Egyptian startups are embracing the largest number of investment deals in the region to enhance entrepreneurship
By ; Nahla Muqalad
Engineer Hala El Gohary, Chief Executive Officer of the Information Technology Industry Development Agency (ITIDA), revealed the recently released report by Magnet, which tracks the values and number of exit deals and investments in startups in the MENA region during 2019.
She pointed out that the report placed Egypt in the first place for the first time in terms of the number of investment deals in Egyptian startups, which reached their highest levels ever, which confirms that we are on the right path and reflects the maturity of the entrepreneurial climate in Egypt and the steady growth witnessed by the availability of technological skills and the direction of youth Al-Masry towards establishing private entrepreneurship based on innovative solutions that attract capital and investor interest.
Al-Gohary clarified that the Egyptian telecommunications and information technology sector is one of the pioneering sectors in the interest in qualifying young cadres and spreading the business culture.
According to MAGNiTT's "Emerging Projects 2019" report, 2019 saw a new record of 564 investments in startups in the MENA region, totaling $ 704 million, as it increased The number of deals increased by 31%, and the total financing value increased by 12% compared to 2018, after excluding the two exit deals from Souk and Karim.
According to the report, 2019 saw $ 15 million in funds in 5 deals, which means that total financing increased at a CAGR of 47% and deals increased at a CAGR of 60% over the past decade. In other words, the region made a quantum leap in just 10 years.
The report pointed out that one of the main drivers of this increase is government support, as over the past few years, governments have increasingly focused on entrepreneurship and startups through the launch of funds, matching programs, accelerators, licensing of emerging projects, investment companies and many other initiatives.
It is worth noting that Magnet is one of the prominent startups in the field of collecting and auditing data for startups through the follow-up and monitoring of investments and acquisitions, and provides a deep analysis of the entrepreneurial climate and emerging projects in the MENA region.