Following the mission to foster tech innovation in MENA, MAGNiTT, the largest venture data platform tracking startup investments, releases a series of reports that provide a holistic overview of the region’s venture capital ecosystem. The 2021 MENA Venture Investment Report is the first in the series, a comprehensive deep dive into venture investments across the MENA region. This annual report includes a 5-year trend analysis of venture evolution including a comparison of investments in technology startups headquartered in MENA. We also benchmark the performance of the top-5 countries in the region by the number of registered deals in 2020: the UAE, Saudi Arabia, Egypt, Jordan and Oman. What’s Inside: This 65+ page report supports governments, investors, entrepreneurs, and ecosystem stakeholders with the data and insight necessary to drive informed decisions. It is useful for stakeholders looking to track the changes in investor sentiment across MENA and to benchmark the performance of technology innovation hubs across the region. We identify trends in capital allocation across various industries, startup maturity stages, business types, and acceleration programs. This report also deep dives into the top investment rounds across these countries, and provides an overview of all startup acquisitions that happened in 2020.

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Table of Contents
| 2021 MENA Venture Investment Report
Foreword 3
MENA Exits and Historical Comparison 59
MENA VC Ecosystem - 2020 in Review 4
MENA Top 5 Countries - 2020 Comparative Performance 31
MENA Top 5 Deals Concentration Across Top 5 Countries 51
67Methodology
MENA VC Ecosystem - 5 Year Key Success Factors Comparison 12
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MENA VC Ecosystem: Foreword
Following the mission to foster tech innovation in MENA, MAGNiTT, the largest venture data platform tracking startup
investments, releases a series of reports that provide a holistic overview of the region’s Venture Capital ecosystem.
The 2021 MENA Venture Investment Report report, the first in the series, a comprehensive deep dive into the
venture investments across the MENA region. This includes a 5 year trend analysis of venture evolution including a
comparison of investments in technology startups headquartered in MENA. We benchmark the performance of the Top
5 countries in the region by the number of registered deals in 2020: the UAE, Saudi Arabia, Egypt, Jordan and Oman.
The 2021 MENA Venture Investment Report report aims to inform governments, investors, entrepreneurs, and
ecosystem stakeholders on the pulse of the region’s startup scene. It is useful for stakeholders willing to track the
changes in investor sentiment across MENA, identify investment opportunities in particular countries and benchmark
the performance of technology innovation hubs across the region.
This 65+ page report aims to identify the Key Success Factors of the regions most active technology hubs in MENA,
highlighting trends in capital allocation across various industries, startup maturity stages, business types and
acceleration programs. This report also deep dives into the top investment rounds across these countries, and
provides an overview of all startup acquisitions that happened in 2020.
The report will be followed by the 2021 Startup Industry Venture Report and the 2021 MENA Venture Investor
Ranking Report, with the former benchmarking the performance of technology industries across MENA, and the latter
providing an overview of the investors activity in each specific industry sector.
| 2021 MENA Venture Investment Report
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H1 2020 was a record 6 month of investment for the MENA region. Funding was X% higher when compared to H1 2019
▪ Even without the EMPG's mega deal, total funding in H1 2020 increased by X%, compared to H1 2019
▪ H2 2020 saw the impact of COVID 19. When compared to H2 2019, total VC investment was down X% and deal number was down X%
▪ When compared to H1 2020 VC investment in H2 2020 was down X% and number of deals was down X%
*Please refer to the appendix for an explanation regarding calculations on undisclosed funding| 2021 MENA Venture Investment Report
Undisclosed proxy ($M)
Disclosed funding ($M)
MEGA (+$100M) funding amount
Deals (#)
Half-year MENA funding comparison by $M and # deals
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5. MENA VC Ecosystem
5 Year Key Indicator Comparison
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5 YR MENA funding share ($M) evolution by ticket size
The maturity of MENA startup ecosystem was also translated in a more even allocation of invested capital across all stages
▪ Although Early Stage garnered X% of deals, they amassed less than X% of funding amount in 2020
▪ Venture Capital ($XXK - $XXM) displayed gradual growth since 2016 (X%), up to X% of all funding in 2020
▪ Growth and Venture Capital funding combined grew by X% over in 2020 as we see more investment at later stage
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Early Stage Venture Capital Growth
$0K - $100K $100K - $500K $500K - $3M $3M - $10M $10M - $100M $100M+ Total by $ Funding
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5YR evolution of accelerated deals vs. non accelerator deals by number
COVID 19 has deeply impacted the accelerator model with many programs being cancelled and only few moving virtual
▪ Accelerator deals are a key source of investment pipeline for the region with many leading entities creating MENA specific programs
▪ Prior to 2020, we saw a continued growth in the proportion of all venture deals coming from accelerators in both X% and absolute numbers
▪ 2020, however, saw a sharp decline with a X% drop in absolute numbers and a X% drop in the proportion
| 2021 MENA Venture Investment Report
Accelerated Deals
Non-Accelerated Deals
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5YR evolution of average & median ticket size
Both average and median ticket sizes across all deals were up in 2020 driven by larger deals at all stages
▪ Average ticket size grew X% and median ticket sizes increased by X% in 2020
▪ COVID 19 has shown a drop in early stage investments, specifically accelerator deals, which commonly have ticket size of up to $XXk
▪ This impact has seen 1) a reduction in the tail of the distribution on the lower end and 2) also seen larger rounds at later stages
Average & median ticket size evolution, 2016 - 2020, $M
Average, $M
Median, $M
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5YR evolution of regional investors vs. international investors
The number of active investors gradually grew with the CAGR of X% since 2016
▪ While the absolute number of investors grew, the split between international vs. regional firms remained relatively stable
▪ Despite the concerns of COVID19 deterring investors, we continued to see new institutions making investments in 2020
▪ Due to an increase in international investors’ appetite for the MENA region, their number went up from X to X since 2016
| 2021 MENA Venture Investment Report
MENA-based Investors
International Investors
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10. 5YR MENA funding share ($M) evolution by industry
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2020 saw the top 10 industries account for X% of all funding with a relatively even distribution for the first time in 5 years
▪ Sectors which saw increased demand because of the COVID-19 pandemic saw increased funding including E-commerce & FinTech
▪ Since the acquisitions of Souq & Careem, E-Commerce dropped from X% to X%, while Transport fell from X% to X% compared to 2016
▪ FinTech went up during the same period from X% to X%, Healthcare from X% to X%, Food & Beverage from X% to X% since 2016
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| 2021 MENA Venture Investment Report
E-Commerce FinTech Healthcare Food & Beverage Delivery & Logistics IT SolutionsOther
Education Transport Network & CommunityConsumer Services Total by $ Funding
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5YR MENA deal share (#) evolution by business type
Year to year variances in the breakdown of company investments, with on average X% going towards B2B & B2C transactions
▪ In 2020 saw the emergence of B2G, C2C as well as B2B2C to cater to more complex needs in digital transformation
▪ B2B startup investments have tended to garner the most transactions in any year followed by B2C startups
B2C B2B2CB2B Platform Other*
*Includes B2G, C2G, and other business types| 2021 MENA Venture Investment Report
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12. MENA Top 5 Countries
2020 Comparative Performance
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MENA Countries deal share (#) ranking for 2020
From a total of X deals registered in 2020 in MENA, X out of ten transactions (X%) happened in the Top 5 innovation hubs: the UAE,
Egypt, Saudi Arabia, Oman and Jordan:
▪ UAE remained the country which startups received the most number of investments in 2020, retaining the top spot from 2019
▪ Due to COVID-19, we have seen a larger proportion of investment go towards the top 5 MENA hubs, last year they only accounted for X%
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MENA Top 5 Countries: Absolute funding amount ($M) '19 vs '20
Investment in startups in the top 3 most active hubs saw increased levels of funding year over year in the UAE, Egypt & KSA
▪ This increased level of funding was driven in part by later stage investment deals, largely attributed in H1 2020
▪ KSA saw the increase driven not only by larger deals, but a X% increase in transactions as it strengthens its ecosystem
▪ Despite Lebanon not being featured in the top 5 most active countries by transactions, it did rank X in total funding ($M)
| 2021 MENA Venture Investment Report
United Arab Emirates (UAE) Egypt Saudi Arabia (KSA) Kuwait Lebanon
⬈+x%
⬈+x%
⬈+x%
⬊-x% ⬊-x%
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MENA Top 5 Countries, number of deals (#) per ticket size comparison
While more Growth Stage deals were registered in developed hubs, the majority of the transactions in developing clusters were Early
Stage
▪ Deals were equally distributed across all stages in the UAE, KSA, and Egypt
▪ Deals less than $500K represented X% and X% of all registered transactions in Oman and Jordan, respectively
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| 2021 MENA Venture Investment Report
Early Stage Venture Capital Growth
$0K - $100K $100K - $500K $500K - $3M $3M - $10M $10M - $100M $100M+ Total by # of Deals
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MENA Top 5 Countries, amount of funding ($M) comparison by industry
Capital allocation across industries revealed diverse investors’ focus, based on specific technology needs of each nation:
▪ In the UAE X% of funding went to F&B, while x out of 10 of capital in Egypt was allocated to Healthcare; X% of KSA funding went to
E-Commerce
▪ FinTech received X% of total funding in Jordan, while X% of funding in Oman went to IT Solutions
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XX
| 2021 MENA Venture Investment Report
E-Commerce FinTech Healthcare Food & Beverage Delivery & Logistics IT SolutionsOther
Education Transport Network & CommunityConsumer Services Total by $ Funding
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17. MENA 2020 Top 5 Deals
Concentration Across Top 5 Countries
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1. UAE - Top 5 disclosed deals
| 2021 MENA Venture Investment Report
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19. MENA 2020 Exits and
Historical Comparison
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Saudi Arabia accounts for the largest number of exits in 2020 with X deals
▪ The Advertising & Marketing and E-commerce industry were the most attractive deals with X exits in each industry
▪ The pandemic had a negative impact on the rate of exits in the region, with deals dropping by X% in 2020 compared to 2019 in UAE itself
MENA 2020: successful exits per country
| 2021 MENA Venture Investment Report
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MENA 2020: all successful exits
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22. Methodology & Definitions
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23. Our proprietary database and software provides access to data from multiple sources: user-submitted data verified by MAGNiTT, aggregated public
information, data engineered by MAGNiTT. All non-engineered data is verified & curated with an extensive manual process for inclusion in this report.
Proprietary
Startups and institutions list their proprietary information on funding amount, stage, date, and investors directly onto the MAGNiTT platform. All funding
data is validated through a strict process. To ensure comprehensiveness in the data, on a quarterly basis a follow-up with all registered and verified
funding institutions on MAGNiTT occurs, requesting details on all their investments, including stage, amount, date, and other co-investors. These include
VCs, angel groups, accelerators, university funds and family offices for MAGNiTT’s focus geographies.
Public
We undertake daily gathering of public announcements and press releases on the venture funding landscape across MAGNiTT’s focus geographies.
Engineered Data
Proprietary algorithms that tap into MAGNiTT’s databases are used to create estimates for undisclosed data with factors including but not limited to year
of funding, location of startup, stage of investment and the company’s industry. This helps portray a more accurate representation of the full picture.
Below is an outline of the approach and criteria used in MAGNiTT’s research analysis
What is included:
Equity financing into private companies. Funding rounds included must be to VC-backed companies. VC-backed companies are defined as companies
that have received funding at any point from: venture capital firms, corporate venture arms, or Angel investors. Where disclosed Angel investments are
made at early stage these deals are included once verified.
Excludes:
It excludes debt or other non-equity funding, lending capital, grants and ICOs.
Exits:
Buyouts, M&A, secondary rounds, and IPOs are treated as exits: excluded from funding data, but included in exit data.
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MAGNiTT’s Methodology
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MAGNiTT encourages you to review the methodology and definitions employed to better understand the numbers presented in this report. If
you have any questions about the definitions or methodological principles used, reach out to MAGNiTT directly.
Data lags:
The data contained in this report comes directly from MAGNiTT, reported as of end of Dec 2020. Data lags are most pronounced at the earliest stages of
venture activity. The data aggregated for these rounds during the latest quarter, specifically at SEED, increases significantly after the end of that quarter.
Verified Rounds:
To ensure accuracy and confidence in our data, MAGNiTT undertakes a verification process for each funding round based on the following process:
- Direct confirmation with firm or investor
- Validated if there is a 3rd party source for the investment round from credible media sources or press releases.
- Various regulatory filings where applicable
- A round is not verified if added by a startup and has no 3rd party reference
Country HQ:
In each of our Venture Reports, the location by which the data is analysed is based on the startup’s HQ as chosen and verified by them and reflected on
the MAGNiTT platform. When analysing a particular geography, our research does not include Investments in startups from diaspora founders Funding for
startups who have their main HQ outside of our coverage with only a subsidiary or branch in that country.
Historical changes:
We continue to improve historical data as we further verify our data sets and expand by geography while reaching out to new funding Institutions.
Continued improvements in our technology and data operations will leads to more accurate and comprehensive data sets on the platform for our research
● All underlying data from the report is available online via magnitt.com/funding-rounds. For more info please visit magnitt.com or contact
support@magnitt.com.
● If you feel your firm has been underrepresented, please send an email to support@magnitt.com and we can work together to ensure your firm’s
investment data up-to-date.
Estimation of Undisclosed Deal Amounts
| 2021 MENA Venture Investment Report
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25. https://magnitt.com info@magnitt.com
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