Saudi startups outperform their regional counterparts in attracting venture investment during the first quarter of 2024.
Startups have outperformed Saudi Arabia It is ahead of its counterparts in the Middle East and North Africa region in terms of attracting bold investments in the first quarter of 2024.
This comes despite the decline in the rate of venture investment in Saudi startups by 42% on an annual basis in the first quarter of 2024, reaching $240 million across 35 deals, according to the venture investment report for the first quarter in the Kingdom, issued by the “Venture Investment Report” for the first quarter in the Kingdom, issued by the “Virtual Investment Report” platform. MAGNiTT“, which specializes in issuing venture investment data in Start-ups In the region.
Saudi startups outperform their regional counterparts
Saudi Arabia attracted 65% of the total venture capital investment raised by startups in the Middle East and North Africa region during the first quarter.
This confirms Attractiveness of the Kingdom’s market It enhances its competitive environment and consolidates the strength of the Kingdom’s economy as the largest economy in the region, and its leading position globally as a G20 country and a member of the BRICS group, which it recently joined.
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“Basket” is at the forefront of emerging companies
The pre-IPO round of the e-commerce application “Salla” accounted for more than half of the venture capital investment attracted by all Saudi startups during the first quarter of 2024.
It won $130 million in total venture capital investment in the Kingdom last March, and this round was the only mega deal in the region during the first quarter of 2024.
Venture capital investments are declining in the Middle East
The Middle East and North Africa region as a whole witnessed a decline in total venture investments during the first quarter of 2024, according to Philip Bahoshi, founder and CEO of Magnit.
Bahoshi continued: “While financing witnessed a decline, deal flow in Saudi Arabia remained almost constant, recording a modest decline of 13% in the first quarter of 2024 compared to the same quarter in 2023. Digging deeper, it becomes clear that despite the decline Overall financing, the Kingdom’s entrepreneurship ecosystem continues to attract investors.”
Performance of startup companies in the Kingdom
Three startups in the Kingdom raised a combined $4.8 million in April. This represents a 60% increase year over year compared to the $3 million raised by 3 startups in April 2023.
