UAE Continues to Hold the Top Spot
With an astounding $146 million over 11 deals, the UAE maintained its position as the MENA region’s best-funded startup ecosystem for November 2024. Eyewa and Lean Technologies made significant contributions to this amount, raising $100 million and $67.5 million, respectively. Saudi Arabia’s startup scene came in second with 23 agreements totalling $94 million.
Egypt’s Amazing Development Despite Obstacles
Egypt came in third place with eight startups raising a total of $16 million, a substantial increase over the $1.6 million raised the month before. Given the continued decline of the Egyptian pound and the accompanying geopolitical concerns, this spike is especially notable.
Momentum in Startup Funding by Region
Startups in the MENA region had strong growth in November, garnering $258 million in 46 deals. When compared to the previous month, this number represents an astounding 92% growth. But compared to the $764 million raised in November 2023, it also signifies a 196% drop. The difference shrinks to 32% when loan financing is subtracted from the amount from the previous year.
Highlights of the Sector: E-commerce Sets the Standard
Thanks to Eyewa’s significant fundraising round, e-commerce became the industry with the best performance. Fintech secured $80 million over four deals, but seven e-commerce businesses raised a combined $104 million. With $21 million raised across seven fundraising rounds, SaaS companies also had a successful month.
Trends in Investment: Pay Attention to Later-Stage Rounds
November’s investments were mostly in later-stage fundraising. Notable were Cipher’s $13.3 million pre-IPO funding, Lean Technologies’ Series B, and Eyewa’s Series C round. While pre-seed startups dominated in deal count, obtaining $5 million over 16 transactions, Series A startups raised $23 million through two agreements.
Funding Is Dominated by B2B Models
48% of the total investment went to business-to-business (B2B) firms, confirming their increasing popularity. A total of $11.5 million was obtained by business-to-consumer (B2C) entrepreneurs, while the remaining monies were allocated to hybrid business models that functioned in both sectors.
Funding Inequalities by Gender
There was still a noticeable gender disparity in startup funding. 90% of the capital was obtained by male-led firms, whereas just $583,000 was obtained by female-led startups. With $22.5 million raised, startups co-founded by male and female entrepreneurs did better.
A Changing Ecosystem
The MENA region’s startup ecosystem is still vibrant and changing quickly as 2024 draws to a close. In terms of investment and deal volume, the UAE, Saudi Arabia, and Egypt remain at the top, paving the way for a bright future for the entrepreneurial scene in the region.
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