Middle East Venture Capital Funding: Active Investors, Stalled Funding

 The first half of 2024 witnessed a surge in investor interest within the MENA region's venture capital (VC) landscape, with a 33% increase in investor count compared to the same period last year. This reflects a flourishing entrepreneurial environment, particularly in the UAE, Saudi Arabia, and Egypt.
UAE Leads in Deal Volume, Saudi Arabia Tops Funding:

• The UAE led the region in deal volume with 83 transactions, marking an 11% annual rise.

·       UAE:

1.     Total Funding: UAE-based startups secured $353 million in VC funding.

2.     Growth Rate: The UAE experienced a remarkable 222% YoY increase in VC funding.

3.     Promising Areas: E-commerce, logistics, and health tech were among the sectors that received substantial investment.

4.     Investor Landscape: Both local and global investors actively participated in funding rounds, supporting the UAE’s vibrant startup ecosystem.

Saudi Arabia followed closely with 63 deals, though experiencing a slight 3% drop year-over-year.

Saudi Arabia:

1.     Total Funding: Saudi startups raised an impressive $400 million in VC funding.

2.     Growth Rate: This marked a staggering 602% year-on-year growth compared to the previous year.

3.     Key Sectors: The sectors that attracted significant investment included technology, e-commerce, and fintech.

4.     Investor Interest: International and regional investors showed keen interest in Saudi startups, recognizing their potential for growth and innovation.

Egypt saw a 15% decrease in deals compared to H1 2023, with 28 transactions.

Egypt:

·       Total Funding: Egyptian startups collected $4 million in VC funding.

·       Challenges: Unfortunately, this reflected an 86% decrease in YoY VC funding.

·       Factors: Economic instability, regulatory hurdles, and investor caution impacted Egypt’s startup funding landscape.

·       Potential Upside: Despite challenges, Egypt’s tech talent and untapped markets continue to attract interest, and efforts are being made to address funding gaps. 

• Morocco and Bahrain secured $17 million and $14 million in funding respectively, joining the top five alongside the aforementioned leaders.

Funding Dips Despite Investor Growth:

• Despite the rise in investors, total funding for regional startups dipped to $768 million, reflecting a 34% year-on-year decline.
• Interestingly, Saudi Arabia's venture capital market remained consistent with H1 2023, with non-mega deals making up a larger share (68%) compared to the previous year (35%).

Sector Leaders and Top Investors:

• E-commerce emerged as the most well-funded sector, attracting $244 million.
• Fintech, however, dominated in terms of the number of deals completed.
• The Public Investment Fund's Sanabil Investments stood out as the region's most active investor, deploying $57 million in capital.

Looking Ahead: Optimism for the Future

While a slowdown is observed, experts predict an upswing in VC activity during the latter half of 2024. The wider MENA region, including the UAE and Egypt, is expected to experience a particularly strong Q4.

Factors crucial for sustained growth include:

• Political stability
• Interest rate declines to boost market liquidity
• Conferences highlighting MENA's investment potential

The UAE and Saudi Arabia, despite the current slowdown, are well-positioned for continued ecosystem strength. Notably, the UAE's transaction growth is a positive indicator. With its focus on early-stage investment, the region is poised to become a magnet for international companies seeking to establish and expand within MENA.

 

Crowdfunding started to pave the way for Investors and Entrepreneurs in Middle East

Do you believe that your idea is worth funding? Are you struggling to get capital for your startup?   Then come to the international source of capital fund and gain ample support for your unique and creative idea.

The toughest part about starting a venture is finding a source of capital. Many people take out loans to make their dream or idea alive and spent their whole life to pay back these debts. Now the things have changed.  The old loan and funding system has replaced by the new concept which is known as Crowdfunding, the micro financing of a project or ventures by a large number of funders in an online setting. Simply it can be said as the solicitation of funds from multiple investors through a web based platform or social networking sites for a specific project, business venture or social cause. Since the late 1990s, this new form of informal financing system has been emerging as one of the best tools and successfully built up a new standard of excellence in the capital marketing.

This mode of financing is not new. What is new in crowdfunding is that it uses the capabilities of social network and other features of internet which enables the large number of users. There arise the question, how this becomes so popular?  It’s because of its extensive scope and simplicity of function. The fiscal crisis of 2008 had paralyzed the whole financial market and traditional system based on banks and other business establishment failed to keep the economical balance. It is during that time Crowdfunding emerged and re-established a strong financial system and a global entrepreneurial environs.

Crowdfunding has become the most viable way to fund the creative ventures and startups. There are more than 600 crowdfunding platforms around the world. But still so many people are not aware of this flexible source of capital. Startups and creative project such as music, art, and films get more privileges through this platform. It also helps the early stage companies to move on to the next level.

The benefits of crowdfunding is two sided. Crowdfunding provides ample opportunities for investment in spite of all the geographical barrier. The unique feature of investment in a Crowdfunding is anyone who gets interested in the idea can make their investment. Even a single Dollar is valued. It can make someone’s dream alive.

Buckacapital.com promoted by a UAE based business consultancy company is one of the leading Crowdfunding platform with a wide network of business experts, genuine and reliable investors. If you think that your idea is worth funding and you are able to describe your project and its goal, you can register and add your project in www.buckscapital.com.  It is a team of business experts who made their signature in the field of IT, investments and real estate and also are the eminent partners in the development of great Project on UAE. Their motto is a solid base for everlasting success in capital marketing.

 All types of projects which seem unfit for the patterns and rules of traditional capital market can find adequate capital through this web based international platform of Buckscapital.com. And what is required is just need to fix a goal and budget for your project. If you can explain your plan with suitable image and video in www.buckscapital.com you can successfully find outpourings of support from all over the world. Entrepreneurs must provide all the information regarding their project like

•         How long will it take to complete the project?
•         How much baking need to complete the project?
•        How does the money be used and details about the reward.

They also need to keep in touch with the community during the development of project.

            The crucial aspect of crowdfunding is the question of compensation and reward for the investors. Though few will pledge money simply to provide support. But as per the rules of crowdfunding the donors to be given anything as reward for their support.  This reward may be an immaterial acknowledgements ranging from a mere thank you mail, enhanced version s of the product, merchandise and souvenirs to making the contributor part of the product.

            Buckscapital is such a large international platform which help the upcoming entrepreneurs to connect to a global network of investors who are interested in the respected projects. “The coming year is the year of Crowdfunding and it is the most vibrant and fruitful accomplishment to strengthen the global entrepreneurial environs.” Said the CEO of Buckscapital. Once you register your project in www.buckscapital.com you will get the direct access to the investors which facilitate to gain market validation and exposure of the project. It’s a place where you can find risk free environment to make your idea alive which trigger rapid growth of the company.