Investments in MENA Start-Ups Falls Sharply

Startups in the Middle East and North Africa (Mena) managed to raise $105m in July 2022 through 44 deals, according to venture capital firm Wamda.

In July, there was a significant slowdown in investment attraction: by 84 per cent compared to last year and by 68 per cent compared to the previous month. In terms of deals, they fell by almost a third compared to June and by half compared to July 2021.

UAE fintech company Yap was able to attract the largest volumes of investments. It received $41 million, half the amount raised in the UAE alone. Saudi Arabia also saw a drop. In July, investment volumes were down 55 per cent compared to June 2022. The only country where investment rose was Egypt. There was a 72 per cent increase, thanks to Cartona's $12 million Series A round.

Male-founded start-ups received the bulk of the investment – $95 million, just under 91 per cent. Meanwhile, female-founded start-ups raised just 0.1 per cent of the $105 million. Startups with male and female co-founders attracted $9.6 million, or 9 per cent of the total.

CB Insights reports that investment in start-ups globally declined 23 percent in the second quarter due to growing economic uncertainty and falling tech stocks.