MENA Startup Investments Slow Down in June 2024
In June 2024, investments in MENA region startups slowed down. 38 tech startups raised $116 million, bringing the total for the first six months of the year to $882 million. The amount raised decreased by 59% compared to May, but increased by 182% compared to June last year. This is according to a study by Wamda.
United Arab Emirates Takes the Lead
The United Arab Emirates (UAE) raised the most funds in June, with $82.5 million spread across 15 deals. Egypt raised $15 million with four startups, and Saudi Arabia raised $13.5 million with seven startups. In Iraq, six startups raised around $1.2 million, but this figure could be higher as some companies did not disclose their exact amounts.
What About Tunisia?
In June, only two Tunisian startups made a splash, managing to raise a total of $207,000. Tunisian startups continue to make their mark on the international scene, ranking 6th after Egypt in terms of funding received.
Most Financed Sectors
The fintech sector raised $38 million with 10 deals, becoming the most financed sector once again. The construction technology (contech) sector also performed well, thanks to Tenderd's deal. Three proptech startups raised $19.6 million in June, reversing the trend from May.
Startup Stages
Startups at the pre-Series A stage received $45 million. Seed-stage startups raised $27.3 million. Early-stage startups also attracted funds: eight pre-seed startups raised $3 million, and eight others received $140,000 in grants.
Business Model?
B2B startups raised $66.4 million with 18 deals, representing 74% of investments. B2C startups raised $49.5 million with 20 deals.
Gender Gap
Startups founded by men received $103.4 million, or 89% of investments. Only two startups led by women raised $200,000.
In Summary
MENA region startups showed some stability despite monthly variations. The UAE remains the leader. Fintech and contech are the most financed sectors. However, there is still an imbalance in funding between men and women. The rest of 2024 will be interesting to observe to see if these trends continue.
