Venture Capital - Morocco

Morocco

Highlights

In Morocco, the Total Capital Raised in the Venture Capital market market is expected to reach US$150.10m by 2024.
The Later Stage market is set to lead the market with a projected market volume of US$133.70m in 2024.
When compared globally, the United States is anticipated to generate the highest Capital Raised amount, reaching US$136.6bn by 2024.
Morocco's Venture Capital market is gaining traction, with a growing number of startups attracting investments from both local and international investors.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Morocco has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Moroccan entrepreneurs are increasingly seeking alternative sources of funding for their startups, beyond traditional bank loans. This is due to the fact that Venture Capital firms offer not only financial support, but also expertise and mentorship, which can be crucial for the success of early-stage companies. Additionally, many entrepreneurs are attracted to the idea of partnering with Venture Capital firms that have a strong track record of successful investments, as this can help to enhance their own credibility and attract additional funding in the future.

Trends in the market: One of the key trends in the Venture Capital market in Morocco is the increasing focus on technology startups. With the rise of digital transformation and the growing importance of technology in various industries, there has been a surge in demand for innovative solutions. Venture Capital firms have recognized this trend and are actively seeking out opportunities to invest in tech startups that have the potential for high growth and scalability. Another trend in the market is the emergence of sector-specific Venture Capital funds. These funds focus on particular industries or sectors that are experiencing rapid growth and have high potential for returns. For example, there are now Venture Capital funds in Morocco that specifically target renewable energy startups, reflecting the country's commitment to sustainable development and the growing demand for clean energy solutions.

Local special circumstances: Morocco's strategic location at the crossroads of Europe, Africa, and the Middle East has made it an attractive destination for foreign investors. The government has also implemented a number of initiatives to promote entrepreneurship and attract investment, such as the creation of startup incubators and the establishment of special economic zones. These factors have contributed to the growth of the Venture Capital market in Morocco, as both local and international investors recognize the country's potential for economic growth and innovation.

Underlying macroeconomic factors: Morocco's stable macroeconomic environment and ongoing economic reforms have created a favorable climate for Venture Capital investment. The country has experienced steady economic growth in recent years, with a focus on diversifying the economy and reducing reliance on traditional sectors such as agriculture. This has created new opportunities for startups and has attracted the attention of Venture Capital firms looking to capitalize on the country's potential. Furthermore, Morocco's young and increasingly educated population is driving innovation and entrepreneurship. The government has also been supportive of initiatives to promote entrepreneurship and innovation, such as providing funding and resources to startups. These factors, combined with the country's growing middle class and increasing consumer purchasing power, have created a fertile ground for Venture Capital investment in Morocco. In conclusion, the Venture Capital market in Morocco is experiencing significant growth due to customer preferences for alternative funding sources, the increasing focus on technology startups, the emergence of sector-specific funds, local special circumstances such as government support and a favorable macroeconomic environment, and underlying factors such as Morocco's strategic location and young, educated population. These trends and developments bode well for the future of the Venture Capital market in Morocco, and the country is likely to continue attracting both local and international investors in the coming years.

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.