Hossam Shafick

📊 A month of revitalization in MENA MENA startups raised $282M across 63 deals in September — 234% increase from August and a 607% surge compared to September 2023. Venture capitalists continue to favor early-stage investments, with Seed-stage startups securing $102M across 32 deals. Debt financing accounted for only 12% of the total volume. The largest deal was closed by Saudi Arabian startup SHIFT, raising $82.8M to expand its car-sharing platform. In second place was Syarah, an online marketplace for buying and selling cars, which raised $60M in a Series C round (including $20M in debt financing). The top three countries remained unchanged: 🇸🇦 Saudi Arabia: 23 startups raised $170.8M.  🇦🇪 UAE: 12 startups raised $73.8M.  🇪🇬 Egypt: 13 startups raised $25M. Despite geopolitical challenges, the MENA ecosystem continues to grow. In Q3 2024, startups raised $727M, a 192% increase year-over-year. The outlook for Q4 remains positive.

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The MENA Investment Boom Is this the next Silicon Valley? The MENA region is bridging tradition and innovation, becoming a global leader in redefining investment models. As an investment researcher, here’s what stands out: 1. Family Offices Fueling Startups: Private capital from family offices is driving growth, with Saudi Arabia and the UAE contributing 79% of non-MEGA deal funding in H1 2024. 2. Unicorn Boom: MENA startups raised $768M in H1 2024, with sectors like fintech, AI, and e-commerce leading. Fintech, in particular, is thriving in underbanked markets. 3. Government Support: Initiatives like Saudi Vision 2030 and UAE’s NextGenFDI are creating a fertile environment for startups to scale and attract global investors. 4. Global Attention: Investor participation grew 30% YoY in 2024, with international VCs eyeing the region for its competitive valuations and untapped opportunities. MENA is rewriting investment success stories, are you ready to be part of this transformation? #MENAInvestment #VentureCapital #Unicorns #MiddleEastTech

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Why are single family offices established? Here is an overview of the main factors in establishing a SFO in the MENA region. The main reason is, without much surprise, the institutionalisation and professionalisation of investments and assets management. Family oriented issues, such as succession and legacy are also significant reasons to create an SFO. Are you surprised by the difference reasons and their relative importance? Does that contradict your family office experience? Fell free to comment below. Thank you for reading. The chart is from "The Rise of Single Family Offices in the MENA" report published by LGT Private Banking & Tharawat Family Business Forum. Thank you Hugo King-Oakley for sharing. Did you appreciate this post? Would you like to see more? Like this post Follow Hugues Hallot 🔔 Ring it on my Profile 🔝 Connect with me #FamilyOffice #Investment

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The sixth episode of Rally Cap VC's podcast is out 🗣️🎙️🔊 Amir Farha is a prominent figure in MENA VC, managing the largest solo-GP fund in the region [$54m]. He previously co-founded the first and largest early-stage VC firm in the Middle East [BECO Capital, $500m AUM]. Timestamps: (1:49) Building a second VC firm (3:02) What does 'strong founder' even mean? (4:29) Investing in underdogs (6:15) Aren't we all improvising? (7:05) The evolution of Amir 1.0, Amir 2.0, Amir 3.0 (11:18) Aren't VCs just monetizing access? (13:26) Raising $50m as a solo-GP (15:16) KSA/UAE/Egypt, too many startups, beyond the VC model (17:57) Unconventional founder moves in nascent markets (20:34) Unhealthy obsession: psychological cost of succeeding in VC?

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talabat the leading on-demand delivery platform in the Middle East and North Africa, has priced its initial public offering (IPO) at the top of its price range, raising $2.04 billion. The company increased its offering size from 15% to 20% of its total share capital to accommodate substantial investor demand, it announced last week. This marks the largest global technology IPO in 2024 and the largest IPO in the Middle East & North Africa this year. It is also among the top ten global IPOs this year. The final offer price was set at AED 1.60 per share, implying a market cap of $10.16 billion at listing. Read more: https://lnkd.in/dGK-HysZ Source MENAbytes

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Cash is king! How can Corporates leverage their financial firepower during a VC funding downturn? During times of limited liquidity, corporations wield significant power to bolster startups through financial investments and strategic acquisitions. Healthy Corporate participation is a sign of a maturing and developing startup ecosystem. Many Corporates in the MENA region are beginning to either 1) Invest off balance sheet 2) Set up Corporate Venture Funds 3) Build out incubators and accelerators specialized in their domain Not only that they can be a hotbed of education and learning to inspire future founders who look to disrupt their industries. In the #UAE and #SaudiArabia in particular, we’ve seen a rise in the participation of CVCs. In fact, a recent report by PwC Middle East used data sourced from MAGNiTT to explore the increasingly vital role of CVCs in #GCC markets. I recommend giving it a read: https://lnkd.in/dv4uZeXr Interested to learn more? I had a great chat with Sharif El-Badawi, CEO of Dubai Future District Fund on this and much more in our monthly webinar series where we discussed the #Q1 downturn and the road ahead for #MENA: https://lnkd.in/dxbP9_h7 Are you going to the DIFC #DIFCFinTech summit today? I will be, come say hi or DM me, love to grab a coffee #webinar #Q1data #CVC #venturecapital

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Summary: Despite Saudi Arabia's history of human rights abuses, there is a growing interest from U.S.-based investors to invest in startups in the Middle Eastern nation. General Catalyst is planning to invest in a fintech startup, Lean Technology, and other firms such as Coatue Management and Andreessen Horowitz have recently backed Saudi Arabian startups. Key takeaways: Despite concerns about the country's human rights record, some U.S. investors are showing a willingness to invest in Saudi Arabian startups, potentially driven by the country's large and growing market. General Catalyst investment in Lean Technology is a significant step in this trend, as it is the firm's first investment in a Middle Eastern nation. Other U.S. firms, such as Coatue Management and a16z, have also recently backed Saudi Arabian startups or expanded their presence in the country through investments in related industries (such as co-living). Counter arguments: There may be ethical concerns about investing in a country with a record of human rights abuses and suppressing dissent. The motivations behind these investments may also be driven by the goal of gaining access to the huge Saudi Arabian market, rather than solely supporting the growth of the country's startups. #venturecapital #vc #venture #startups

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🌟 The Story Behind the Venture Capital & Private Equity Analysts (MENA) Community A few months ago, I found myself reflecting on how challenging it can be to navigate the VC & PE landscape alone—especially in a region as dynamic and fast-evolving as MENA. As analysts, we spend hours crunching data, evaluating opportunities, and building models, often without a support system to exchange ideas or get real-time feedback from those who truly understand the intricacies of our work. That got me thinking: What if we had a community where VC & PE analysts from across the region could connect socially, share knowledge, and uplift one another? A space where insights flow freely, where seasoned professionals mentor those just starting out, and where every interaction strengthens the MENA ecosystem. This is how the Venture Capital & Private Equity Analysts (MENA) Community was born. At its core, this isn’t just another professional network—it’s a social community built on the belief that: 🤝 Collaboration fuels growth. Strong networks create stronger ecosystems. 💡 Shared knowledge unlocks new opportunities. When we share insights, we all move forward. 🚀 Support matters. Whether it’s tackling a challenging project or navigating career milestones, we’re here to help each other thrive. 🌍 Together, we shape the future. We can push MENA’s investment landscape to global heights by working together. If you’re an analyst in venture capital or private equity in the MENA region, this space is for you. I invite you to join us, contribute, and benefit from a growing community that’s driven by learning, connecting, and building lasting relationships. Let’s create a community we can all be proud of! Welcome aboard, and I look forward to seeing you inside. 🚀 👉 Join our WhatsApp group here: https://lnkd.in/dctvh7f8 👉 Or connect with us on LinkedIn: https://lnkd.in/dJMWHDXB #MENA #VC #PrivateEquity #AnalystsCommunity #Networking #Growth #Ecosystem

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MENA Q1 2024 Startup Funding Overview Startups in the MENA secured a total of $429 million in funding across 129 deals. SaaS, fintech, and e-commerce continue to lead the way in terms of sectors attracting investment. The top 3 countries by funding volume: Saudi Arabia: Following LEAP 24, Saudi startups raised $198 million across 25 deals. This highlights the importance of attending conferences, speaking at events, and building your network. UAE: 12 startups raised $39 million. Egypt: 8 startups raised around $7 million. The largest funding round was a $35 million pre-seed round for Tumodo, a Dubai-based business travel platform.

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"For Mubadala’s next act, Ajami is seeking to milk his tech connections to put more money directly into startups. At the same time, Mubadala is increasingly using its clout to encourage Western companies and investors to deepen their ties to the UAE’s tech ecosystem, part of the country’s broader push to diversify its economy away from oil. For Ajami, 49, the goal is for Mubadala—a term that means “exchange” in Arabic—to one day be mentioned in the same breath as Sand Hill Road’s most vaunted investment firms. “The way founders speak about Sequoia—why not, 20 years from now, won’t they speak that way about Mubadala?” asked Ajami. Ajami has a ways to go before he gets Mubadala there. Mubadala has stumbled badly in Europe as it has tried to employ a strategy similar to the one it used to break into the U.S. The companies it has backed in Europe have performed so poorly that Mubadala has put Jonno Elliott—who joined the firm in 2022 after leading VC investments at Virgin Management Ltd.—in charge of salvaging its portfolio of companies from the region, according to a person who spoke to Elliott. Among some European investors and founders, it has developed a reputation for aggressive tactics that could impact its ability to invest in top European companies in the future. And while plenty of tech investors speak highly of Mubadala, many of them are eager to curry favor with the deep-pocketed firm so it continues to invest in their funds, especially in the current dismal fundraising environment for VC firms. Privately, after singing the praises of Mubadala as a limited partner, many venture capitalists have also said its direct investments in startups don’t carry the weight of other investors’ bets. Sovereign wealth funds just don’t have the track record of picking winners that VC firms do, those critics say. Still, Mubadala has had some notable successes. Ajami and his lieutenants have helped it buy shares in buzzy companies like SpaceX, Waymo, Klarna, Brex, Chime, pharmaceuticals company Recursion and AI infrastructure company Crusoe Energy Systems, among others. Mubadala Capital, the VC and private equity arm of the sovereign wealth fund, oversees a $24 billion pool of capital with 180 employees spread across several offices, including in London, New York and San Francisco, which hosts a tech team they first established in 2017. Mubadala is also continuing to plow money into other VC funds. Its portfolio includes Altimeter Capital Management, Greenoaks Capital, Iconiq Capital, Dragoneer Investment Group, 8VC, Marcelo Claure’s Bicycle Capital, DCVC, Haun Ventures, Arch Venture Partners, Clocktower Group, Radical Ventures and a handful of emerging managers, like a new $30 million seed fund called Nebular, according to several people familiar with these funds." https://lnkd.in/gnyGdbg3

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PitchBook's H1 2024 MENA Private Capital Breakdown is here! Key Takeaways: * Tough market dynamics have tempered Middle East & North Africa (MENA) PE dealmaking * As was the case globally, the MENA VC ecosystem displayed weaker capital deployment levels in H1 2024 * PE- and VC-backed exit activity plunged in H1 2024 * After a record high in fundraising in 2023, capital raised slowed in 2024 YTD https://lnkd.in/d5TEiYT6

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The stats reveal a transformative shift in the MENA region's venture capital landscape, where corporate ventures and VCs are increasingly recognized as a distinct asset class. Despite a year-on-year decline in deal flows, there is a notable emphasis on grassroots-level investments by family offices and larger investment houses. This strategic shift towards early-stage and local startups underscores an increasing confidence in the potential of regional ventures. However, the recent decline in the number of exits can be attributed to a combination of fewer available opportunities and the overall maturity of the market, which suggests that investors are focusing on nurturing existing businesses rather than pursuing quick exits. This maturation of the ecosystem emphasizes the importance of supporting emerging companies that address local needs..

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𝗨𝗯𝗲𝗿: 𝗔 𝗣𝗼𝘄𝗲𝗿𝗵𝗼𝘂𝘀𝗲 𝗙𝗼𝗿 𝗕𝗶𝗿𝘁𝗵𝗶𝗻𝗴 𝗡𝗲𝘄 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 🥇 At Uber, the concentration of talent was unparalleled. Under Travis Kalanick's leadership, Uber didn’t just expand—it became an incubator for the next generation of startup founders. 💡 175+ startups launched 💰 $10B+ in funding raised by former Uber employees Karman Ventures, led by Amr Al-Shihabi and William Barnes, is flourishing by supporting former Uber founders. But what makes these ex-Uberites so successful in the startup world? Here’s why: • 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝗳𝘂𝗹: They excel at maximizing limited resources • 𝗜𝗻𝗱𝗲𝗳𝗮𝘁𝗶𝗴𝗮𝗯𝗹𝗲 𝗲𝘁𝗵𝗶𝗰: Their drive is relentless • 𝗥𝗲𝘀𝘂𝗹𝘁𝘀-𝗼𝗿𝗶𝗲𝗻𝘁𝗲𝗱: They deliver results, no excuses • 𝗠𝗲𝗿𝗶𝘁𝗯𝗮𝘀𝗲𝗱: The best ideas triumph, regardless of hierarchy • 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 & 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘀𝘂𝗽𝗲𝗿𝗶𝗼𝗿𝗶𝘁𝘆: A unique blend that distinguishes them • 𝗚𝗿𝗶𝘁: They've endured the grind and emerged resilient Uber attracted elite talent from institutions like Harvard, Meta, Google, Amazon, and Stanford. The outcome? Over 250 companies established by alumni, including Aurora, Bird, Chronosphere, AtoB, and Forward. These exceptional founders—such as Drew Bagnell, Travis VanderZanden, Martin Mao, and many others—are shaping the future of tech giants. Source: Palle Broe,Ruben D Follow JayaSankar Subburaj for daily insights on Startups and Venture Capital. #VentureCapital #Startups #Funding #Investment #AngelInvestor #founders #acquisitions #m&a #ProductMarketFit

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I also think deal volume will uptick in the second half of 2025. Data also tells us that: 📊 LPs and investors are investing early stage because they’re looking for a real alpha. Obviously, returns 💵 📊 Large fund sizes are nascent in the region which will leave room for venture debt to grow 📈 📊 IPOs and M&A transactions will trigger more cash to flow back into ventures with higher confidence from winning investors to write even more and bigger checks 💰 Thanks, Nuwa Capital and Khaled Talhouni for insights.

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