In spite of macroeconomic and geopolitical uncertainty in 2022, start-ups across the Middle East, Africa, Pakistan, and Turkey raised $7.2 billion through 1,473 deals, according to a report by data platform Magnitt. The funding value was driven by decreased late-stage mega deals and reduced by 2% annually. Researchers noted that the number of deals also declined at a faster rate of 4.4%. Despite this, FinTech led both funding and the number of deals in the MEAPT region. Funding for start-ups in MENA alone reached $3 billion, an annual increase of 8.3%.
“Our report reflected a strong first quarter for venture capital in the Middle East, Africa, Pakistan, and Turkey. However, this was driven by the hangover of post-pandemic positivity, which distorted the delayed impact of global macroeconomic challenges and was not grounded in real-world sentiment,” said Philip Bahoshy, founder and chief executive of Magnitt. Economic uncertainty and geopolitical tension have affected global venture capital financing. However, alternately, entry valuations have decreased significantly, opening investment opportunities for venture capital investors.
Venture capital financing for start-ups in MENA rose 20% annually to more than $2.3 billion in the first three quarters of 2022, putting it on track to potentially surpass total investments attracted in 2021. Turkey emerged as the leading country in the MEAPT region for start-up funding and deals. It recorded a total of 295 deals, followed by Nigeria with 198 deals.
Several influential companies have established seed accelerator programs in various locations to support emerging start-ups in the region. Sanabil Investments, a financial firm wholly owned by Saudi Arabia’s Public Investment Fund, and US venture fund 500 Global welcomed new start-ups for their Middle East and North Africa (MENA) seed accelerator program. Additionally, Microsoft’s GrowthX Accelerator program has graduated 48 start-ups since it began in 2021.
عبدالرحمان زمین پیما
Author
آرمان جعفری
Author
