Startups in MENA raise $643M surpassing global figures

In the first half of 2023, startups in the Middle East and North Africa (MENA) raised $643 million in late-stage fundraising, significantly more than the global average.

According to a report, startups in the Middle East and North Africa raised $643 million in a late-stage fundraising during the first half of 2023, significantly above global averages.

According to start-up data platform Magnitt's most recent industry analysis, this has led to a 20% annualized growth in the region's late-stage fundraising landscape since 2018, compared to a 49% decline internationally during the same period.

According to this study, late-stage fundraising refers to both stated and undisclosed investments made following Series A deals.

MENA has managed to remain a hotbed for funding, with mega deals — those valued at $100 million and above — accounting for more than 85% of late-stage investments in the first six months of 2023 alone, according to Magnitt. MENA has been able to continue to be a hub for funding even though economic unpredictability and macro factors have hindered investments on a global scale.

These large-scale transactions included those from MNT-Halan in Egypt ($260 million), Nana in Saudi Arabia ($133 million), and Floward in Saudi Arabia ($156 million).

Only the peak of $714 million in the second half of 2022 and $892 million in the second half of the previous year ($892 million) are higher since the pre-pandemic period in the second half of 2019, according to Magnitt data. The performance during the first half of the year is also the third highest since that time.