MENA VC Funding Dips by Nearly Half to $882 Million in H1 2024
MENA startups witnessed a VC funding declined from $1.6 billion in H1 2023 to $882 million (-46%) in the first six months of 2024.
The first half of 2024 presented a complex and challenging environment for venture capital (VC) funding in the Middle East and North Africa (MENA) region. The total funding plummeted by 46% compared to the same period in 2023, from $1.6 billion to $882 million, according to the Wamda report. This substantial decline reflects a cautious stance among VCs, occasioned by geopolitical tension such as the ongoing war in Gaza and fears of potential military escalations in the region.
Despite the overall decline, Q2 2024 showed signs of a slight recovery. Funding in Q2 amounted to $453 million across 98 startups, a 5% increase from Q1's $429 million. However, this still represents a dip of 9% compared to Q2 2023. The figures indicate a cautious optimism among investors, who are gradually re-engaging with the market after heightened uncertainty.