In June 2024, startups in the Middle East and North Africa (MENA) area raised $116 million, a 59% decrease from May 2024.

$15 million was raised by four Egyptian businesses, which is the second-highest amount after the United Arab Emirates (UAE), whose startups lead the region in investment with $82.5 million raised through 15 agreements.

The fintech sector drew the most funding in June 2024, attracting $38 million across 10 deals, with con-tech (construction tech) trailing closely. Additionally, three prop-tech startups secured $19.6 million, falling behind their previous lead from May 2024.

The Web3 sector raised $5.5 million, which is more than five times the $1 million that was raised in May 2024. The total amount raised by the Web3 sector in H1 2024 is $47.6 million.

• Most of June 2024’s funding was directed towards the pre-Series A stage, with four startups receiving $45 million
• This was followed by the Seed stage, where five startups raised $27.3 million
• Despite this, early-stage startups continue to draw significant investor interest, as eight pre-seed startups secured $3 million, and
• Another eight obtained $140,000 in grants

In June, the majority of funding went to business-to-business (B2B) firms, which raised $66.4 million in 18 deals, or 74% of the overall investment. Meanwhile, 20 B2C businesses raised $49.5 million. Startups in the area have raised $882 million in total since the beginning of 2024, which is a 46% decline in total funding in H1 2024 compared to the $1.6 billion reported in the same period in 2023. Due to the impact of the Gaza War on the startup ecosystem, both domestic and foreign venture capital firms (VC) have decided to take a “wait-and-see” approach.

• The UAE maintained its position as the leading destination for startup investments with 91 UAE-based startups raising $455.5 million in H1 2024, a decrease from the $604 million secured in H1 2023
• Saudi Arabia followed, attracting $300 million in total funding, down from $554 million the previous year [2023]
• The Egyptian startup ecosystem saw just 33 startups raising $83 million, an 80% decline from the same period last year [2023]
• On the other hand, the Moroccan ecosystem is gaining momentum with six of its startups receiving $12.5 million in H1 2024