Venture Capital - Egypt

Egypt

Highlights

The country in Egypt is projected to reach a Total Capital Raised of US$38.51m in the Venture Capital market market by 2024.
Early Stage holds dominance in the market with a projected market volume of US$16.85m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised with US$136.6bn in 2024.
Egypt's Venture Capital market is gaining momentum, with increased investor interest in tech startups driving the capital raising landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Egypt has been experiencing significant growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Entrepreneurs in Egypt are increasingly turning to venture capital as a source of funding for their startups. This is due to the fact that venture capital provides not only financial support, but also strategic guidance and industry expertise. Startups are attracted to venture capital firms that have a track record of success and a strong network of connections, as these factors can greatly enhance their chances of success. Additionally, entrepreneurs appreciate the flexibility that venture capital offers, as it allows them to focus on their core business while the venture capital firm takes care of the fundraising and financial management aspects.

Trends in the market: One of the key trends in the Venture Capital market in Egypt is the increasing number of venture capital firms and funds. This is a result of the growing interest in entrepreneurship and the recognition of the potential of startups to drive economic growth. As a result, both domestic and international venture capital firms are establishing a presence in Egypt, providing entrepreneurs with a wider range of funding options. Furthermore, there is a trend towards sector-specific venture capital funds, which focus on industries such as technology, healthcare, and renewable energy. This specialization allows venture capital firms to provide more targeted support to startups in specific sectors.

Local special circumstances: Egypt has a young and dynamic population, with a high proportion of tech-savvy individuals. This has created a fertile ground for innovation and entrepreneurship, and has attracted the attention of venture capital firms. Additionally, the Egyptian government has implemented several initiatives to support startups and encourage investment in the country. These include the establishment of startup incubators and accelerators, as well as the introduction of tax incentives for investors in startups. These local special circumstances have created an ecosystem that is conducive to the growth of the Venture Capital market in Egypt.

Underlying macroeconomic factors: The Venture Capital market in Egypt is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth in recent years, which has created a favorable environment for startups. Additionally, the government's focus on economic diversification and the promotion of innovation has further contributed to the growth of the Venture Capital market. Furthermore, the increasing interest in Egypt from international investors and the presence of multinational corporations in the country have also had a positive impact on the Venture Capital market, as they provide startups with access to global markets and resources. In conclusion, the Venture Capital market in Egypt is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Entrepreneurs are increasingly turning to venture capital as a source of funding, and there is a growing number of venture capital firms and funds in the country. The young and dynamic population, government initiatives, and favorable macroeconomic conditions have all contributed to the growth of the Venture Capital market in Egypt.

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.