Egypt’s startup ecosystem grows by 176% in 2021: Report – Markets & Companies – Business

The number of deals concluded in the country was the highest ever noted in the ecosystem, witnessing three consecutive half-yearly periods of growth in deal flow and funding activity, said the report.

Egypt placed second, following the UAE, in terms of the number of deals closed in 2021 with the majority of funding rounds being sized under $500,000.

The report stated that the five largest deals accounted for 53 percent of the total capital invested in the country in 2021.

It pointed out that the number of investors who financed Egyptian start-ups in 2021 rose to the highest number ever-growing by 65 percent year-on-year.

The number of exits jumped to an all-time high, as seven Egypt-based startups announced exits in 2021 – the highest in a single year.

Fintech-led deal flow activity in Egypt accounted for 17 percent of all deals closed in the country.

As per the report, the Egyptian VC ecosystem grew at a compound annual growth rate (CAGR) of 109 percent between 2015 and 2021.

Meanwhile, Egypt accounted for 15 percent of all transactions and 11 percent of all capital the Middle East and Africa attended in 2021.

In Magnitt’s report on VC in MENA, The region hit its all-time high in terms of VC investments in 2021 with a total of $2.6 billion, the highest investment sums the region has ever seen.

The report pointed out that the region recovered from the decline in VC deals in 2020 to register a new record count of 590 transactions in 2021, with a record-high number of 35 startups announcing exits in 2021.

“It was a record-breaking year across the board as the venture markets covered by Magnity, now including Africa, amassed a whopping $6.9 billion in capital across a record 1,328 deals,” said the report.

In 2021, Egypt Ventures – the government’s arm to support startups and entrepreneurship in the country – provided direct and indirect investments totaling EGP 92 million to support them, according to the Egyptian Ministry of International Cooperation.

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