Venture Capital - Bahrain

  • Bahrain
  • The country of Bahrain is projected to see a Total Capital Raised in the Venture Capital market market reaching US$97.9m in 2024.
  • Early Stage investments are expected to dominate the market with a projected market volume of US$49.6m in 2024.
  • When compared globally, the United States will lead in Capital Raised, with US$264,500.0m expected in 2024.
  • Bahrain's Venture Capital market is seeing a surge in tech startups attracting significant investments, positioning the country as a regional innovation hub.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

 
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Analyst Opinion

The Venture Capital market in Bahrain has been steadily growing in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences:
Bahrain's Venture Capital market has been attracting both local and international investors due to its favorable business environment and government support. Investors are drawn to Bahrain's strategic location, which provides easy access to the Gulf Cooperation Council (GCC) market and beyond. Additionally, the country's well-established financial sector and regulatory framework offer a level of stability and transparency that is highly valued by investors.

Trends in the market:
One of the key trends in Bahrain's Venture Capital market is the increasing focus on technology and innovation. Startups in sectors such as fintech, e-commerce, and healthtech have been receiving significant investments, as investors recognize the potential for growth and disruption in these industries. This trend is driven by the global shift towards digitalization and the increasing demand for innovative solutions. Another trend in Bahrain's Venture Capital market is the emergence of specialized funds and accelerators. These entities provide funding, mentorship, and resources to startups in specific sectors, such as fintech or clean energy. By focusing on niche areas, these funds can leverage their expertise and networks to support the growth of startups and drive innovation in targeted industries.

Local special circumstances:
Bahrain's small size and close-knit business community create a conducive environment for startups and investors. The country's entrepreneurial ecosystem is characterized by collaboration, with startups, investors, and government entities working together to foster innovation and growth. This collaborative approach helps startups access the necessary support and resources, while investors benefit from a network of like-minded individuals and organizations. Furthermore, Bahrain's regulatory framework is designed to encourage investment and entrepreneurship. The government has implemented various initiatives to facilitate the establishment and growth of startups, including streamlined processes for business registration, access to funding, and support for research and development activities. These initiatives have helped create a favorable environment for startups and investors alike.

Underlying macroeconomic factors:
Bahrain's Venture Capital market is also influenced by underlying macroeconomic factors. The country's strong economic growth, driven by sectors such as financial services, manufacturing, and tourism, provides a solid foundation for investment opportunities. Additionally, Bahrain's young and tech-savvy population, coupled with its high internet penetration rate, creates a conducive market for technology-driven startups. Furthermore, Bahrain's government has been proactive in diversifying the economy and reducing dependence on oil revenues. This diversification strategy has included a focus on the development of the startup ecosystem and the attraction of foreign direct investment. By promoting innovation and entrepreneurship, the government aims to create new sources of economic growth and job opportunities. In conclusion, the Venture Capital market in Bahrain is developing due to customer preferences for a favorable business environment, trends in technology and innovation, local special circumstances such as collaboration and supportive regulations, and underlying macroeconomic factors such as economic growth and diversification efforts. These factors combined have created a vibrant ecosystem that attracts both local and international investors, and supports the growth of startups in Bahrain.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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