What turned out to be a dramatic turn of events for the start-up ecosystem across the Middle East and North Africa, funding increased drastically in July 2024 and more than doubled by over 200%. Based on the latest data provided by Wamda and Digital Digest, the overall raised funds by the region’s start-ups surged to $ 355 million for the month. That reflects a massive 206% increase from June 2024 and a 260% surge compared to July 2023.
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Surge in Investment Volume
The stellar funding numbers for July represent a radical rebound from that of the previous months. The money raised by start-ups in July beat the combined investments of the previous month by $340 million. This surge not only reflects an uptick in investor confidence but also underlines interest, rejuvenated in start-ups across the region.
Country-Specific Highlights
Among the 38 start-ups that raised funding last month, UAE led the charge with 12 deals. Following UAE were Egypt and Saudi Arabia, which both had seven investments, while Jordan had six.
If ranked in terms of size of funds raised, the lead goes to Egypt, which raised $185 million across seven deals, a far cry from the $15 million raked in the previous June. This leap shows that, on the whole, Egyptian start-ups are growing strong and bodes well for the investment climate of the country.
Sector-wise Investment Breakdown
In July, the funding landscape was dominated by the fintech sector, with $180.8 million flowing in. Already, such a large investment pegs at the continuous interest and belief in the region’s financial technology solutions. Dominance from the fintech sector puts this industry at the centre of the region’s start-up ecosystem, with potential for disruptive effects.
Most significantly, $85 million worth of investments were made into web 3 technologies. This reflects the ever-growing interest in blockchain and decentralised technologies.
On a much smaller scale, there were big investments in cleantech, deeptech, and e-commerce compared to fintech and Web 3. Cleantech raised USD 37 million for green, environment-friendly innovation. Deeptech and e-commerce sectors raised USD 20 million and USD 15.7 million respectively, indicating continued faith in high-end technology solutions and online retail.
Looking Ahead
This substantial inflow of funds into startups in July 2024 shows an optimistic trend in the MENA region’s entrepreneurial ecosystem. Showing more and increasing will to back innovative ventures, especially in FinTech and Web 3, the region was destined to experience incessant growth and dynamism in its start-up ecosystem.
It means, therefore, that besides indicating good financial prospects for emerging start-ups, the shift in funding patterns also points to broader confidence in the region’s potential economically and technologically. Further, in line with continuous support and investment, the MENA region will further entrench itself as an upcoming entrepreneurial and innovation hub.
