Middle East and North Africa (MENA) venture capital investments are on the rise. The following data collected from 2015 to 2018 illustrates this recent growth.
- The volume of MENA investment money has increased by over 300%. These investments are primarily made by MENA investors to impact the MENA region.
- The number of MENA institutions making investments has increased by more than 30%.
- Over this time period, 14 new Corporate Venture Capital (CVC) funds entered the MENA market.
- An estimated 30% of deals in MENA are unannounced, suggesting that investment volumes are higher than reported. But the proportion of unannounced deals is shrinking, indicating a more mature investment landscape.
- This data excludes investments in Careem and Souq, which were acquired by Uber and Amazon respectively. Careem and Souq raised over $1 Billion in funding.
This increase in both investor breadth and depth has drawn attention from firms all over the world who are seeking capital or MENA expansion. Based on J&A's experience, investments from the region are made in the forms of direct equity positions, joint ventures, and M&A financing.
Over the coming months, J&A will detail the MENA investment landscape including: industries that receive the most investment dollars, steps to create a successfully closed deal, and lessons learned. This information will be a resource to firms seeking expansion to the region in tandem with capital placement.