Venture Capital - Iraq

Iraq

Highlights

The country in Iraq is expected to witness a Total Capital Raised in the Venture Capital market market reaching US$4.78m by 2024.
Early Stage is anticipated to dominate the market with a projected market volume of US$3.22m in the same year.
In global comparison, the United States is set to lead with the most Capital Raised generated, amounting to US$136.6bn in 2024.
Iraq's Venture Capital market is gradually emerging, with increasing interest from investors seeking opportunities in the country's growing tech and innovation sectors.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Iraq is experiencing significant development and growth.

Customer preferences: Investors in Iraq are increasingly turning to Venture Capital as a means of funding innovative and high-growth potential startups. This shift in customer preferences can be attributed to several factors. Firstly, there is a growing recognition of the importance of entrepreneurship and innovation in driving economic growth and job creation. Investors are realizing the potential for high returns on investment by supporting early-stage companies with innovative business models and technologies. Additionally, there is a desire among investors to diversify their portfolios and move away from traditional investment options such as real estate and oil.

Trends in the market: One of the key trends in the Venture Capital market in Iraq is the emergence of specialized funds focusing on specific sectors or industries. These funds are able to provide targeted support and expertise to startups operating in niche markets, which increases the likelihood of success. For example, there are funds that focus on technology startups, renewable energy projects, and healthcare innovations. This trend reflects the growing maturity and sophistication of the Venture Capital ecosystem in Iraq. Another trend in the market is the increasing participation of international investors. As Iraq continues to open up its economy and attract foreign investment, Venture Capital funds are benefiting from the expertise and capital brought in by international investors. This trend is contributing to the development of a more diverse and globally connected Venture Capital ecosystem in Iraq.

Local special circumstances: Iraq is a country with a young population and a high level of entrepreneurial spirit. This provides a fertile ground for the growth of the Venture Capital market. Furthermore, the government of Iraq has recognized the importance of supporting entrepreneurship and has implemented policies and initiatives to foster innovation and attract investment. These include the establishment of business incubators, tax incentives for startups, and the creation of a regulatory framework that supports Venture Capital investment.

Underlying macroeconomic factors: The development of the Venture Capital market in Iraq is also influenced by underlying macroeconomic factors. The country has a large and growing consumer market, which presents opportunities for startups to scale and expand. Additionally, Iraq has vast natural resources and a strategic geographic location, which can attract investment in sectors such as energy and logistics. These factors contribute to the overall attractiveness of the Iraqi market for Venture Capital investors. In conclusion, the Venture Capital market in Iraq is experiencing significant growth and development. This can be attributed to customer preferences for innovative and high-growth potential startups, the emergence of specialized funds, the increasing participation of international investors, local special circumstances such as a young population and government support for entrepreneurship, and underlying macroeconomic factors such as a large consumer market and abundant natural resources. As Iraq continues to open up its economy and attract investment, the Venture Capital market is expected to further expand and contribute to the country's economic growth.

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.