MAGNiTT's Q3 2023 MENA Venture Investment Report is out! As every quarter, we examine the continued impact of the economic challenges on the venture capital ecosystem of the Middle East, Africa, Pakistan, and Turkey (MEAPT) region with a focus on MENA. Access it now for all the latest data and highlights! Don't have access? Reach out to our team!
Want to get even more insights? Register here for our next webinar on the performance of the VC markets in the Middle East, Africa, and Pakistan (MEAPT) region in Q3 2023!
Our CEO Philip Bahoshy will be hosting it on October 26th, 3PM. Don't miss out!
The MENA region has been bearing the burden of a challenging macroeconomic environment and ongoing geopolitical tensions over the past two years. At the same time, Central Banks in the region have been following the path of the US Federal Reserve raising interest rates four times this year-to-date with the potential of additional hikes to year-end. The Macro and high rates environment combined to constrain liquidity as safe-haven assets became more appealing. At the level of geographies, oil cuts are expected to have an impact on the growth of oil-producing economies, however, diversification strategies are paying off well with non-oil growth maintaining an upward trajectory in countries like Saudi Arabia. Egypt, on the other hand, is suffering from the impact of soaring inflation which roamed around 40% on an annual basis, and currency devaluation which yielded all-time lows for the Egyptian Pound.
The performance of the VC market in the MENA region still lingered near its lower bound. While funding saw a QoQ uptick of 32% in Q3, deal flow saw its third consecutive QoQ drop standing at its lowest level since Q2 2017. In a more comprehensive view, both deals and capital deployed in the space retreated by over 40% YoY in the first nine months of 2023. At a country level, Saudi Arabia led in funding with a share of 39% of the total and UAE was on top in deals contributing by 33% to the total 286 deals closed in the first three quarters of this year.
Pro Tip: Subscribers can access the Platform's Advanced Analytics tools to make customized cuts by country, industry, stage, and many more spanning MENA, Africa, South East Asia, Turkey, and Pakistan: Contact Sales to learn more.
What’s in the Report?
The report highlights the performance of VC space in the MENA region with a focus on Q3 2023. It includes:
Funding & Deal Evolution
Deal Share by Round Size
Valuation Evolution by Early Stage
Funding & Deal Evolution by Country
Funding & Deal Evolution by Industry
If you'd like to access the full report, contact [email protected].
Things to Consider in Q4
Moving forward into Q4, we realize a number of events happening towards which discussions can be started and deals can be closed. Multiple large-scale funds are being announced and there is an availability of dry powder. However, it is still unclear if the availability of capital will be translated into transactions during the coming quarter or be held back for 2024.
What is in the report?
The latest quarterly report offers strategic insights into the performance of the MENA VC ecosystem. This report covers a 5-year analysis of MENA's venture funding evolution, with a specific focus on the country comparison and industry performance in 2023. You will get access to precious information such as:
MENA Venture Funding Evolution: Get a detailed analysis of the past five years, highlighting the growth and development of venture funding in MENA with a focus on performance in Q3 2023.
Key rankings such as the Top 20 investors, Top 20 funding rounds, Top 10 last exits, and 5-Year exit evolution of MENA.
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.