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Venture Capital - Western Asia

Western Asia

The total capital raised in the Venture Capital market market in Western Asia is projected to reach US$18.4bn in 2024.
Early Stage dominates the market in Western Asia with a projected market volume of US$9.8bn in 2024.
In global comparison, most capital raised in Western Asia will be generated the United States (US$264,500.0m in 2024).
In Western Asia, Israel's Venture Capital market is thriving, with a focus on tech startups and innovation in sectors like cybersecurity and AI.

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

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Analyst Opinion

The Venture Capital market in Western Asia is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Western Asia have shifted towards investing in innovative and high-growth potential startups.

Entrepreneurs in the region are increasingly seeking funding from venture capitalists to fuel their business expansion and technological advancements. This preference for venture capital funding is driven by the desire for rapid growth and access to expertise and networks that can help startups scale quickly. Trends in the market indicate a growing interest in sectors such as technology, e-commerce, fintech, and healthcare.

Western Asia is home to a number of tech hubs and innovation centers, attracting both local and international investors. The region's young and tech-savvy population is driving the demand for innovative products and services, creating a favorable environment for venture capital investments. Local special circumstances also contribute to the development of the Venture Capital market in Western Asia.

Government initiatives and policies aimed at promoting entrepreneurship and innovation have played a crucial role in attracting venture capital investments. In addition, the presence of established companies and multinational corporations in the region provides opportunities for strategic partnerships and collaborations, further fueling the growth of the venture capital ecosystem. Underlying macroeconomic factors, such as economic stability and favorable investment climate, also contribute to the growth of the Venture Capital market in Western Asia.

The region has experienced steady economic growth in recent years, creating a conducive environment for venture capital investments. Additionally, the availability of skilled talent, infrastructure development, and supportive regulatory frameworks further enhance the attractiveness of Western Asia as a destination for venture capital funding. In conclusion, the Venture Capital market in Western Asia is witnessing significant growth and development due to customer preferences for innovative and high-growth startups, trends in sectors such as technology and healthcare, local special circumstances including government initiatives and strategic partnerships, and underlying macroeconomic factors such as economic stability and favorable investment climate.

These factors collectively contribute to the expansion of the venture capital ecosystem in Western Asia and create opportunities for startups and investors alike.

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.