$250M fund launched to support tech startups
dubai — Middle East Venture Partners (MEVP) announced on Wednesday the launch of its third venture capital fund — the Middle East Venture Fund III (MEVFIII).
The new fund with a target size of $250 million will invest in innovative early-stage and growth-stage tech companies in the Mena and Turkey region.
The launch of the fund follows the announcement in May 2017 that Mohamed Alabbar, chairman of Emaar Properties, and MEVP have entered a strategic partnership to create one of the leading venture capital investment platforms in the region.
MEVP chief executive Walid Hanna said startups in this part of the world are hungry for equity and capital. “If you look at this region, it is completely underserved.”
Alabbar said a new generation of tech-savvy young digital entrepreneurs is driving the growth of this region’s digital ecosystem.
“Their innovative ideas can bring transformational changes to the local economies. MEVP’s new fund will support emerging local tech companies with dedicated capital, specialised expertise and operational support, enabling them to reach their next level of growth,” Alabbar said.
Latest available data shows that venture capital investment in Mena was less than 0.03 per cent of the GDP in 2016, significantly lower than 0.2 per cent in India and 0.4 per cent in the US. This lack in venture capital funding is in stark contrast to the tech savviness of consumers and businesses in Mena and Turkey and their growing demand for advanced and competitive technology products and services.
The target fund size of $250 million makes it one of the few independent regional venture capital funds capable of committing large investments to meet the growth requirements of tech companies in Mena and Turkey.
Hanna said MEVP is a pioneer in the venture capital investment industry in this region. “Since 2010, we have been committed to supporting regional tech entrepreneurs to grow their businesses into market leaders. We have a current investment
MEVP’s new fund will support local tech companies with capital, specialised expertise and operational support Mohamed Alabbar, Chairman of Emaar Properties
portfolio in over 40 ventures, which has created more than 1,100 quality tech jobs for the region’s youth.”
“Despite the market evolution in recent years, there remains a significant lag in the amount of capital available for growth stage venture capital funding. MEVFIII aims to address this gap: It will help accelerate the growth of the venture capital ecosystem in meeting the growing demand for technology products and services,” said Hanna.
He said MEVP would seek passionate tech entrepreneurs who have the potential to build the nextgeneration of tech ventures and transform their ventures into market leaders.
— issacjohn@khaleejtimes.com