With the release of our FY2022 Egypt Venture Investment Report, we take a look at the evolution of the country’s ecosystem performance amidst global challenges. Contact our sales team to learn more about this report and access the underlying data.
2022 was a challenging year globally as geopolitical tensions heightened, weighing heavily on the economic performance of different countries in the Middle East and Africa. While Egypt was impacted economically with inflation and currency depreciation heading the lines, the VC ecosystem maintained its growth reporting record highs.
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The sector which continued to see strong interest from Venture Capital investors saw $517M in funding in 2022, up by 3.2% from its level in the previous year. Stripping of the impact of the MEGA deal reported in 2021, funding grew by 35.7% year-on-year. Looking deeper into the year, Q1 was the best performing quarter in 2022, echoing the performance of the overall MEAPT, while Q3 was the slowest as the quarter captured the impact of the ongoing economic turbulence and the effect of the summer months.
Investors saw a remarkable rise from 123 in 2021 to 160 in 2022. In a look at the breakdown, Venture Capital firms were the highest contributors to the investor pool with 52%. Interestingly, all round sizes saw a positive evolution in active investors, reemphasizing the strong investor interest in the country’s growing ecosystem. The highest increase came from round size $5M-$20M.
M&A activity of Egyptian startups reported a record of 17 transactions. These represented 24% of the all-time-high 70 exits reported in the MENA region in 2022. While exits are usually a sign of maturity, it is still unclear if the exits taking place in the region are an aftermath of the liquidity crunch as startups might be struggling with funding and investor payback.
What’s in the Report?
This yearly report provides a comprehensive overview and a deep dive into the Egyptian venture capital and funding investment space and includes the following:
• A 5-year analysis of Egypt’s venture funding evolution, with a focus on 2022 country and industry performance benchmarks
• Top 20 investor ranking, together with their number of investments in 2022
• Top 20 startup funding rounds that were closed during the analyzed period, as well as the ticket size split of the entire deal flow
• A 5-year Egypt exit evolution with the top 10 last exits in Egypt-based startups
Who will benefit from the report?
This report is ideal for investors tracking startup activity, consultants looking to identify technology innovation trends, as well as government entities searching for investments.
This report was created with data from MAGNiTT, a comprehensive directory of technology innovation trends. The platform provides the following analytics tools:
• Investment directories, a comprehensive list of all startup venture funding across the Middle East, Africa, Pakistan, and Turkey
• Market Sizing Tools to visualize investment growth and trends across industries, geographies, and stage
• Comparison Tools to benchmark geographies, industries and investor performance
• Exit comparisons, looking at Mergers & Acquisitions from across the region
Learn how MAGNiTT's proprietary data can help your business. Contact us now!