Q3 2018 MENA Venture Investment Report

$500 |
Analytics Reports

The Q3 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. Q3 2018 saw $82M invested in 62 MENA-based startups. Total estimated funding, including calculations for undisclosed deals, over the first 9 months of 2018 amounted to $325M.

 

To download the free Q3 2018 Venture Investment Summary click here: Report Summary

 

The Q3 2018 MENA Venture Investment Report does a full deep dive into the MENA startup ecosystem across the region. The table of contents for the 60+ page report can be found here:

 

● Executive Summary

● Funding Overview

● Country Breakdown: Historical review by industry, funding stage, deals & investors: UAE, Egypt, Lebanon, Jordan & KSA

● Industry Breakdown: Historical review by geography, stage, deals & investors: FinTech, E-commerce & Transport

● Funding Institutions: List of Funders, breakdown by stage

● Exits: Historical review and details on all exits in Q3 2018

● Top Deals in Q3: Commentary and breakdown of the top deals in Q3

● Methodology & Definitions

What is included in this report:

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

- All Deals in Q3 2018: All MENA-based startups that received investment in Q3 2018, including country, industry, funding amount, funding stage, and investors.

- Q3 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 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 Q3 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 Q3 2018 and YTD, as well as any trends over time.

- Top News in Q3 2018: Highlight of the top news of Q3 2018

 

 

Summary:

  • ●  The amount invested in MENA-based startups in Q3 2018 was roughly on par with Q2 2018, as $82M was invested across 62 deals.
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  • ●  Deal activity declined in Q3 2018 relative to Q2 2018, although there was a pick-up of announcements and activity in September 2018.
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  • ●  Total estimated funding, including calculations for undisclosed deals, over the first 9 months of 2018 amounted to $325m. This is down $95m from the same period in 2017, which amounted to $420m (excl. Careem’s $150m investment in June 2017).
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  • ●  The UAE continued to account for the largest share of startup deals (29%) and investment amount (61%) in 2018 YTD, with the emergence of the Egyptian, Lebanese, Jordanian, and Saudi Arabian ecosystems
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  • ●  2018 YTD most active venture capital investors were 500 Startups (28), MEVP (12) Arzan Capital (9) being the most active by number of investments

 

1. 2018 YTD Funding:

●  239 investments were made in the first nine months of 2018, which marks a 4% decrease compared to the number of deals for the same 9-month period in 2017.

●  In 2018 YTD, total disclosed funding in startups was down 38% to $238m compared to the same period in 2017 (when stripping out Careem’s $150m investment in June 2017).

●  37% of investments were shared with undisclosed figures in 2018 YTD, up 20% from the same period in 2017.

●  Total funding in 2018 YTD, including calculations for undisclosed deals, amounted to $325m, which is down $95m from the same period in 2017.

2. Funding Institution activity:

  • ●  500 Startups remains the most active venture capital investor by number of deals, accounting for 28 investments, followed by MEVP with 12 deals and Arzan Capital with 9.
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  • ●  Moreover, accelerator programs remain a key stakeholder in supporting early-stage startups, with Flat6Labs Cairo graduating 18 firms, as well as Oasis 500, Flat6Labs Bahrain, Flat6Labs Beirut and Flat6Labs Tunis graduating cohorts of 8 startups each.
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  • ●  Emerging active investors to the MENA region in 2018 include Flat6labs Bahrain, Kingsway Capital, Cedar Mundi, Phoenician Funds and Fikra Labs.

3. Investment Breakdown:

  • ●  The UAE continued to account for the largest share of startup deals (29%) and startup funding (61%) in 2018 YTD.
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  • ●  Both Egypt and Lebanon saw an increase of 4% in the number of startup deals in the first 9 months of 2018 compared to H1 2018, reflecting increased activity over the summer.
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  • ●  E-commerce still remains the most active industry with regards to startup investment in 2018 YTD, accounting for 12% of all transactions and 23% of disclosed funding.
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  • ●  Early stage investment accounted for 77% of all transactions in 2018 YTD, down 1% from the same period in 2017, while accounting for only 19% of the total funding amount.
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  • ●  2018 YTD saw 34 Series A transactions and 6 Series B deals announced. 

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