The State of Tech Investment in MENA
The Real Value of Digital Investments
NOTE FROM THE AUTHORS
We’re thrilled to share with you the first edition of Arabnet’s “State of Digital Investments in MENA” report, the most comprehensive research on investments in technology startups in MENA to date. The report has been 2 years in the making, and our team has painstakingly collected data about more than 50 funding institutions and 400 deals. While we are aware that there are many deals and investors that are not covered by the report, we believe that we have captured more than 70% of the market activity, bringing the entire industry significantly closer to a full picture than ever before. Our ambition is to update this report annually to highlight market growth and opportunities. We hope that the report encourages more investors to participate and be more open about their investments. We invite you to share your data - which will be kept strictly confidential - to include in the next iteration of the report to be published in Q1 2016, and which will be updated to reflect deals that took place in Q4 2015, currently absent from the report. We also welcome your feedback on our analysis and your ideas for new ways of looking at the data. Let us know what you think and help us make this report better and more useful for everyone!
SCOPE AND METHODOLOGY
This research report provides an overview of the technology investment landscape in the Middle East and North Africa (MENA) region. The first section focuses on the investor community, and examines the availability of funding sources across markets, ticket sizes, and how this has developed over time. The second section focuses on the investments that took place between 2013 and October 2015, and analyzes them by market, ticket size, industry and gender. The aim of the report is to provide a holistic perspective on the industry, identify trends and pinpoint underserved gaps in the market. The report findings are based on data collected from 31 investors and accelerators in the MENA region, specifically in the United Arab Emirates, Egypt, Lebanon, Jordan, Saudi Arabia, Morocco, Kuwait, Palestine, Tunisia and Bahrain. The report also aggregates information from publicly announced investments, and those listed on public databases such as Crunchbase, Angellist and others. The report analyzes a total of 404 investments in global and regional startups by regional investors, and in regional startups by global investors. However, due to the private and proprietary nature of the investments, there may be many deals that have not been included in the analysis. In the case where investments were announced without official investment values by either investor or startup, Arabnet has estimated the values based on history of involved investors, age of the company, and stage of the investment.
We would like to express our deepest appreciation to all the investors and accelerators, listed below, who provided us with all the necessary information to complete this report. 1. Arzan VC 2. Silicon Badia (Badia Impact Fund) 3. BECO Capital 4. Berytech Fund I 5. Capitalease Seed Fund I / UGFS
(Carthage Business Angels) 6. DASH Ventures 7. Dubai Silicon Oasis Authority 8. Fastforward 9. Flat6labs Cairo 10. Flat6labs Jeddah 11. Flat6labs Abu Dhabi 12. IMENA Group 13. Juicelabs 14. Kafalat ISME Co-fund 15. KAUST 16. KI Angel 17. Leap Ventures 18. Maroc Numeric Fund 19. MENA Apps 20. MENA Venture Investments
(Wamda Capital) 21. Middle East Venture Partners
(MEVP) 22. OQAL Members 23. Saned Partners 24. Silicon Oasis Founders 25. Speed@bdd 26. STC Ventures 27. Turn8 28. twofour54 29. University Venture Fund (UVF) 30. WIKI START UP 31. Y Venture Partners