February 2021 YTD found that venture capital activity across MENA countries trended down both in terms of capital invested and the number of closed funding rounds, compared to the same pre-COVID-19 period in 2020. At the same time, capital invested in startups in the neighbouring emerging venture markets, such as Turkey and Pakistan, significantly increased year over year, although the number of deals was down, indicating the spread of the investments across larger transactions.
To get a comprehensive overview of venture activity in February, download MAGNiTT’s February 2021 Venture Investment Dashboard.
If you find it difficult to manage the latest venture investment activity from across the region or are an investor tracking activity, consultant looking to identify trends, or a government entity searching for investments in your geography, the Dashboard is your go-to tool to keep you up-to-date.
The below 3 points summarise the Dashboard's main industry findings by each particular ecosystem.
1. MENA: Fintech led investment activity with 21% and 40% of deal and funding activity
The industry which has been gaining more traction and attention over the past year attributed to the COVID-19 crisis and the acceleration of digital transformation amongst other things, continued to pave its way in February, by receiving both the highest amount of funding and number of deals.
The top Fintech funding round in MENA was Tarabut Gateway's $13M Seed funding. The investment, which was led by Target Global, marked the largest Fintech Seed round in MENA and followed the startup's recent expansion into the UAE in October 2020. Tarabut Gateway will use the funding to support its regional expansion plans and develop current product offerings.
2. Turkey: Gaming saw $110M invested in 2 deals, accounting for 90% of funding in the country
The gaming industry in Turkey, which last year witnessed a mega exit when Zynga, a global leader in interactive entertainment acquired Peak, a globally successful mobile gaming company, for $1.8B, has continued to play a major role in venture activity in the country.
Both Loop Games, a studio that develops mobile games, and Dream Games, a mobile gaming company based in Istanbul, raised their Series A round in February, accounting for almost 100% of the funds raised in the month.
3. Pakistan: 90% of funding went to the Multimedia industry, ranking 3rd by funding YTD
In 2020, Pakistani startups raised $77M with the Transport industry taking the top spot. So far YTD, E-commerce is currently leading the way, but February saw Multimedia account for the majority of funds due to Rinstra's Series A round.
The startup, which is a multimedia technology platform for emerging filmmakers, content creators, and storytellers, raised $2M to help grow its digital platform and encourage creators to continue producing quality online content.
The February 2021 Dashboard provides a summary of venture activity for each of the three markets mentioned above and includes a comprehensive overview of the top funding rounds, latest exists, most active investors, and more.
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