Start-up deals rise in volume but fall in value
By Nik Pratt / Funds Global MENA
The first half of 2018 saw a record number of investments in Middle East and North African start-ups; however, the value of disclosed investments fell by 43% compared with the same period in 2017.
A report from start-up data provider MAGNiTT tracked 141 deals in the first half, a 12% increase on the number of deals made in 2017.
The disclosed value of the first-half deals was $112 million. Almost a quarter (23%) of the deals were undisclosed – more than in the corresponding period in 2017.
The report showed that the UAE continues to dominate the start-up investment market, accounting for 32% of the deals and 59% of the funding, followed by Egypt and Saudi Arabia which saw increases in funding of 12% and 9% respectively.
While the report states that there have been several new entrants into the venture capital market, the most active investors remain the same as in 2017 with US-based 500 Startups accounting for ten deals, followed by Middle East Venture Partners with eight deals and Arzan Capital with seven deals.
MAGNiTT founder Philip Bahoshy said state-sponsored investments, funds of funds, greater corporate venture capital activity and supportive regulation as the main factors that were expanding the region’s start-up investment market.