MAGNiTT, the largest verified data platform tracking venture capital investments across emerging markets, released the 2023 edition of its annual Emerging Venture Markets Report today. The report continues MAGNiTT’s tradition of analysing and comparing VC investments in technology startups headquartered in the Middle East, Africa, Pakistan, and Turkey (MEAPT) region.
Topline data from MAGNiTT’s latest report reveals sustained levels of funding – exceeding $7 billion for the second year in a row – and a steady number of transactions in MEAPT, driven by a record first quarter in 2022. However, further analysis shows a decline in funding and deals in subsequent quarters – in line with a worldwide pullback in venture investing – reflecting caution by VCs as a result of several macroeconomic developments and a climate of general uncertainty.
Within Emerging Venture Markets (EVMs), the MENA region continues to attract significant interest, surpassing its 2021 funding levels and crossing the $3 billion mark in 2022. This increase was largely driven by a 72% jump in funding for Saudi Arabian startups, while Egypt led the number of deals in MENA at 160 transactions. Africa saw close to $3 billion of investment as well, driven by Nigerian startups raising 29% of funding and closing 198 deals. Meanwhile, Turkey led EVMs overall in number of deals, with 295 transactions in 2022.
Philip Bahoshy, Chief Executive Officer of MAGNiTT, commented on the report by saying, “The venture investment landscape across the markets we cover was turbulent in 2022, echoing the global industry. We saw record highs in Q1 followed by rapid realignment as macroeconomic challenges took hold. Interestingly, deeper analysis of the data showed greater complexity in terms of investment divergence and funding success across the different geographies.
Bahoshy added, “More than ever, and particularly during this uncertain environment, there is greater engagement from governments, regulators, investors, and founders with the real-time analytics and the unprecedented depth and verification we are able to deliver via the MAGNiTT data platform. As we prepare to expand into Southeast Asia this year and launch a new predictive analytics capability, we can only anticipate greater progress for this promising industry, supported by robust policy- and decision-making that is driven by insightful data.”
Pakistan Highlights
1. Pakistan-headquartered startups raised $315 million in funding across 72 deals, with six exits in 2022
2. More than half the funding that Pakistan saw was covered by its top five deals in 2022.
3. Although the number of deals in Pakistan fell by 20% in 2022, funding declined by only 5.4%.
4. Exits reported in Pakistan tripled in 2022, thereby exceeding the exits of the last five years combined