• US-based venture capital firm 500 Global launches the 500 MENA L.P fund. 
• They are dedicating it to investing in high growth technology startups across MENA. 
• The fund aims to address the critical funding gap MENA founders face specifically in their expansion stage.

US-based venture capital firm 500 Global launches the 500 MENA L.P fund. They are dedicating it to investing in high growth technology startups across MENA. 

The fund is backed by prominent Saudi institutional investors such as Jada Funds of Funds, a Public Investment Fund, and Saudi Venture Capital (SVC). In addition, they are also supported by Sanabil Investments as part of their ongoing partnership.

Funding Gap

The fund will focus on high growth startups within MENA from both outside and inside the current 500 Global portfolio. In addition, they are positioning themselves to support startups beyond the seed stage. This with the aim of accelerating the growth of the MENA region’s thriving tech ecosystem.

The fund will focus on startups with proven product-market fit and significant growth potential. In addition, they will aim to address the critical funding gap MENA founders face specifically in their expansion stage. 5OO Global aims to support these startups through their international network and comprehensive platform. Thus, enabling startups to build and scale innovative solutions regionally and globally

“We are thrilled to fuel the next wave of tech champions in the MENA region, driving innovation and economic growth as digital transformation accelerates across key economies,” saidAmjad Ahmad, Managing Partner, 500 Global MENA. “

Expanding into MENA

Recently, the MENA region has seen a surge in startup activity in which funding has increased from USD 990 million in 2019 to USD 2.6 billion in 2023. 

500 Global believes this is further supported by the return of international funds leading mega rounds and successful tech IPOs in Saudi and the UAE. However, they indicated that they identify a gap in expansion capital beyond the seed stage. As series B funding is at a 5-year low as it only accounts for 2% of deals.

500 Global believes that as regional governments continue to invest in the venture ecosystem, especially in the GCC, the MENA region is on track to achieve VC penetration levels comparable to the US.