This week saw a host of innovative companies raise substantial funding in Dubai, acting as a superb signal of the dynamic startup ecosystem to be found in the city. Ranging from clean beauty through to sustainable energy and Web3 technology, such developments signal Dubai’s rise as a global hub for both entrepreneurship and investment. In this edition, we also cover Cypher Capital’s strategic investment into the DeFi space and FasterCapital’s committed funding round for female-led startups in celebration of Emirati Women’s Day 2024.
PC: Forbes
1) Powder Beauty Raises Pre-Series A Funding
Dubai-based Powder Beauty, a female-led startup in the clean beauty industry, has announced the closing of an undisclosed amount in pre-Series A funding. This was led by the Sophia Collective and NKHEL, joined notably by Maha Taibah of Shark Tank Arabia, hence the list goes on. The funds will be used to expand into the Saudi market and make it a leading brand in the Middle East.
2) Hodler Investments Sets Up $500 Million DEI Fund
Announced from its headquarters in Dubai Silicon Oasis, Hodler Investments has created a $500 million Digital Energy Infrastructure Fund. Destined for the Middle East, Africa, and North America, this fund puts up targets on sustainable energy innovation. In all, the DEI Fund soft commitments stand at up to $100 million with the aim of zero emissions throughout its portfolio, an investment strategy that dwells with fintech, web3 blockchain, and AI technologies.
3) myco Closes US$10 Million Series A Funding
Web3 live-streaming platform myco announced that it has closed a US$10 million Series A funding at a post-money valuation of US$80 million. The round welcomed major investors from MENA, North America and Europe including Daman Investments and Republic Crypto. Coming off the back of a profitable fiscal year, myco intends to use the funds to continue its strategic expansion into the fast-growing Web3 space.
4) Cypher Capital Invests in Echelon’s DeFi Solutions
Dubai-based Cypher Capital has turned into the first institutional investor in the MENA region to enter the world of DeFi after participating in a $3.5-million seed funding round for Echelon, a decentralised lending protocol that also saw key contributions from Amber Group, Laser Digital, and Saison Capital.
Commitment to Innovation in DeFi
Cypher Capital’s investment underlines the commitment to move the DeFi ecosystem and blockchain technology forward. Echelon will improve capital efficiency and integrate with other DeFi applications on Move-based blockchains like Movement and Aptos. Harsh Agarwal, Investment Lead at Cypher Capital, lauded Echelon for its innovative approach and shed light on how it is going to create high-performance lending markets.
5) Emirati Women’s Day Funding Initiative by FasterCapital
FasterCapital is offering a special funding round to women entrepreneurs in the UAE on Emirati Women’s Day 2024 as part of its effort to further encourage innovation and entrepreneurship among Emirati women.
Investing in Female-Led Startups
This funding round could help female-led startups in the UAE scale up by overcoming financial distress and expanding operations. This move is also a part of the plan by the UAE, to increase gender balance and economic diversification. “There is a pressing need to empower female entrepreneurs if the economic and social development of the UAE is to be advanced,” Hesham Zreik, chief executive officer at FasterCapital, said.
Conclusion
This week’s funding activities signalled that Dubai was keen on innovation and inclusion in the financial sector. This in turn spells out the dynamic manner with which the region nurtures growth and empowerment through investments-in particular, the investment of Cypher Capital in DeFi and support for female entrepreneurs by FasterCapital. Dubai has clearly strengthened it’s position as a leading global innovation and entrepreneurial growth hub, moving in with large-scale investments in clean beauty, sustainable energy, and Web3 technology. These portend great developments for the future as startups within the region start to grow and expand.
