FIGURE 10: PERCENT VALUE OF INVESTMENTS BY STARTUP BUSINESS MODEL
Diving deeper and analyzing by value of deals, transactional startups raised the bulk of investment dollars (81%), driven by the major rounds of Souq.com, Careem, and Jumia, while the agency business model (1%) received the smallest proportion. Technology, software as a service, and media business models have captured roughly similar proportions (5-7%) of all dollars invested over the years, among which Cequens, a technology business, raised the biggest round worth $53 million.
FIGURE 8: PERCENT VALUE OF INVESTMENTS BY TICKET SIZE
Although early stage deals are the biggest contributors to the number of deals conducted, they naturally contribute the least to the value of investments by ticket size. 2016 was a record year for growth stage deals, which captured 84% of all dollars invested – the highest share in the past 4 years, driven by Careems’ $350 million round and Souq.com’s $275 million round.
