MAGNiTT has prepared an in-depth 50+ page report detailing the state of MENA startup funding across the region.

The report shows that 2017 was a record year in terms of total funding and the number of deals.  MENA funding increased by 65% YoY (excl. Souq & Careem), while the number of deals rose by 32%.

Below are a few highlights from the report:

MENA landscape overview:

  • Last year saw $560m invested into 260 startups across the MENA region.
  • E-commerce and FinTech remained the most popular industries, accounting for approximately 24%.
  • The top 10 deals in 2017 accounted for $349m, equating to roughly 60% of the total investment amount ($560m).

Evolution analysis:

  • In comparison to previous years, 2017 saw the strongest Q4 on record in terms of the number of deals, however the overall value of funding was down $19m.
  • 2017 also saw the highest Q2 and Q3 funding activity in terms of deals and funding amount in MENA history.
  • We continued to see increased transparency with more deals disclosed than ever before, with only 39 (15%) deals remaining undisclosed.

2017 – Transaction review

  • The first half of 2017 saw more concluded deals than the second half of the year

2017 MENA Exit review:

  • 2017 saw a record number (20) of exits, including the notable acquisitions of Souq and Payfort by Amazon.

Stage of Funding – Deep dive analysis:

  • The focus of deals has been in Early stage investment, while the greatest value of funding stemmed from Series B investments.

Industry – Deep dive analysis:

  • Transport and Logistics saw the greatest amount of funding in 2017, while E-commerce remained the most active industry in terms of the number of deals.
  • Fintech saw the largest increase (18%) in the amount of funding.
  • Food & Beverage saw for the largest increase in deal activity.

Geography – Deep dive analysis

  • The UAE continues to see the majority of activity, accounting for 70% of  investments and 40% of deals, while Egypt saw the largest increase in amount of funding, up 4% from 2016 and KSA saw the largest increase (2%) in the number of deals