Top 10 MENA VCs and their Requirements

Lately, the Middle East and North Africa (MENA) region has seen a significant surge in Venture Capital (VC) investment due to various factors. This may include the youthful population, an increase in education and entrepreneurship, and a rapidly growing economy. A report by the World Bank shows that MENA is home to six out of 10 of the world’s fastest-growing economies.

The rise in entrepreneurship has attracted the attention of venture capitalists. Venture Capitalists refer to individuals or groups that invest in early-stage startups with high growth potential in exchange for equity in the company.

What is the history of MENA VCs?

MENA’s introduction to venture capitalists is long and diverse given the number of countries in the region but some key advancements shaped the development of MENA VCs.

In the 1950s, a group of Egyptian businessmen launched the Arab Fund for Economic and Social Development, providing small business loans and equity financing. This served as the foundation of MENA VCs funding as it showed demand for this type of investment.

In the 1970s, the oil crisis hit the region hard, and many countries were forced to diversify their economies via entrepreneurship. As a result, venture capital began to take off in countries like Kuwait, Qatar, and Saudi Arabia.

The 1980s were plagued by economic instability due to wars but this did not stop the growth of MENA VCs. One of the most notable deals was the $50 million investment made by the Kuwaiti firm Kuwait Investment Office in Citigroup in 1984.

Political and economic change occurred in the Middle East and Africa during the 1990s. One of the most notable deals of this period was the $200 million investment made by Saudi Arabian Prince Alwaleed bin Talal in Citigroup in 1991. This investment helped cement Saudi Arabia’s position as a major player in the venture capital industry.

The 21st century has seen several changes as the global financial crisis of 2008 led to a slowdown in deal-making, but this has since picked up again. In recent years, there has been an increase in the number of Islamic venture capital firms, as well as a growing interest from Chinese investors.

If you are a startup founder in your Pre-Seed or Seed stage seeking funding, then you should come closer. Let me show you 10 of the most prominent MENA VCs and all you need to know to get that needed fund. 

These are the top 10 MENA VCs in our opinion…

Wamda Capital: Wamda is a leading Dubai-based VC firm with a focus on early-stage technology startups across the MENA region. It runs two funds namely Wamda Capital – Fund I and Wamda Capital – Evergreen Fund. So far, Wamda has invested in more than 67 companies including Tabby, and Hala.

Investment Stage: Seed to Series A.

Requirements: Strong founding team, innovative business model, scalable potential.

MEVP (Middle East Venture Partners): MEVP is the pioneer and one of the most active MENA VCs that invests in technology-enabled and digital media companies at the early-stage and growth stage. It boasts over $300m in assets under management.

Investment Stage: Seed to Series B.

Requirements: Proven traction, experienced team, disruptive technology.

Shorooq Partners: Shorooq Partners is also based in Dubai and focused on early-stage technology companies in the MENA region. The goal of its founders was to unlock the potential of new ideas and businesses in the region. Some of the companies invested in so far include Tamara, Prypco, Roamless, etc.

Investment Stage: Seed to Series A.

Requirements: Strong team, scalable business model, disruptive technology.

RAED Ventures: RAED Ventures is based in Saudi Arabia unlike the above MENA VCs, but it also invests in companies across the region. They partner with founders by investing in their potential, helping them build connections, and giving access to new markets and RAEDPlus. RAED is open to investing in startups under edtech, e-commerce, logistics, digital health, AI/ML, retail tech, entertainment, and even enterprise solutions. Their portfolio includes Tabby and Swvl among others.

Investment Stage: Seed to Series A.

Requirements: Innovative idea, strong team, scalable business model.

Saudi Aramco Entrepreneurship Ventures (Wa’ed): Wa’ed is the venture capital arm of Saudi Aramco that invests in early-stage startups in Saudi Arabia and the MENA region. It is a $500 million venture capital fund to invest in tech-based startups pushing the boundaries of innovation worldwide. 

Investment Stage: Pre-Series to Series C.

Requirements: Strong team, disruptive technology, scalable business model.

BECO Capital: BECO Capital is one of the MENA VCs that has the longest track record in the Gulf with two unicorn exits and a portfolio of the region’s most iconic success stories. With $495M in AUM across four funds, BECO Capital is the largest non-government early-stage venture firm in the Gulf. It focuses on consumer internet and technology startups. Some companies that benefited from its Fund IV include Ejari, FlapKap, and MALA.

Investment Stage: Seed to Series A.

Requirements: Strong team, scalable business model, high-growth potential.

VentureSouq: VentureSouq (VSQ) is a GCC-based VC for global early-stage technology businesses. Currently, they are focused on fintech and climate tech startups in the MENA region. Its portfolio includes ABHI Finance, Aleph, Hakbar, Static, etc.

Investment Stage: Seed to Series A.

Requirements: Strong team, innovative idea, scalable business model.

Arzan Venture Capital: Arvan VC is a Kuwait-headquartered VC that focuses on technology startups in the UAE. So far, they have invested in 46 companies across 10 countries in the MENA region.

Investment Stage: Early stage.

Requirements: Strong team, innovative ideas, high-growth potential.

Flat6Labs: Flat6Labs is a regional startup accelerator program and early-stage venture capital firm that invests in technology startups in the MENA region. It is headquartered in Tunisia but has invested in companies based in other countries like Egypt, UAE, KSA, Jordan, Lebanon, and Bahrain.

Investment Stage: Idea stage to Series A.

Requirements: Strong team, innovative ideas, high-growth potential.

Mena Venture Investments: Mena Venture Investments (MVI) is an angel fund that invests in early-stage startups with strong growth potential MENA Region and beyond. The fund is primarily based out of Amman, Jordan. It has invested in 59 companies in the last 13 years with an average of 1 new investment every year in the last 10 years.

Investment Stage: Early stage of growth.

Requirements: Strong team, innovative idea, scalable business model.

These are not the only MENA VCs though, many others will be interested in investing in your startup if you meet their requirements. Some of these other MENA VCs include Morningstar Ventures, 500 Capital, Hala Ventures, Nama Ventures, Leap Ventures, Impact46, Woodstock Fund, etc.

To increase your chances of securing funding from MENA VCs, you must have a well-crafted business plan, a strong team, a solid understanding of your target market, and a clear value proposition. Additionally, networking with investors and industry experts can significantly improve your chances of securing funding.

We hope that the knowledge gained from this article has armed you with enough information on where to get funding for that innovative idea. Now go get it!