After four consecutive years of growth in venture capital funding, the start-up sector saw a 175% y-o-y increase in fundraising in 2021, reaching a new all-time high of $491m.
Approaching the $500m mark is a huge milestone, especially because it coincides with unprecedented investor participation, with investors supporting start-ups in Egypt nearly doubling between 2020 and 2021.
E-commerce and fintech were the most active industries in terms of the number of deals closed during 2021.
However, marking a watershed moment in the ecosystem, Egypt recorded its first mega deal worth over $100m so far, which put transportation and logistics first in terms of total financing, after Halan secured a massive $120m financing deal.
According to a report by MAGNiTT — a platform that collects data on start-ups and venture investments across emerging venture markets — Egypt ranked second in the Middle East and North Africa region in terms of the number of financing deals and first place in Africa.
A new record of seven exits was also announced in Egypt in 2021, with acquirers from the US, Saudi Arabia, and Oman.