- Startups in the MENA region raised $88.7 million in February, showing a 2% increase from the previous month but an 88% decrease compared to last year.
- The UAE led in investment with $65.6 million raised across 22 deals, notably driven by Flare Network’s significant portion of funding.
- Web3 providers secured $39 million, led by Flare Network, while foodtech emerged as the top sector with $21 million in funding, including a notable $12 million for The Cloud’s Series B round.
According to reports from Wamda and Digital Digest, startups in the Middle East and North Africa (MENA) region raised a total of $88.7 million in funding through 37 deals in February. This marks a modest two per cent increase in deal value compared to the previous month. However, it also signifies a significant 88 per cent decrease from the funding raised during the same period last year.
Leading the investment landscape, the UAE maintained its position with startups raising $65.6 million across 22 deals, with a significant portion directed towards the Flare Network.
Saudi Arabia followed closely behind, with startups securing $16.3 million across seven transactions. Meanwhile, only two Egyptian startups managed to raise $4.6 million during the same period.
Notably, Web3 providers emerged as the standout performers this month, securing a total of $39 million in funding across three rounds. Flare Network led the pack with a substantial $35 million investment.
In terms of funding, foodtech led the way this month, securing $21 million in two deals, with $12 million allocated to The Cloud’s Series B round. Meanwhile, FinTech saw five startups raise $6.9 million, and logistics startups received $5.4 million in investment.
Seed-stage startups continued to attract significant investment, with 11 companies raising a total of $25.5 million.
The business-to-consumer (B2C) sector received the largest share of funding, with $55 million distributed across 16 transactions. On the other hand, 17 startups in the business-to-business (B2B) domain secured $18.4 million in funding.
As per usual trends, male-led businesses dominated the industry, accounting for over 55 per cent of the total transaction value. Mixed-gender founders received 44.6 per cent of the funding, while female-led startups secured only 0.2 per cent of the total funding amount.
Last month, 14 startups opted not to disclose the amount they raised. In response, we assigned a conservative estimate of $100,000 to 12 of them. These startups include Bookr, PIESHIP, PhysioHome, Hayi, Coino Live, Promenade, NoorNation, TextTeo AI, AR Viewz, Boltable Studio, overwrite.ai, and CAI Concierge AI.
Additionally, Magpie Protocol and Groene Point each received an allocation of $1 million for their undisclosed funding rounds. This decision was made to ensure transparency and provide clarity regarding the fundraising activities of these startups. While the exact amounts remain undisclosed, the assigned figures offer insight into the financial support these startups received to fuel their growth and innovation initiatives.
Venture Capital Activity: Recent Developments
Last month witnessed significant activity in the venture capital space across the Middle East and North Africa (MENA) region. In the UAE, the Falcon Foundation was established, committing $300 million to the development of open-source generative AI models. Meanwhile, Jordan’s Innovative Startups and SMEs Fund (ISSF) allocated $5 million to MSA Novo, a MENA-focused fund.
COTU Ventures, an early-stage venture capital firm based in the UAE, made headlines with the launch of its inaugural $54 million fund. Additionally, Globivest, a Lebanese female-led VC, completed the second close of its first fund. Meanwhile, Sawari Ventures from Egypt announced plans to launch a $150 million fund to support local businesses, although no specific timeline has been provided.
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Last Updated on March 8, 2024 by Safiya K
