Start-ups in the Middle East and North Africa (MENA) region saw a 2% year-on-year (YoY) increase in total funding in Q1 2020, Dubai-based online start-up platform MAGNiTT said in its latest report.
According to the ‘Q1 2020 MENA Venture Investment Report’, MENA-based startups raised $277 million in the first 3 months of 2020.
This was largely attributed to a strong start of the year, with several startups raising large funding rounds in January and February.
The number of investment deals, on the other hand, painted a different level. In Q1 this year, 108 startup investment deals were recorded, down 22% from Q1 2019.
March 2020 alone saw a 67% YoY drop in transactions, which highlights the early effects of COVID-19.
“Most likely, we will not see the full impact of COVID-19 on the venture funding space for a few months. However, early indications have already shown a slowdown in funding announcements, as startups and investors re-evaluate their positions in this new environment,” said Philip Bahoshy, founder and CEO, MAGNiTT.
While investors are still actively looking to invest, the true ramifications of COVID-19 are not expected to be seen until several months after the start of the crisis, he further noted.
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