Startup funding in Saudi rises 9% in H1

Startup funding in Saudi Arabia increased by nine percent in the first half of 2018, investment data platform MAGNiTT said in a statement.

The UAE continued to account for the lion’s share of startup investment (59 percent) while Egypt saw an increase of 12 percent, it added.

A total of 141 investments were made in H1, a 12 percent increase year-on-year. However, total disclosed funding declined 43 percent to $112 million from the previous year.

According to MAGNiTT, total funding, including undisclosed deals, amounted to $203 million in H1 2018, maintaining similar levels to H1 2017’s estimate of $206 million.

Among the notable undisclosed deals this year include Mumzworld (Series B), Fadel Partners (Series B) and Armada (Series A).

E-commerce remained the most active industry with regards to investment in the first six months of 2018, accounting for 12 percent of all transactions and 16 percent of disclosed funding.

"When looking at the geography and industries of startup investment, however, new trends are beginning to emerge. The UAE still maintains its dominance as the most active and largest recipient of startup funding, with other countries beginning to emerge," said Philip Bahoshy, founder, MAGNiTT.

“Governments across the region continue to focus on startup innovation. We have seen regional initiatives like visa regulation changes in the UAE, launch of the new 'Fund of Funds' in Bahrain and changes to foreign ownership structures in Saudi Arabia as examples to further support entrepreneurs in the region.

"While challenges exist, similar to all emerging ecosystems, the public and private sector are working closely together to help solve for many founders pain points,” he added.

Separately, H1 continued to see new market entrants as well as deployment from many of the same protagonists with 500 Startups remaining the most active venture capital investor, especially at the Seed and Pre-Seed stage.