Venture capital activity in the Middle East and North Africa increased by 28% in 2011, according to the Second Annual Venture Capital in MENA Report released today by the MENA Private Equity Association. While the region’s VC industry is still in the early phases of development, the rise in activity reflects increased optimism for small business growth amongst entrepreneurs, investors, and governments – despite macro-level challenges that persist in some countries. Key findings from the report include:
– From 2009 to 2011, 120 VC transactions were completed compared to just 62 from 2006 to 2008. In 2011, 46 deals were completed, up from 36 in 2010.
– Morocco claimed the majority of deals since 2006 with 57% followed by Egypt and Lebanon both with 9%.
– The IT & Software sector continued to lead deal-making, capturing 46% of transactions since 2006.
“The venture capital industry has seen positive progress in the last 12 months,” said Ghazi Ben Othman, Head of Asset Management for Malaz Capital and a member of the MENA Private Equity Association VC Taskforce. “We are encouraged to see more interest from investors, much more entrepreneurial activity and many private and public initiatives to support budding entrepreneurs. The region has also seen successful exits and increasing interest from international investors over the last year.”
International and local investors are increasingly focused on opportunities for small business creation and innovation arising in the wake of the Arab Spring. Tarek Kabrit, Principal at Abraaj Capital and member of the VC Taskforce, comments: “Although small in size, innovative, high-growth companies are disproportionately important for economic growth. Governments and stakeholders are beginning to realize more and more that the future prosperity of the region depends on our ability to support these businesses.”
The report, which was produced in collaboration between the MENA Private Equity Association, the Association’s VC Taskforce, KPMG, Zawya and industry professionals, is available at: www.menapea.com/research. The MENA Private Equity Association is a non-profit entity committed to supporting and developing the private equity and venture capital industry in the Middle East and North Africa.
The Association aims to foster greater communication within the region’s private equity and venture capital network and facilitate knowledge sharing in order to encourage overall economic growth, and will actively promote the industry’s successes to local stakeholders and build trust with investors, regulators and the public regionally and internationally.
Venture capital activity in the Middle East and North Africa increased by 28% in 2011, according to the Second Annual Venture Capital in MENA Report released today by the MENA Private Equity Association. While the region’s VC industry is still in the early phases of development, the rise in activity reflects increased optimism for small business growth amongst entrepreneurs, investors, and governments – despite macro-level challenges that persist in some countries. Key findings from the report include:
– From 2009 to 2011, 120 VC transactions were completed compared to just 62 from 2006 to 2008. In 2011, 46 deals were completed, up from 36 in 2010.
– Morocco claimed the majority of deals since 2006 with 57% followed by Egypt and Lebanon both with 9%.
– The IT & Software sector continued to lead deal-making, capturing 46% of transactions since 2006.
“The venture capital industry has seen positive progress in the last 12 months,” said Ghazi Ben Othman, Head of Asset Management for Malaz Capital and a member of the MENA Private Equity Association VC Taskforce. “We are encouraged to see more interest from investors, much more entrepreneurial activity and many private and public initiatives to support budding entrepreneurs. The region has also seen successful exits and increasing interest from international investors over the last year.”
International and local investors are increasingly focused on opportunities for small business creation and innovation arising in the wake of the Arab Spring. Tarek Kabrit, Principal at Abraaj Capital and member of the VC Taskforce, comments: “Although small in size, innovative, high-growth companies are disproportionately important for economic growth. Governments and stakeholders are beginning to realize more and more that the future prosperity of the region depends on our ability to support these businesses.”
The report, which was produced in collaboration between the MENA Private Equity Association, the Association’s VC Taskforce, KPMG, Zawya and industry professionals, is available at: www.menapea.com/research
About the MENA Private Equity Association
The MENA Private Equity Association is a non-profit entity committed to supporting and developing the private equity and venture capital industry in the Middle East and North Africa. The Association aims to foster greater communication within the region’s private equity and venture capital network and facilitate knowledge sharing in order to encourage overall economic growth, and will actively promote the industry’s successes to local stakeholders and build trust with investors, regulators and the public regionally and internationally
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