MENA offering exciting opportunities for VCs and startups

In an article in Gulf Business, Why the MENA region offers exciting opportunities for VCs, startups, Jane Khedair, Executive Director of London Business School’s Institute of Entrepreneurship and Private Capital (IEPC), reflects on why the MENA region is in the spotlight for VC and start-up opportunities.

It was recently reported in the Financial Times that leading US technology venture capitalists (VCs) such as Andreessen Horowitz, Tiger Global and IVP have been flying out teams of executives to Saudi Arabia, the UAE and Qatar.

“Eight thousand miles might be considered a long way to travel for any business trip with virtual meetings now being accepted as the norm in these circumstances, but one may argue that there’s no substitute for in-person interaction. A confluence of the effects of the crisis in Ukraine, entrenched inflation and rising energy costs means that downside risks dominate the outlook producing tighter financial conditions. As such traditional North American and European backers are having to contend with a severe economic downturn that has forced them to retreat from private investments,” writes Jane.

“Venture capitalists are sitting on a record $300bn of “dry powder” we have recently learned. This is money raised that has not yet been deployed. But many are struggling to find lucrative investments in startups and will be unable to raise a new venture fund. Cash that VCs put into startups has fallen more than 50 per cent over the past 12 months, according to data provider Crunchbase.”

For more information, please read the full article here.