Mapping the Trend of Cross-Border Venture Capital Investments in MEAPT
The 2019-2023YTD Cross-Border Venture Investments in MEAPT Brief looks at the growing trend of cross-pollination in the era of globalization.
Cross-border investments in the venture space have become an integral part of the global economy, fueling innovation and fostering economic growth. As startups increasingly break down geographical barriers, investors are seeking opportunities beyond their home markets to capitalize on emerging trends and disruptive technologies. This trend has been particularly prominent in the tech sector, where cross-border venture investments have surged in recent years.
Venture capitalists are now looking beyond their local ecosystems and traditional investment destinations to identify promising startups in new and untapped markets. These investments not only provide financial backing to startups but also facilitate knowledge transfer, collaboration, and access to global networks. By supporting cross-border ventures, investors are diversifying their portfolios and gaining exposure to high-potential startups operating in different regions. The MEAPT VC ecosystem was fueled particularly by the pandemic crossing the $7Bn mark for the first time in 2021. It has been on the VC radar of international investors who want to join the bandwagon of investing in emerging markets and bank on the currently growing ecosystems of Asia and Africa.
At the same time, investors from within the MEAPT region have been expanding their portfolios by investing in startups hailing from the other side of the border. Governments want to promote foreign investment as it leads to job creation and international exposure, ultimately contributing to the growth of GDP and foreign direct investmentment inflows. This has led countries like the UAE, KSA, and The Big Four to introduce several initiatives and host conferences like LEAP and Dubai FinTech Summit. Middle Eastern countries specifically are striving to move away from their dependency on oil and invest in technological innovation. UAE set up the Dubai International Financial Center to position itself as the next FinTech hub of the region. On the other hand, Saudi Arabia is revisiting its regulatory structures to entice investors from across the region and to see to fruition its Vision 2023.
The African, Pakistan, and Turkish ecosystems are relatively untapped and have immense potential owing to the burgeoning youth demographic and the growing rate of internet penetration. A number of Middle Eastern investors like Shorooq Partners, VentureSouq, and Mubadala Ventures have been engaging in cross-border venture capital investments. Among African investors, 4DX Ventures and LoftyInc Capital Management are active backers of the MEAPT VC ecosystem.
Considering the current economic climate, cross-border venture investments can provide diversification of risk, economic stimulation, and bargain opportunities as economic downturns often lead to a decline in asset valuations. While these investments are a sign of maturing ecosystem, they come with their own set of challenges. Cultural nuances, legal complexities, and varying market dynamics require investors to carefully assess risks and devise strategies to mitigate them.
What’s In The Brief?
This research brief provides an overview of the venture capital landscape of the MEAPT region and it delves into the growing trend of cross-border venture investments as investors look to diversify their portfolio in an era of globalization.
Who is it for?
Whether you’re a private investor, a VC, an investment company, a CVC, or working in corporate, this report gives an overview of the ecosystem and caters to a diverse audience including any curious minds who want to use the yearly, quarterly and monthly charts in this report to track investment activity.
You can also see in which country and industry the investment activity focused in terms of deals and capital deployed, allowing you to leverage insights and make wise choices.
The report can also be used by consultants looking to identify technology innovation trends and who will find it valuable to look at the evolution of M&A activity and concentration of acquirers/acquired startups.
Last but not least, government entities searching for investment opportunities will also find valuable information to make informed decisions.
Where is this information from?
The report was 100% created using data from MAGNiTT. MAGNiTT is the leading VC verified data platform and offers a comprehensive directory of technology innovation trends. Our unique SaaS solution includes investment directories listing startup venture funding across the Middle East, Africa, Pakistan, and Turkey, and now Singapore. By using MAGNiTT, you will also get access to market sizing tools to visualize investment growth and trends across various industries, geographies, and stages, as well as comparison tools for benchmarking geographies, industries, and investor performance. Furthermore, MAGNiTT offers exit comparisons by examining mergers and acquisitions.
Learn more about MAGNiTT's Data Methodology.