Egypt saw an increase of 12% and KSA a 9% increase in startup funding in H1 2018, emerging into the top 3 countries across MENA.
Magnitt, MENA’s largest data provider for startup information, just dropped its H1 2018 Venture Investment report, an 80-page report covering key findings from the MENA region’s ever imminent startup landscape. The report highlights the record number of transactions, despite a drop in disclosed startup funding over the course of six months.
Dubai-based Magnitt was founded in 2014 by Philip Bahoshy, and is currently the largest online database for startups across the MENA region. They provide monthly reports for subscribers to track industry trends and access insights in the region.
"We have seen regional initiatives like visa regulation changes in the UAE, launch of the new Fund of Funds in Bahrain and changes to foreign ownership structures in KSA as examples to further support Entrepreneurs in the region," reflects Bahoshy. "While challenges exist, similar to all emerging ecosystems, the public and private sector are working closely together to help solve for many founders pain points.”
Unlike past Venture reports, this year's H1 report includes calculations to estimate the funding amounts of undisclosed deals. For starters, 141 investments were made in H1 2018, which marks a 12 percent increase on the number of deals for the same 6 month period in 2017, and total disclosed funding is down 43 percent to $112 million compared to the same period in 2017 when stripping out Careem’s $150 million investment in H1 2017, finally In the first 6 months of the year, 23 percent of investments were shared with undisclosed figures, up 6 percent from H1 2017. The UAE continues to account for the lion’s share of startup deals 32 percent and investment 59 percent. Egypt saw an increase of 12 percent and KSA a 9 percent increase in startup funding in H1 2018, emerging into the top 3 countries across MENA. E-commerce still remains the most active industry with regards to investment in H1 2018, accounting for 12 percent of all transactions and 16% of disclosed funding.
The report specifically presents an in-depth review, including a full list of all investments and investors, as well as analytics on the investment landscape split by geography, industry, and stage. "We are pleased to launch the H1 Venture Funding report in which we have used new analysis to capture undisclosed funding across the region," Bahoshy comments. "This allows for more accurate estimates on the venture funding space as it continues to show signs of development and growth.”
Main Image: Team behind Magnitt, led by Philip Bahoshy.
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