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VC investment in come out markets such as the Middle East and North Africa ( MENA ) plummeted by over 40 % compare to 2023,according to a new report . The information mirror the wider global trend of reduced VC funding in the last two geezerhood , specially for non - AI fellowship .
The total raised across the market surveyed was $ 9.1 billion in 2024 , a 41 % decline twelvemonth - on - year . moreover , there was a 20 % drop in deal activity , with the number of spate fall to 1,527 .
However , there may soon be signs of recovery as interest rates go down globally , lead in lower inflation .
The trends are sketch in the2024 Venture Investment Reportfrom MENA - base research group MAGNiTT . The report looked at VC investments in the Middle East , Africa , Southeast Asia , Türkiye , and Pakistan .
In the MENA region , inauguration raised $ 1.9 billion in 2024 , a 29 % decline annually . Still , this was a small decline when set against that seen in Southeast Asia ( 45 % ) and Africa ( 44 % ) .
Plus , funding floor in 2024 were still higher than they were in 2020 , mean venture interest in the area continues to grow — leave you answer for for the surge in the boom years of 2021 and 2022 .
There was a 7 % increase in hand count ( 571 ) and the turn of investors increase by 18 % ( to 475 ) compared to a year in the first place .
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And 47 % of all investments were in the $ 1 million to $ 5 million range , betoken a shift to early - stage investments . However , MENA experienced a pregnant declivity in former - microscope stage deals .
Across MENA , Africa , Southeast Asia , Türkiye , and Pakistan , fintech continues to put in a strong screening , raking in $ 3.9 billion in support in 2024 , reflecting that the sector is doing well in issue markets , where more developed fiscal services are sparse on the ground .
The report card noted that this presents an opportunity for M&A body process across geographies within the region .
There was a predictable split , where external investors focalise more on late - level deals , such as Insider ’s $ 500 million round and Tyme ’s $ 250 million Series D. Such investor made up 53 % of the 475 investors that backed startups in the region . Meanwhile , local investors tended to vex to early - point deals .
This is all in the context of use of global exits dipping by 32 % to just 94 in 2024 compare with a year in the first place , and late - stage capital becoming harder to come by as public markets stayed shut .
Philip Bahoshy , CEO at MAGNiTT , commented in a statement : “ We anticipate rate cuts to set about boosting capital handiness within the next 6 - 9 calendar month , paving the way for a strong funding environment in 2025 . ” He said that overall , 2024 was “ probably the bottom of the curve ” in price of the funding downturn .
He added that the UAE , Saudi Arabia , and Qatar saw “ increase tidy sum activity year on twelvemonth ” despite a lag in total capital deployment . The full number of investor also increase importantly in the MENA region , demonstrate that investors , especially external I , may have increasing confidence in the region ’s startup .
