Global Ventures: Building Tech Titans in the MENA Region
Updated 5/14/2024 8:00:00 AM
Arab Finance: The Middle East and North Africa (MENA) region is witnessing a surge in innovation, with homegrown startups tackling regional challenges and showcasing global potential.
At the forefront of this phenomenon is Global Ventures, a leading venture capital firm dedicated to empowering visionary founders across MENA. Founded in 2018, Global Ventures has identified a blossoming entrepreneurial ecosystem where tech-enabled solutions address critical needs.
So, Arab Finance sat down with Noor Sweid, Founder and Managing Partner of Global Ventures, to delve into the firm's investment philosophy, the exciting trends shaping the MENA tech landscape, and their commitment to fostering a diverse and inclusive ecosystem for entrepreneurs.
1-What inspired the founding of Global Ventures, specifically with a focus on the MENA region?
Founding Global Ventures in 2018 stemmed from a drive to support a budding and promising entrepreneurial ecosystem. This is when founders were leveraging cutting-edge technology to build innovative solutions for MENA and the world.
One of the most impeding challenges for entrepreneurs in the region is access to capital, with the venture ecosystem still nascent. Total funding reached $2.6 billion in 2023, while global startup investment hit $285 billion.
Witnessing the untapped potential of regional entrepreneurs and the breadth of opportunities in their diverse markets, youth, and fast-growing population, I found not only innovative ideas with global applicability but also the need to invest and provide the necessary resources to support their scale.
MENA’s dynamic landscape presented an exciting opportunity, and we have witnessed the region validated as an investment destination in recent years.
There has been increasing interest from international venture capital firms and institutions—for example, PayPal Ventures’ participation in the most recent fundraise from Paymob, MENAP’s leading financial services enabler. Sequoia led a Series A round investing in a UAE-based prop-tech startup, Huspy.
Considering 60% of the MENAP region is under 30 years old, with an internet penetration rate of 85%, the opportunity to use technology to solve regional pain points and beyond while leapfrogging legacy infrastructure was and is considerable.
Beyond the financial impact and returns we have seen – the social impact has also been hugely rewarding. Global Ventures portfolio companies have financially ‘included’ over 64 million people, given healthcare access to over 5.8 million patients, and created 11,114 jobs since investment.
2-What sectors are you currently focusing on for investment? And what stage of startups are you interested in (e.g., seed, Series A, later stage)?
Our investment decisions are guided by a five-year forecast for sectors experiencing significant change and advancement, anticipating the most relevant and needed solutions.
We conduct thorough research into markets, sectors, and trends to build the thesis that ultimately guides our investment decisions. MENA markets have wide pockets of whitespace, creating several opportunities across industries.
We are largely sector-agnostic, investing across a range of sectors, from fintech and digital health to edutech and e-commerce.
In the next five years, we believe that applying technology will be particularly impactful and disruptive in the supply chain and agriculture sectors. The agriculture industry is at a crossroads, facing challenges, such as resource scarcity, supply chain disruptions, and climate change.
Moreover, we foresee innovation in agriculture to accelerate over the next decade, with agri-tech entrepreneurs across the Middle East and Africa (MEA) leading the growth opportunities in food production.
The global nature of today's supply chains has reduced their capacity to promptly meet the demands of consumers and withstand both external and internal shocks. This is driving a growing movement for localization to securitize and future-proof supply chains.
The future of supply chains—digital, local, and sustainable—is already being built and spearheaded by innovators across regional markets.
We recently invested in Immensa, MENA's leading additive manufacturing and digital inventory company, which serves the global energy spare parts market, a largely untapped sector valued at $91 billion, of which the Middle East comprises 35%.
Our investment focus spans various stages, from seed to Series B, allowing us to engage with dynamic founders and startups at different points in their growth journey.
3-How actively do you engage with your portfolio companies? What kind of support do you provide?
We are deeply involved with our portfolio companies, offering more than just financial support. Growth companies need assistance in identifying their strategic objectives, mission, and purpose.
We provide knowledge and support to our portfolio companies in all aspects of their businesses. Our unique partner value creation framework has seven pillars: process, ambition, reputation, talent and recruitment, network, expansion, and raising.
This spans offerings such as executive coaching, team development, strategic guidance, and mentorship based on the extensive experience of our team.
We must provide best practice guidance on corporate finance, governance, control processes, and regulatory compliance, as this area frequently requires a lot of focus and understanding. As a result of this, portfolio companies can expand into new markets and execute additional fundraisers.
Talent and recruitment are key elements. We help our portfolio companies identify and recruit top management, including creating systems for hiring and retaining talent.
Reputation and a brand image’s contribution to value have also never been more important with the rise of social channels and a competitive landscape for funding and partnerships. Global Ventures provides strategic introductions, enabling businesses to access trusted partners and generate revenue via client acquisition.
We provided strategic guidance and insight to Iyris, a leading agritech whose pioneering technology advances commercial farming in hot climates globally, as the company has grown from one to 11 markets now.
Our fundamentally tailored investment models are grounded in a hands-on approach, and close work with founders to navigate challenges and opportunities alike.
4-Global Ventures has made direct investments in several Egyptian startups. What are some of the key factors that led you to invest in these specific companies?
Our investments in Egyptian startups are guided by their innovative solutions, strong leadership, and potential for scalability. We look for ventures aligned with our focus areas, demonstrating market traction, and with a solid business strategy.
Founders’ entrepreneurial spirit and commitment to making a meaningful impact on their respective industries are also crucial factors in our investment decisions.
To date, we have invested in 11 Egyptian startups across various sectors, including health, logistics, and e-commerce.
With almost two-thirds of Egypt’s young and tech-savvy population still unbanked in 2021, we noticed a real potential to bring about change and financially include more people via platforms like Paymob and Thndr. We also identified a substantial need for digital health and medicine access.
With the Egyptian pharmaceutical market valued at $3 billion, Yodawy seized the opportunity to make pharma-retail accessible, affordable, and frictionless for millions of Egyptians, leading to our investment. We are proud of all our investments in Egypt and their social and financial impact.
5-How do Global Ventures’ partnerships with MEVCA and GPCA contribute to the venture capital industry’s growth and development in the Middle East?
The partnership between the Middle East Venture Capital Association and the Global Private Capital Association is a pivotal step toward advancing the venture capital industry in the Middle East.
By leveraging the collective expertise and networks of both associations, we are facilitating greater collaboration, knowledge sharing, and resource mobilization. This collaboration will elevate the region’s profile on the global stage and also provide a robust framework for nurturing and scaling innovative ventures in the region.
6-What are some of the most exciting trends you see in the Middle East’s startup ecosystem?
The startup ecosystem in the Middle East is experiencing an exciting surge in innovation across various sectors. As the region evolves, startups present a plethora of opportunities to transform industries and address key pain points, showcasing immense leapfrogging potential.
One of the most notable trends is the evolution of artificial intelligence (AI) with startups, regulators, and financial players creating innovative solutions.
PwC projects AI to contribute $320 billion in value to the MENA region by 2030. UAE's Spidersilk leverages AI for proactive cybersecurity, while Egypt's government has adopted policies like the National Artificial Intelligence Strategy to encourage tech startups.
Supply chain tech is another exciting sector, with companies investing in Industry 4.0 technologies like additive manufacturing to create local, agile supply chains. The UAE's industrial manufacturing sector aims to double its contribution to GDP by 2031.
Immensa, MENA's leading additive manufacturing startup, is digitizing warehouses and creating agile supply chains in the $91 billion global energy spare parts market.
Fintech continues to thrive, with Tabby becoming the region's first fintech unicorn. While the industry is still untapped, the focus remains on financial solutions for small-to-medium businesses across MEA. Significant opportunities exist in enterprise fintech, which are more meaningfully served in mature economies.
Agritech is flourishing, driven by the need for solutions that mitigate food insecurity. Lyris offers a scalable, efficient greenhouse that grows salt-tolerant crops using saltwater and sunlight. Seafood Souq, a platform for global seafood trade, has facilitated a volume equivalent to 2.5 million plates served in 25 countries.
These trends showcase the Middle East's potential to become a hub for innovation, attracting startups, investors, and talent worldwide.
7-As one of the first women in the Middle East to run a venture capital fund, how do you plan to support women entrepreneurs and start their businesses?
While ecosystem support for female entrepreneurs is improving, a continued focus is needed to create an inclusive ecosystem for women where funding is readily available. With more women joining investment committees across MENA, investors benefit from broader, more inclusive, and diverse viewpoints on businesses to invest in.
In 2020, female-founded companies reported twice the return per dollar invested than their male counterparts. At Global Ventures, we actively seek opportunities to support and invest in women-led startups because diversity in founding teams yields results.
Two women-founded portfolio companies we have invested in are Almouneer and Proximie. Co-founded by Rania Kadry and Noha Khater, Almouneer raised $3.6 million in the fourth quarter (Q4) of 2023 to further scale its platform for treating obesity and diabetes. In Q2 2022, Proximie, a health tech startup focused on digitizing operating rooms and founded by Nadine Hachach Haramf, raised $80 million.
Beyond funding, we aim to provide mentorship, networking opportunities, and a platform for women entrepreneurs to thrive. By fostering an inclusive ecosystem, we hope to inspire and empower more women to pursue and succeed in entrepreneurship.
We previously partnered with Playfair Capital to launch Female Founder Office Hours (FFOH) across MENA to connect women founders to local and international investors to build new relationships, find new mentors, and secure funding.
8-In your view, what are the key factors contributing to the ongoing success of the Egyptian startup ecosystem?
Several factors contribute to the success of Egypt’s startup ecosystem. Egypt’s sheer size is an important contributor. Egypt has a large and diverse population that is largely underserved across vital sectors, including healthcare, financial services, education, and commerce.
Startups operating in these sectors benefit from a sizable and untapped customer base. One example from our portfolio is Paymob, which holds approximately 80% of the market share for mobile wallets processed in Egypt.
Among Egypt’s large population lie creative minds and a strong entrepreneurial drive. Investing in Egypt powers the country’s undoubtedly high volume of talent to leverage its impressively existing infrastructure.
The vitality of startups, with their innovative and disruptive impact, helps them access some of the market’s hitherto untapped potential. Egypt is extremely tech-savvy, with 97.3% of the total population being a youthful demographic with mobile connections, as the median age is 24.2 years. This further provides fertile ground for innovation and talent.
Lastly, Egypt’s geographical location on the northeastern edge of Africa and proximity to West Asia make it a springboard for companies to expand into or out of Africa to other regions.
This is reflected in investment trends. When focusing on individual sectors, fintech and fintech-enabled venture capital investments have increased over the last three years, reaching a new record high of $358.8 million in 2022, marking a greater increase of 28.7x compared to 2019.
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