- The ISSF invested $2 million in VentureSouq Fund II, focusing on Jordanian startups, particularly in the fintech sector.
- Established in 2017, the ISSF is a $98 million fund dedicated to supporting early-stage startups and SMEs in Jordan.
- Founded in 2013, VentureSouq manages funds focusing on FinTech and ClimateTech and holds a global investment portfolio.
- Leaders like Mohammed Al Muhtaseb and Sonia Gokhale emphasize the strategic importance of this partnership in enhancing the Jordanian fintech sector and fostering regional innovation.
- The collaboration aims to boost job creation, drive economic growth, and provide Jordanian startups with access to GCC and global markets.
Jordan’s Innovative Startups and SMEs Fund (ISSF) has invested $2 million in VentureSouq Fund II, managed by the UAE-based venture capital firm, VentureSouq.
This investment underscores the ISSF’s commitment to bolstering the Jordanian startup ecosystem, with a particular focus on the fintech sector.
ISSF and Its Mission
Established in 2017, the ISSF is a $98 million fund registered in Jordan as a private shareholding company. It is the largest investment fund of its kind in the country, dedicated to facilitating funding for early-stage Jordanian startups.
The ISSF aims to nurture innovation and support the growth of Jordan’s small and medium-sized enterprises (SMEs).
VentureSouq’s Background
VentureSouq, founded in 2013 by Sonia Gokhale, Sonia Weymuller, Suneel Gokhale, and Tammer Qaddumi, is a venture capital fund manager based in the MENA region.
The firm manages thematic funds with a current investment focus on FinTech and ClimateTech. VentureSouq’s portfolio is global, reflecting its expansive approach to investing in promising technologies and innovative companies.
Strategic Partnership and Investment
The $2 million investment by the ISSF in VentureSouq Fund II was finalised in June. This partnership highlights the ISSF’s ongoing dedication to supporting Jordanian startups.
As part of the agreement, VentureSouq is required to reinvest in Jordanian companies at a multiple of their initial investment, reinforcing their commitment to the local ecosystem.
Key Leaders Perspective
Mohammed Al Muhtaseb, CEO of ISSF, is proud of the partnership with VentureSouq. VentureSouq shows a strong belief in the Jordanian ecosystem by investing in local companies.
The FinTech sector has been the most active vertical in the MENA region for the past four years. It captures 52% of total MENA VC funding. Jordanian FinTech startups have significant opportunities to thrive.
Partnering with a FinTech-focused fund like VentureSouq in the ISSF portfolio is a strategic opportunity.
This boosts the Jordanian FinTech ecosystem and aligns with national efforts to develop this sector. The Central Bank of Jordan also supports initiatives in the FinTech space.
Sonia Gokhale is the Co-founder and General Partner at VentureSouq. She believes the Jordan ecosystem is a hub for high-quality talent. It is a secure and stable breeding ground for early-stage companies.
It is a remarkably accepting market that adopts technology easily. VentureSouq appreciates partners such as the ISSF. They share the same vision and drive as VentureSouq to advance the regional ecosystem.
Maan Eshgi, General Partner at VentureSouq, emphasizes the importance of this partnership. He states that the partnership with the ISSF will significantly enhance their efforts in Jordan.
This partnership plays a crucial role in driving their financial success. More importantly, it brings them closer to their overarching goal. Their goal is to serve as a regional unifier. They aim to provide their portfolio companies with swift access to GCC and global markets.
Focus on FinTech
The fintech sector has been particularly vibrant in the MENA region, capturing over half of the total VC funding in recent years. Jordanian fintech startups are well-positioned to leverage this trend, benefiting from both the strategic support of ISSF and the regional expertise of VentureSouq.
This collaboration is expected to foster innovation, create jobs, and drive economic growth in Jordan.
Altogether, the investment by ISSF in VentureSouq Fund II represents a significant milestone for Jordan’s startup ecosystem.
By focusing on the burgeoning fintech sector and committing to reinvesting in local companies, this partnership promises to drive substantial growth and innovation.
With strong leadership and a shared vision, ISSF and VentureSouq are poised to make a lasting impact on the regional startup landscape.
Last Updated on June 14, 2024 by Safiya K
