Tech startups weren’t as popular for investment: Emirati tech startups collected USD 638 mn in funding year-to-date (YTD), down 65% y-o-y, Zawya reports, citing the 2023 Tracxn Geo Annual Report on UAE Tech.

Decrease in early and late-stage funding: Early-stage funding declined by 66% y-o-y to reach USD 240 mn YTD. Late-stage financing had an even larger drop, plunging 80% y-o-y to USD 175 mn. The seed stage experienced little change in support, gathering USD 223 mn YTD (a less than 10% y-o-y decline).

Acquisitions were also down: A total of sixteen acquisitions were recorded this year, marking an 11% drop from the 18 acquisitions reported last year, according to the report.

Tech startups do better in Dubai? Dubai-based tech startups racked up USD 579 mn in funding, while those in Abu Dhabi managed to squeeze USD 54 mn from investors. Umm Al Quwain-based startups had less luck, collecting only USD 5 mn.

Who were the investors? In5, Hub71, and MBRIF had the most love for UAE-based tech startups.

Fintech companies outperformed their sector, with FinTech leading the race with USD 174 mn collected in funding y-t-d. Environment Tech was runner-up with USD 168 mn, followed by Blockchain Technology, which amassed USD 167 mn.

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