{"id":623540,"date":"2024-06-06T00:00:00","date_gmt":"2024-06-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/06\/venture-debt-funding-for-local-startups-drop-86-in-2023\/"},"modified":"2024-06-06T00:00:00","modified_gmt":"2024-06-06T00:00:00","slug":"venture-debt-funding-for-local-startups-drop-86-in-2023","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/06\/venture-debt-funding-for-local-startups-drop-86-in-2023\/","title":{"rendered":"Venture debt funding for local startups drop 86% in 2023"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong> Homegrown startups received significantly less venture debt in 2023:<\/strong> Venture debt (VD) handed out to local startups dropped 86% y-o-y in 2023 to USD 4 mn, according to a Magnitt <a target=\"_blank\" href=\"https:\/\/magnitt.com\/research\/fy-2023-mena-venture-debt-investment-report-50936\" style=\"\" rel=\"noopener\">report<\/a>. The country witnessed two venture debt transactions during the year, a 75% drop compared to 2022.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Despite the drop, Egypt kept its ranking as the third market for venture debt in the region:<\/strong> VD activity in 2023 was concentrated in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/19162751-14f0-4c1e-9f8e-a3d9c118da70\/saudi-arabia-captured-53%2525-of-mena%253cmark%253e-venture-debt%253c%2Fmark%253e-in-2023--magnitt\" style=\"\" rel=\"noopener\">Saudi Arabia<\/a>, the UAE, and Egypt, which together accounted for 92% of MENA\u2019s venture capital funding.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Venture debt is gaining traction across the region: <\/strong>The ratio of VD financing to equity financing for startups soared to 28% in 2023 from 1.4% in 2020. MENA raked in a record USD 757 mn in venture debt last year, marking a 262% increase compared to 2022.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>SOUND SMART: <\/strong>Venture debt is a type of lending offered by banks and NBFS specifically for early-stage startups with venture capital backing. We have everything you need to know about venture debt in an <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ec45f349-7a10-476c-a0b9-2b54b894a44d\/enterprise-explains:%253cmark%253e-venture-debt%253c%2Fmark%253e\" style=\"\" rel=\"noopener\">explainer<\/a> published a couple of years back. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>FinTech startups drove the growth<\/strong>, accounting for 79% of MENA's total VD lending in 2023, up from 68% a year earlier, owed in large to Emirati buy now, pay later firm Tabby and Saudi BNPL platform Tamara, which together raked in USD 600 mn of the total USD 601 mn financing for fintech players. Transport and logistics followed with USD 150 mn, and e-commerce had a seat at the table with USD 3 mn.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The country witnessed two venture debt transactions during the year<\/p>\n","protected":false},"author":1,"featured_media":623541,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7258],"tags":[72,95,123,200,848],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-623540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup-watch","tag-enterpriseam","tag-startup-watch","tag-startups","tag-venture-capital","tag-venture-debt","wpautop","entry"],"acf":{"mongo_id":"e8505577-0c71-43d2-9fb2-63cb2ed878ab","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/6\/564.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egyptian startups raised 86% less venture debt in 2023","related_issue":[623530],"teaser":"The country witnessed two venture debt transactions during the year","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/6\/.b173397f-c306-4b3c-a1f4-1686d99a6d63.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The firm hit its fundraising target in just four weeks and Shorooq is planning to fully deploy it by the end of the year, partner Samir Yamani tells us, without disclosing the size\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/10\/290.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":544054,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/06\/enterprise-explains-venture-debt\/","url_meta":{"origin":623540,"position":1},"title":"Enterprise Explains: Venture debt","author":"enterpriseam admin","date":"6 February 2022","format":false,"excerpt":"Enterprise Explains: Venture debt. Venture capital \u2014 where investors provide funding to small businesses with long-term growth potential, in exchange for equity \u2014 has become a core component of startup financing. VC is actually a subset of private equity, although the two types of investment differ substantially. And it\u2019s booming,\u2026","rel":"","context":"In &quot;Enterprise explains&quot;","block_context":{"text":"Enterprise explains","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/enterprise-explains\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/424.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":544900,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/27\/shorooq-partners-launches-usd-150-mn-bedaya-fund-ii-to-back-startups\/","url_meta":{"origin":623540,"position":2},"title":"Shorooq Partners launches USD 150 mn Bedaya Fund II to back startups","author":"enterpriseam admin","date":"27 March 2022","format":false,"excerpt":"UAE-based VC firm Shorooq Partners has launched its USD 150 mn Bedaya Fund II to back early-stage startups operating in fintech, software, platform verticals, and digital assets in the MENAP region, according to a press release (pdf). The fund is backed by Abu Dhabi wealth fund ADQ\u2019s venture firm, DisruptAD,\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":577445,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/23\/modus-usaid-launch-local-venture-builder-to-promote-digital-inclusion\/","url_meta":{"origin":623540,"position":3},"title":"Modus, USAID launch local venture builder to promote digital inclusion","author":"enterpriseam admin","date":"23 November 2022","format":false,"excerpt":"A new venture builder on the scene: MENA-focused venture capital firm ModusCapital and our friends at USAID have launched MV Builder II, an Egyptian venture builder targeting startups working to drive digital inclusion among women and underserved populations, according to a joint statement(pdf) out yesterday.MV Builder II is sector agnostic,\u2026","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/354.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":592061,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/25\/egypt-tops-african-countries-in-vc-transactions-in-2019-says-venture-burn\/","url_meta":{"origin":623540,"position":4},"title":"Egypt tops African countries in VC transactions in 2019, says Venture Burn","author":"enterpriseam admin","date":"25 December 2019","format":false,"excerpt":"Egypt tops African countries in disclosed VC transactions in 2019: Egyptian startups received the biggest number and funding value of venture capital (VC) transactions that went to early-stage African startups in 2019, according to Venture Burn. Egypt accounted for 27% of disclosed transactions by volume and 25% by value. The\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/1210.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":685035,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/02\/08\/egypt-builds-new-funding-stack-as-mature-startups-pivot-from-equity-to-institutional-debt\/","url_meta":{"origin":623540,"position":5},"title":"Egypt builds new funding stack as mature startups pivot from equity to institutional debt","author":"enterpriseam admin","date":"8 February 2026","format":false,"excerpt":"Egypt secured over USD 595 mn in venture funding last year, ranking third on the continent with a 15% share of total funding in Africa","rel":"","context":"In &quot;Startup watch&quot;","block_context":{"text":"Startup watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/companies\/startup-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2026\/2\/466.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/623540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=623540"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/623540\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/623530"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/623541"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=623540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=623540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=623540"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=623540"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=623540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}