Arabnet - The Quarterly - - Entrepreneurship -

The sta­tus of the VC ecosys­tem in the re­gion to­day to be nascent rel­a­tive to its global coun­ter­parts, but with vast po­ten­tial given up­ward trend­ing macro fac­tors. Much of the growth in the ecosys­tem to­day is driven by im­prov­ing macro fac­tors within the re­gion: In­creas­ing smart­phone adop­tion, in­creas­ing in­ter­net con­nec­tiv­ity, in­creas­ing adop­tion of cash­less fi­nan­cial trans­ac­tions, grow­ing pop­u­la­tion of “un­der 30”/”tech-savvy” co­hort. As a re­sult of these im­prov­ing macro trends, we’re al­ready wit­ness­ing growth of the re­gional ecosys­tem as in­vestors, both lo­cal and in­ter­na­tional, rec­og­nize the po­ten­tial of star­tups to cap­i­tal­ize on them. With that said, we do be­lieve the re­gional tech­nol­ogy sec­tor lacks Se­ries B and late stage growth cap­i­tal. We see in­ter­na­tional in­vestors reap­ing the re­wards of the op­por­tu­nity in later stage fund­ing in the MENA re­gion. Such “cap­i­tal void” high­lights a com­pelling op­por­tu­nity for MEVP, with the re­gion’s largest VC fund (newly launched MEVF III) to play a sig­nif­i­cant role mov­ing for­ward.

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