Venture Capital - Jordan

Jordan

Highlights

The country in Jordan is projected to reach a Total Capital Raised of US$27.08m in the Venture Capital market market in 2024.
In Jordan, Early Stage dominates the market with a projected market volume of US$14.89m in 2024.
In global comparison, the United States is expected to generate the most Capital Raised with US$136.6bn in 2024.
Jordan's Venture Capital market is gaining momentum, with increased interest from local and international investors fueling innovation and growth in startups.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Venture capital investments in Jordan have been steadily increasing over the past few years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Jordan have shifted towards entrepreneurship and innovation, with a growing number of individuals and businesses seeking funding for their ideas and projects.

This increased interest in venture capital has created a favorable environment for investors, who are eager to support promising startups and early-stage companies. Furthermore, customers in Jordan are increasingly looking for opportunities to diversify their investment portfolios and seek higher returns, making venture capital an attractive option. In line with these customer preferences, the venture capital market in Jordan has witnessed several key trends.

Firstly, there has been a rise in the number of venture capital firms and angel investors operating in the country. These investors are actively seeking out innovative startups and providing them with the necessary funding and support to grow and succeed. Additionally, there has been a growing trend of international venture capital firms and investors showing interest in the Jordanian market, further fueling the growth of the sector.

Local special circumstances have also played a significant role in the development of the venture capital market in Jordan. The country has a strong entrepreneurial culture, with a growing number of young and talented individuals starting their own businesses. This pool of talent, combined with a supportive ecosystem that includes incubators, accelerators, and government initiatives, has created a fertile ground for venture capital investments.

Furthermore, Jordan benefits from its strategic location, serving as a gateway to regional markets and providing access to a large consumer base. Underlying macroeconomic factors have also contributed to the growth of venture capital investments in Jordan. The country has experienced relatively stable economic growth in recent years, with a focus on diversifying the economy and promoting innovation.

Government policies and initiatives aimed at supporting entrepreneurship and attracting foreign investments have further boosted the venture capital market. Additionally, Jordan benefits from a strong education system and a skilled workforce, which are attractive to investors looking for promising startups to invest in. Overall, the venture capital market in Jordan is developing at a steady pace, driven by customer preferences for entrepreneurship and innovation, market trends such as the rise of venture capital firms and international investors, local special circumstances including a supportive ecosystem and strategic location, and underlying macroeconomic factors such as stable economic growth and government policies.

These factors combined create a conducive environment for venture capital investments and bode well for the future growth of the sector in Jordan.

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.