre-IPO round alone garnered $130 million. Saudi Arabia-based VCs led investments with 60 deals in H1, followed by UAE-based VCs with 41 deals. The US was the top foreign investor, funding 31 startups. RZM Investment and Hope Ventures were the most active investors, each participating in seven deals. Despite the slowdown in H1 2024, several VC firms have launched new funds, pledging billions to tech companies in the MENA region, likely boosting Q3 investment volumes. #Tech #Startups #MENA #Funding #AI

Zilla Capital Latest Flash Note MENA Tech Startups: An Era of Opportunities “Looking ahead, startups are inherently driven to environments where they can find ample funding and robust support systems. Given the current landscape, Saudi Arabia stands out as a prime destination for startups in the near future due to its increased investment in innovation and entrepreneurship. This trend is likely to continue unless other regional players, such as the UAE or Egypt, implement strategic initiatives to enhance their attractiveness to startups. These measures could include offering competitive funding opportunities, creating startup-friendly policies, and building stronger support networks. Without such efforts, Saudi Arabia is set to lead the region in becoming the hub for entrepreneurial activity.” #economics #startups #mena #zillacapital

MENA start-ups raise $116 million in June 2024, bringing H1 total to $882 million 🔑 Key Highlights 🔑 ▪ Investment activity in MENA’s start-up space slowed down in June 2024, as 38 tech start-ups raised $116 million, bringing the half-year total to $882 million. The amount raised in June declined 59% month-on-month, but rose 182% when compared to the same period last year. ▪ UAE-based start-ups led the region in funding last month, securing $82.5 million across 15 deals. Egyptian start-ups followed with $15 million raised by four companies, marking the second-highest total. Saudi Arabia dropped to third, with seven start-ups raising $13.5 million. ▪ Last month was marked by an absence of mega deals, where the biggest ticket size in June went to Tenderd's $30 million deal. ▪ Sector wise, fintech reclaimed its position as the most funded sector in June, securing $38 million over 10 deals, closely followed by contech thanks to Tenderd’s deal. Meanwhile, three proptech start-ups raised $19.6 million in June, reversing the lead it achieved in May. ▪ The majority of June’s investment went to the pre-Series A stage, as four start-ups received $45 million, followed by the Seed stage, where five start-ups raised $27.3 million. However, when considering investment volume, early stage start-ups are still capturing the attention of investors, where eight start-ups at their pre-seed stage garnered $3 million, and eight others received $140,000 in grants. ▪ Start-ups operating the business-to-business (B2B) model dominated most of the funding in June, raising $66.4 million across 18 deals, accounting for 74% of the total investment, while 20 business-to-consumer (B2C) start-ups raised $49.5 million.

Thinking of launching your startup in 2024? 🌍 Explore the best countries in the MENA region like the UAE, Saudi Arabia, Egypt, Bahrain, and Jordan! These countries are leading with supportive ecosystems and booming venture capital. 🌱💡 👉 Visit kzaad.com for more insights on how to grow your startup in the Middle East! #KZAAD #Startup #Entrepreneurship #MENAStartups #BusinessGrowth #VentureCapital #Innovation https://lnkd.in/e5aMEU3t

🌐 Exciting News in MENA Startup Scene 🚀💼 According to Arab News, Investments in Middle East and North Africa startups reached $86.5 million in January, kicking off 2024 at a steady pace. Saudi Arabia-based proptech startup Rize secured $2.9 million in seed funding for expansion. Check out the details: https://arab.news/wxk76 #TransworldGCC #GCC #MENA #Startups #BusinessNews #Investments #ArabNews #Entrepreneurship #TransworldBusinessAdvisors 

In September 2024, the MENA region witnessed a surge in startup funding, with a total of $328.3 million raised by 60 startups across 36 investors. Leading the pack, Saudi Arabia secured $165 million for 13 startups, followed by the United Arab Emirates with $114 million for 28 startups, and Egypt with $25 million for 8 startups. Late-stage venture capital rounds dominated the funding landscape, accounting for $129 million, while seed and Series A rounds secured $57 million and $55 million, respectively. The top five startups collectively raised over $197 million, with SHIFT leading the pack at $83 million. Other notable funding rounds included Syarah ($40 million), TON ($30 million), PayMob ($22 million), and Ziina ($22 million). These companies represent a diverse range of sectors, including logistics, transportation technology, fintech, and digital financial services. For the full report check: https://lnkd.in/gg7w3Wp6

Mena startups raise $254 million in March and $429 million in Q1. The majority of funding went to software as a service (SaaS) providers, harvesting $130.6 million in nine deals, outpacing fintech, which saw $40 million over 12 transactions, while four e-commerce startups landed $18 million. As if this could get worst then the last few quarters, Well it did. It got so much worst! Female-led stratups formed 0.21% of total transactions. The LEAP24 tech conference, held in Riyadh last month pushed Saudi startups to the top, securing $198 million. The UAE came in second with $39 million, while Egypt was a distant third raising $7 million. VCs have shifted their focus to the B2B sector, which accounted for 74% of overall investment in March. This strategic move reflects an increasing need for enterprise-focused solutions, particularly in the SaaS and logistics sectors. Find Full article below: https://lnkd.in/dy86XyuM