MAGNiTT’s Q3 2018 Venture Investment report highlights the latest trends in venture capital funding across the MENA region for the first 9 months of 2018.
- ● The amount invested in MENA-based startups in Q3 2018 was roughly on par with Q2 2018, as $82M was invested across 62 deals.
- ● Deal activity declined in Q3 2018 relative to Q2 2018, although there was a pick-up of announcements and activity in September 2018.
- ● Total estimated funding, including calculations for undisclosed deals, over the first 9 months of 2018 amounted to $325m. This is down $95m from the same period in 2017, which amounted to $420m (excl. Careem’s $150m investment in June 2017).
- ● The UAE continued to account for the largest share of startup deals (29%) and investment amount (61%) in 2018 YTD, with the emergence of the Egyptian, Lebanese, Jordanian, and Saudi Arabian ecosystems
- ● 2018 YTD most active venture capital investors were 500 Startups (28), MEVP (12) Arzan Capital (9) being the most active by number of investments
The full analytics report directly includes analysis of all transactions between January & September 2018, ranking of MENA investors, breakdown of investments by stage, industry and geography. Click here to PURCHASE REPORT.
1. 2018 YTD Funding:
● 239 investments were made in the first nine months of 2018, which marks a 4% decrease compared to the number of deals for the same 9-month period in 2017.
● In 2018 YTD, total disclosed funding in startups was down 38% to $238m compared to the same period in 2017 (when stripping out Careem’s $150m investment in June 2017).
● 37% of investments were shared with undisclosed figures in 2018 YTD, up 20% from the same period in 2017.
● Total funding in 2018 YTD, including calculations for undisclosed deals, amounted to $325m, which is down $95m from the same period in 2017.
2. Funding Institution activity:
- ● 500 Startups remains the most active venture capital investor by number of deals, accounting for 28 investments, followed by MEVP with 12 deals and Arzan Capital with 9.
- ● Moreover, accelerator programs remain a key stakeholder in supporting early-stage startups, with Flat6Labs Cairo graduating 18 firms, as well as Oasis 500, Flat6Labs Bahrain, Flat6Labs Beirut and Flat6Labs Tunis graduating cohorts of 8 startups each.
- ● Emerging active investors to the MENA region in 2018 include Flat6labs Bahrain, Kingsway Capital, Cedar Mundi, Phoenician Funds and Fikra Labs.
3. Investment Breakdown:
- ● The UAE continued to account for the largest share of startup deals (29%) and startup funding (61%) in 2018 YTD.
- ● Both Egypt and Lebanon saw an increase of 4% in the number of startup deals in the first 9 months of 2018 compared to H1 2018, reflecting increased activity over the summer.
- ● E-commerce still remains the most active industry with regards to startup investment in 2018 YTD, accounting for 12% of all transactions and 23% of disclosed funding.
- ● Early stage investment accounted for 77% of all transactions in 2018 YTD, down 1% from the same period in 2017, while accounting for only 19% of the total funding amount.
- ● 2018 YTD saw 34 Series A transactions and 6 Series B deals announced.
The full analytics report directly includes analysis all transactions between January & September 2018, ranking of MENA investors, breakdown of investments by stage, industry and geography. Click here to PURCHASE REPORT.