MAGNiTT's Q3 2023 MENA Venture Investment Summary 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.
For a deeper analysis, contact our sales team to get a full access to our Q3 2023 MENA Venture Investment Premium Report.
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!
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The MEAPT region navigates a challenging year amidst a shifting macroeconomic landscape. The US Federal Reserve's commitment to a "higher rates for longer" approach, marked by four rate hikes this year, continues to deter international investors from engaging in Emerging Venture Markets. The region faces a multitude of challenges, including geopolitical tensions and currency devaluation in countries like Pakistan and Egypt. Oil-dependent economies face the double-edged sword of soaring oil prices while grappling with the impact of production cuts on GCC economic growth.
Compared to a slow Q2, the region has displayed a mild recovery. Funding witnessed a robust quarter-on-quarter surge of 87%, although deal flow activity continued to lag, declining for the third consecutive quarter. This funding resurgence can be attributed to the emergence of two MEGA deals in the quarter. The challenging economic climate rekindled investor interest in deals less than $1M. International investors maintained reluctance to shell out capital in the current economic environment, with eight of the top ten investors being regional.
The MENA region followed a similar declining trend, with QoQ recovery not entirely compensating for the YoY downturn in funding and deal activity during the year's first nine months.
Things to Consider in Q4
As we move forward, the potential for a MEGA round to influence Q4 funding outcomes remains susceptible. Additionally, several funds were announced recently, underscoring a focus on the MENA region. However, the timing and extent to which this dry powder materializes into investments will be a crucial metric to monitor. Q4 investment activity is a vital indicator of the grit of the VC landscape in 2024.
What is in the report?
The latest quarterly report offers strategic insights into the Emerging Venture Markets (EVM) and focuses on the VC performance of the MENA region. This report covers a 5-year analysis of EVM and MENA's venture funding evolution, with a specific focus on the country comparison and industry performance in 2023. You will get access to vital 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 verified VC 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.