MENA's 2020 Most Active Investors: Where Did The Venture Capital Funds Go?
As projected in MAGNiTT’s H1’20 Investor Sentiment Survey, the COVID-19 pandemic has shifted innovation priorities in the region: 27% of surveyed investors changed their mandate towards positively impacted industries, while the VC appetite for early-stage ventures or new geographies dried up.
The latest MENA 2020 Most Active Investors report gives further insights on the changing appetite of regional venture capital fund managers, indicating their growing interest in later-stage ventures from E-Commerce, Food & Beverage, and FinTech industries.
Who are the winners of the pandemic?
The pandemic has induced a higher level of risk aversiveness of MENA-based investors, with a registered shift towards investments in later-stage startups that accounted for 70% of total transactions in 2020 Q1-Q3 (compared to 47% in 2019). In terms of industry preferences, the allocation of funds shifted towards sectors that benefited the most from the global lockdown: E-Commerce, Food & Beverage, and FinTech:
Source: MAGNiTT Q3 2020 MENA Venture Investment Report
Remarkably, KSA, Jordan, and Egypt registered stunning increases in the number of active investors in 2020 Q1-Q3 by 43%, 20%, and 10%, respectively.
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Who were the most supportive investors during the pandemic?
500 Startups, a US-based venture capital firm with investments in over 2,000 companies through 4 global funds and 14 thematic funds, accounted for the lion’s share of investment activity (10% of total) in 2020 YTD, followed by Wamda Capital and Vision Ventures (3% each).
Industry-wise, 500 Startups took the crown as MENA’s most active investor in Fintech and E-Commerce with 7 disclosed deals in each sector, while on the other hand, Global Ventures led investments in the Food and Beverage industry with 3 deals disclosed to MAGNiTT.
Regardless of the COVID-19 pandemic economic impact, a total of 247 investors took part in the deployment of $803 million invested across 360 successful investment deals between Q1-Q3 2020 in the Middle East and North Africa region.
To discover the top 10 investor profiles and their 2020 investment strategies, check out MAGNiTT’s latest MENA Investor Report.
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