Startup Lounge: More VC investors now interested in Africa, Middle East – Nihal El-Chami

Startup Lounge: More VC investors now interested in Africa, Middle East – Nihal El-Chami

With the growing number of startups across different sectors, especially financial technology (FinTech), the dynamics of the venture capital (VC) landscape in Egypt have been changing with local and international investors becoming more interested in putting their money into new innovative ideas and helping entrepreneurs to scale their businesses. VC has growing importance to the economy, by providing small and medium-sized companies with growth financing that might not be available through conventional bank loans. During the first half (H1) of 2021, VC investments in Egypt have increased by 29% year-on-year (YoY), representing 91% of total capital deployed in 2020, according to MAGNiTT's report. Data also showed that early-stage funding rounds, sized below $500,000, rose by 10% between 2020 and H1-21. Meanwhile, the number of active investors in Egyptian startups has more than doubled in three years to record 69 in 2020 from 31 in 2017, with international firms representing 32% of all investors last year. One of the top VC investors in Egyptian startups last year was Falak Startups, a business accelerator powered by Egypt’s Ministry of International Cooperation and its venture capital arm, Egypt Ventures. Falak aims to support startups’ growth through investment and mentorships, so we at Mubasher