Egypt led startup activity in the continent: Egypt outpaced other African nations in terms of startup funding and rounds closed during the first nine months of 2024, according to Magnitt’s latest Venture Investment Summary (pdf).

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The figures: Egyptian startups raised a combined USD 304 mn between January and September — MNT-Halan closed Egypt, Africa, and MENA’s largest round during the period with its USD 157.5 mn round announced in July. Local startups closed 56 funding rounds during the first nine months of the year, the most of any African nation and capturing 28% of the region’s transaction count.

Driving the growth: We saw a 45% y-o-y seed and series A transactions during 9M 2024. However, pre-seed funding was down 17% y-o-y “signaling a shift toward more

mature startups,” Magnitt said in the press release (pdf) that accompanied the report.

Bucking the trend: Emerging venture markets witnessed a 45% y-o-y dip in funding, raising USD 4.9 bn in the first nine months of 2024. Southeast Asia and Africa reported the sharpest drops, while the MENA region showed resilience, with only a 13% decrease.

A glance at the region: The UAE led the region in volume of transactions with 134, capturing 38% of all MENA transactions during the nine-month period, while KSA dominated total transaction value, with Saudi startups raising some USD 509 mn.

Could 2024 end on a high note? “With global trends pointing towards lower interest rates and an uptick in investment activity, Q4 2024 will be a crucial period. All eyes are on whether we can exceed last year’s performance,” said Magnitt CEO Philip Bahoshy.

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