"Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending on investors' strategic goals." Global Impact Investing Network definition
Produced in collaboration with Saudi Aramco Entrepreneurship Center, the 2021 MENA VC Impact Investment Report attempts to gauge the state of impact investing in MENA since 2016. It compares impact investing activity in the region to activity within the larger Venture Capital ecosystem. The report also elaborates on the country and sector breakdown, and investor participation as it relates to Impact investing.
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Impact-driven startups in the MENA region raised $444M across 403 deals between 2016 and Q3 2021. Even though this represented a funding growth rate of 15%, capital invested into Impact-driven startups only accounted for 7% of all VC investment across MENA. Yet, Jordan found itself in a unique position where a fourth of every dollar invested was deployed into Impact ventures.
The Energy sector played a key role in Impact VC investments across MENA. 95% of all funding invested in the sector benefitted startups within the Impact ecosystem. Impact-driven startups within the EdTech and Healthcare sectors accounted for the highest share in total Impact VC deals closed in MENA from 2016 to Q3 2021.
Check out a quick overview of the report's key takeaways below.
2021 MENA VC Impact Investment Report - Key Highlights
- $444M was invested across 403 deals closed by Impact-driven startups across MENA between 2016 and Q3 2021
- Startups based in KSA closed 20% of all Impact deals, while startups based in the UAE raised 37% of Impact VC investments
- The EdTech and Healthcare sectors collectively accounted for 40% of all Impact transactions registered in MENA from 2016 to Q3 2021
- 2021 YTD has saw the highest number of impact-driven startups announce exits in a single year
- Six investors backed over 12 funding rounds closed by Impact-driven startups
This report was created with data from MAGNiTT, which is a comprehensive directory of emerging tech and new business strategies through tools like:
• Investment directories, a comprehensive list of all startup venture funding across the Middle East, North Africa, Pakistan and Turkey
• Market sizing tools to visualize investment growth and trends across industries, geographies and stage
• Startup resources including a deal flow tool for applications to leading Venture Capitalists for investment
• Exit comparisons, looking at Mergers & Acquisitions from across the region
Keep the region's latest venture data on your fingertips. Access our interactive data charts on Emerging Venture Markets
About the Sponsor
Wa’ed was established in 2011 as the entrepreneurship arm of Aramco to provide Saudi-based entrepreneurs with end-to-end services in mentoring, incubation, loan financing, and venture capital investment having had deployed more than $100 million in the fo