According to the latest reports from MAGNiTT and Wamda, the MENA startup landscape saw a significant boost in investment during the first quarter of 2023, with startups raising $1.1 billion over the first three months of the year, representing a 17% increase quarter-on-quarter. However, there was a notable reduction in fundraising in March alone, with startups raising $247 million across 67 deals, a drop of 67% from the previous month and 17% year on year.
Saudi Arabia topped the investment charts in March, raising $175 million in 20 deals, thanks to fintech startup Tamara, which raised $150 million in a debt funding round led by Goldman Sachs, while the UAE came in second, raising $59 million in 18 deals led by startups in the fintech, foodtech, and edtech sectors.
The report found a significant lull in post-seed venture funding in March, while early-stage venture funding attracted investors, with fintech accounting for the majority of venture capital activity in March at 73%, followed by foodtech and then edtech which were responsible for the second and third highest funding with US$19 million and US$14 million respectively, with all three sectors contributing to 86% of total capital during March.
The gender gap between the male-female founders of startups persisted, with male-founded startups attracting the majority of capital, raising US$244.5 million, equivalent to 98.8% of the total amount. In comparison, startups founded by women or men and women raised the remaining 1.2%.
Last month, eight companies declined the disclosure of funding details: Almatar, Vuz, Nuqtah, telfaz, Amplifidor, HORIZOONX, Ygii, and Neutrality. one.
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