Startups from the Middle East and North Africa (MENA) region raised $116 million in June 2024, declining by 59% from the previous month [May 2024].
Four Egyptian startups raised $15 million, the 2nd highest total raised after the United Arab Emirates (UAE) whose startups led the region in funding, securing $82.5 million across 15 deals.
The fintech sector drew the most funding in June 2024, attracting $38 million across 10 deals, with con-tech (construction tech) trailing closely. Additionally, three prop-tech startups secured $19.6 million, falling behind their previous lead from May 2024.
Crypto Oasis Daily News#MENA startups raised $282 million in May 2024, with #UAE leading and #Web3 sector securing $1 million.
Learn more: https://t.co/BYVjZrF3vk
Source: BitcoinKE pic.twitter.com/ABuZLZlnqE
— Crypto Oasis (@CryptoOasisUAE) June 10, 2024
The Web3 sector drew $5.5 million, increasing more than 5 times from the $1 million raised in May 2024. Overall, in H1 2024, the Web3 sector has attracted $47.6 million.
Most of June 2024’s funding was directed towards the pre-Series A stage, with four startups receiving $45 million
This was followed by the Seed stage, where five startups raised $27.3 million
Despite this, early-stage startups continue to draw significant investor interest, as eight pre-seed startups secured $3 million, and
Another eight obtained $140,000 in grants
#Web3 startups in the Middle East and North African (MENA) region raised over $47 million in H1 2024. #MENA pic.twitter.com/Wh243rD4kb
— BitKE (@BitcoinKE) July 12, 2024
Business-to-business (B2B) startups dominated most of the funding in June, raising $66.4 million across 18 deals, accounting for 74% of the total investment, while 20 business-to-consumer (B2C) startups raised $49.5 million.
Since the beginning of 2024, startups in the region have raised a total of $882 million, a 46% decrease in the total funding in H1 2024, down from the $1.6 billion recorded in the same period in 2023. The war in Gaza has cast its shadow on the startup ecosystem, prompting regional and international venture capital firms (VC) to adopt a ‘wait-and-see’ stance.
The UAE maintained its position as the leading destination for startup investments with 91 UAE-based startups raising $455.5 million in H1 2024, a decrease from the $604 million secured in H1 2023
Saudi Arabia followed, attracting $300 million in total funding, down from $554 million the previous year [2023]
The Egyptian startup ecosystem saw just 33 startups raising $83 million, an 80% decline from the same period last year [2023]
On the other hand, the Moroccan ecosystem is gaining momentum with six of its startups receiving $12.5 million in H1 2024
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