MENA start-ups attract $1 billion during 2020, despite coronavirus

MENA start-ups attract $1 billion during 2020, despite coronavirus

Venture capitalists poured $1 billion into regional start-ups last year, signaling high investor confidence, despite the global coronavirus pandemic, a report published by Magnitt said.

The coronavirus pandemic has wreaked havoc on international markets, leaving start-up markets in some regions hard hit.

However, the start-up scene in the Middle East, while not left untouched by the pandemic, has weathered the storm relatively well.

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In the Middle East and North Africa, 256 investors, including international venture capitalists, put money in regional start-ups, according to Magnitt, the start-up data platform for emerging venture markets. A quarter of investors were based outside the region, with 11 percent headquartered in the US.

“Despite Covid-19, we saw continued interest from international investors and new funds investing in MENA based start-ups. As the ecosystem continues to mature, and as Magnitt further expands into Emerging Venture Markets, we expect to see increased cross pollination across markets like Turkey and Pakistan, as well as increased international interest in the MENA region,” Philip Bahoshy, Magnitt, founder and CEO, was quoted as saying in a press release.

Philip Bahoshy, MAGNiTT, founder and CEO

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