Q1 2018 Analytics Report

The Q1 2018 Analytics Report summarises and analyses investments in MENA-based startups, including funding trends in countries, industries and funding stages, as well as comparisons and gap analyses. Q1 2018 saw $35.54M invested in 62 deals. Q1 2018 saw 14 less deals compared to Q1 2017. The total disclosed investments in Q1 2018 ($36M) was also down by $25M from Q1 2017 ($61M).

What is included in this report:

- Executive Summary: Snapshot including the key takeaways from the report.

- All Deals in Q1 2018: All MENA-based startups that received investment in Q1 2018, including country, industry, funding amount, funding stage, and investors.

- Q1 2018 Funding Overview: High-level overview and analysis of all MENA-based startup funding over time (monthly, quarterly, and yearly), including a gap analysis to the previous year.

- Funding Stage Breakdown: Analysis of the different stages of funding, such as early stage, Series A, Series B, and how they compare and change over time.

- Industry Breakdown: Analysis of the most popular industries by number of deals and funding amount in Q1 2018 and YTD, as well as how they change over time.

- Country Breakdown: Analysis of the most popular countries by number of deals and funding amount in Q1 2018 and YTD, as well as any trends over time.

- Top News in Q1 2018: Highlight of the top news of Q1 2018

Q1 2018 - $36M in disclosed funding, 62 # of deals

Q1 2018 comparison

Deals: 62 in Q1 2018

Disclosed Amount Invested: $35.54M in Q1 2018

Q1 2018 vis-à-vis Q4 2017:

• Deals: -14 fewer deals in Q1 2018 (62) compared to Q4 2017 (74)

• Disclosed Amount Invested: -$33M less invested in Q1 2018 ($36M) compared to Q4 2017 ($69M)

Q1 2018 vis-à-vis Q1 2017:

• Deals: +12 more deals in Q1 2018 (62) compared to Q1 2017 (50)

• Disclosed Amount Invested: -$25M less invested in Q1 2018 ($36M) compared to Q1 2017 ($61M)

Q1 2018 Investment Breakdown

Investment stage:

• 47 of the 62 deals took place at the Early Stage (i.e. SEED or Angel) (76%)

• 10 disclosed at Series A (16%)

• 3 disclosed at Series B (5%)

Geography:

• Highest number of deals: UAE (18)

• Highest amount of funding: UAE ($26M)

• Other notable investments: Egypt (15 deals) and Lebanon (10 deals)

Industry:

• Highest number of deals: E-Commerce (10)

• Highest amount of funding: Travel & Tourism ($12.5M)

• Number of industries: 20 different industries

MAGNiTT Q2 Predictions

Investment:

• See an uptick in investments leading up to and during Ramadan (before the summer lull)

• Expect Q2 to have an increase in activity in number of deals and amount invested across the MENA Region

• Await confirmation of VCs to close their new funds to start deploying

• Await public disclosure of several deals that have been closed, but not disclosed

• Discuss whether CAREEM is doing a $500M late stage fundraise. This would put MENA firmly on course for a record year of funding.

Venture Capital Firms

• We have noted the emergence of new family offices playing in the VC space

• Existing VCs in KSA, Egypt & UAE are actively looking for opportunities to invest

• TechStars Demo day, ArabNet competition, MiT Finals to take place in Q2

Analytics Reports