Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Northern Africa

Northern Africa

The country in question, in Northern Africa, is expected to see Total Capital Raised in the Venture Capital market market reach US$620.6m in 2024.
Later Stage is set to dominate the market with a projected market volume of US$487.9m in 2024.
When compared on a global scale, the United States is anticipated to lead in Capital Raised, with US$264,500.0m in 2024.
In Northern Africa, Egypt's Venture Capital market is rapidly expanding, attracting international investors seeking opportunities in tech startups.

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

Market

Region

Region comparison

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Analyst Opinion

The Venture Capital market in Northern Africa is experiencing significant growth and development in recent years.

Customer preferences: Entrepreneurs and startups in Northern Africa are increasingly seeking venture capital funding to fuel their growth and innovation. This is driven by a number of factors, including the desire to access capital for expansion, the need for expertise and mentorship from experienced investors, and the opportunity to leverage the networks and connections of venture capital firms. Additionally, many entrepreneurs see venture capital as a way to validate their business ideas and gain credibility in the market.

Trends in the market: One major trend in the Venture Capital market in Northern Africa is the increasing number of venture capital firms and funds that are focusing on the region. These firms are recognizing the untapped potential and the growing entrepreneurial ecosystem in countries like Egypt, Morocco, and Tunisia. As a result, they are actively seeking investment opportunities and providing much-needed capital to startups and early-stage companies. Another trend in the market is the diversification of sectors that are attracting venture capital investment. While traditionally, sectors like technology and e-commerce have dominated the venture capital landscape, there is now a growing interest in sectors such as renewable energy, healthcare, and fintech. This diversification is driven by both the increasing demand for innovative solutions in these sectors and the recognition of the potential for high returns on investment.

Local special circumstances: Northern Africa is home to a young and dynamic population, which is driving innovation and entrepreneurship in the region. This youth demographic is increasingly tech-savvy and is leveraging technology to solve local challenges and create new business opportunities. The region also benefits from a strong educational system, producing a skilled workforce that is attractive to venture capital investors. Furthermore, governments in Northern Africa are actively supporting the growth of the venture capital ecosystem. They are implementing policies and regulations that promote entrepreneurship, providing incentives for venture capital investment, and establishing incubators and accelerators to nurture startups. These initiatives are creating a favorable environment for venture capital investment and fostering a culture of innovation and entrepreneurship.

Underlying macroeconomic factors: The Venture Capital market in Northern Africa is also influenced by macroeconomic factors. Economic stability and growth in the region are attracting both local and international investors. Additionally, the increasing connectivity and integration of Northern African economies with the global market are creating opportunities for startups to scale and expand beyond their local markets. In conclusion, the Venture Capital market in Northern Africa is experiencing significant growth and development, driven by customer preferences for capital, expertise, and networks. The market is characterized by the increasing number of venture capital firms and funds focusing on the region, as well as the diversification of sectors attracting investment. Local special circumstances, such as a young and dynamic population and government support, are further fueling the growth of the market. Finally, underlying macroeconomic factors, including economic stability and global connectivity, are creating favorable conditions for venture capital investment in Northern Africa.

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.