Start-ups in the Middle East and North Africa (MENA) region raised $277M in the first three months of 2020, a two per cent increase on last year, according to Magnitt’s Q1 2020 MENA Venture Investment report.
The start-up data platform revealed this was down to a strong start to the year – pre-coronavirus – with several start-ups raising large funding rounds in January and February, including Kitopi ($60M), Vezeeta ($40M), and SellAnyCar ($35M).
However, it added that investment deals for Q1 were down 22 per cent compared to the same period last year and, with the onset of the Covid-19 pandemic, that figure tumbled further in March, with a drop of 67 per cent recorded.
“Historical data highlights that investment rounds across MENA tend to take, on average, six months to come to fruition,” said Philip Bahoshy, Magnitt’s Founder & CEO.
“We will most likely not see the full impact of Covid-19 on the venture funding space yet for a few months. However, early indications have already shown a slowdown in funding announcements, as start-ups and investors re-evaluate their positions in this new environment.”
