Build Your Startup’s Foundations: Strengthening Business Fundamentals Before Scaling and Fundraising
The panel discussion at Echelon Philippines 2024, titled ‘Build Your Startup’s Foundations: Strengthening Business Fundamentals Before Scaling and Fundraising’, offered insights into the critical elements of establishing a successful startup.
Moderated by Natasha Bautista, Head of Growth Marketing and Corporate Relations at 917Ventures, the session featured industry experts Kristine Claire Ongcangco, Founder and CEO at Parlon; Mathieu Sneep, Co-Founder and Chief Business Officer at Tablevibe; Luis Sia, Chairman and Co-Founder at PayMongo; and Don Pansacola, CEO and Co-Founder at NextPay.
The speakers emphasised the importance of achieving product-market fit and adhering to lean startup principles as foundational steps for new ventures.
Ongcangco shared her experience of onboarding 20 salons and scaling to over 700 brands, highlighting the significance of organic growth and solid revenue generation before seeking external funding. Pansacola discussed the challenges of demonstrating growth during the pandemic, stressing the need for startups to pivot toward profitability. Sia addressed capital efficiency and the benefits of no-code solutions for early validation, underscoring how these tools can facilitate rapid scaling.
The panelists collectively noted that successful founders must be hands-on, deeply understand their business metrics, and even consider acquiring skills in coding or product management.
By focusing on these foundational strategies and growth techniques, the discussion provided aspiring entrepreneurs with practical guidance on how to build scalable and resilient companies in today’s competitive landscape. The emphasis on strong team dynamics and a solid business foundation will be crucial as startups navigate the complexities of the Philippine market.
Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.
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Missed Echelon Philippines this year? You can now catch the recorded sessions on demand, showcasing insights from leading startup experts, visionary entrepreneurs, and forward-thinking investors from the Philippines and Southeast Asia, all geared toward driving the next phase of growth. And stay tuned—more videos are coming soon!
The software outsourcing scene is no longer a one-horse race; it’s more like a tech rodeo! Recently, a lively debate kicked off on the “developersIndia” subreddit, asking: Who’s this rising tech star in Southeast Asia? Spoiler alert: it’s Vietnam!
The thread turned into a lively, free-for-all about the changing face of outsourcing, with participants practically salivating over the potential cost savings and the shiny new reputation of Vietnamese developers. Who better to weigh in than a Vietnamese pro working in a global outsourcing firm? I’ll do my best to keep it balanced, though I may have a slight soft spot for my fellow countrymen!
Full disclaimer: We got curious and decided to take a closer look, checking the facts against all the different things people were saying about this hot topic on a public forum. But we want to be upfront: we’re just here to explore, not to take sides. This is all about looking at the evidence and letting you make your own judgment.
Balancing the budget — Vietnam?
Yes and No. Calling developers in Vietnam cheaper than in India would greatly generalise the answer. Looking at the market medium cost for developers, we believe Vietnam is at a slightly better rate than India.
While India has long been the go-to for competitive rates, Vietnam is stepping onto the stage with a charming smile and an attractive offer. Just take a peek at the pay scale for junior Indian software developers, which ranges from a modest US$601 to US$1.5K+ per month or making US$29/hour. But beware! Hiring developers in bustling cities like Chennai, Pune, or Mumbai can feel like getting a ticket to a premium concert—prices can skyrocket!
Now, let’s turn our gaze to Vietnam. Here, average software developer salaries start at around US$25 per hour. Monthly wages for junior and mid-level developers typically range from ≥US$400 to ≥ US$1.4K+. Even in tech hotspots like Hanoi, Ho Chi Minh City, or Da Nang, you’ll find salaries (and living costs) that won’t leave your wallet gasping for air.
Specifically, Vietnam’s salary is approximately 29.82 per cent of China’s! So, why not get more bang for your buck without sacrificing quality?
Just how skilled are they?
Both Indian and Vietnamese developers are incredibly talented, so it’s a win-win for both sides! As we explore the strengths and weaknesses of these two dynamic tech communities. While each has its unique flair, one thing stands out: both markets are filled with outstanding developers recognised and respected worldwide.
India and Vietnam boast brilliant developers, but each has its own strengths and quirks. India has built a tech empire thanks to its top-notch educational institutions and booming tech scene. According to NASSCOM (National Association of Software and Service Companies), India produces over 1.5 million engineering graduates.
Out of the global population of 28.7 million developers, 19 per cent of software engineers reside in India today, all pros in Java, Python, and NET. Indian developers offer the second largest AI/ML BDA talent pool globally and stand third in the installed supply of Cloud professionals.
Meanwhile, Vietnam is also on the rise, fuelled by a government keen on boosting STEM education and the emergence of vibrant tech hotspots. As of 2024, the country boasts approximately 530,000 software engineers, with around 57,000 IT professionals graduating annually from universities and private institutions.
According to the Pentalog Report 2022, developers from Hanoi are flexing their skills as the fifth-best globally, particularly in C/C++. This ranking puts them shoulder-to-shoulder with Moldova, Germany, and Ukraine.
These Vietnamese developers are also catching up with the latest tech trends, diving into mobile app development, cloud computing, and artificial intelligence like pros. They’re quick learners, too, mastering new programming languages and frameworks faster than you can say “outsourcing.”
Putting English to the test — Indians?
English has emerged as a vital player in the race to identify the world’s next global talent pool. India and Vietnam are stepping up to the challenge, revamping their education systems and inspiring citizens to sharpen their English-speaking skills. Yet, despite these efforts, the competition remains neck and neck. It would be a stretch to say that Vietnamese speakers have a clear advantage over their Indian peers in mastering English. So, what’s really going on in this fascinating showdown?
In India, English feels more like that cool foreign cousin you admire rather than the family member you grew up with. On average, Indian English speakers enjoy moderate fluency, which places India at an impressive #60 on the 2023 English Proficiency Index, with a score of about 504 out of 800. Not too shabby, right? Yet, there’s still plenty of room for growth and refinement in their language skills!
And here’s a fun fact: around 135 million people in India can speak English, making up about 9.71 per cent of the population. The language landscape is vibrant and full of potential!
Over in Vietnam, the developer scene is buzzing with a mix of English proficiency levels. According to the same 2023 English Proficiency Index, Vietnam lands a little on top of India, at #58, with a 505 out of 800 score. Way to go! However, according to the Vietnam Total Workforce Index 2022, the proportion of Vietnamese workers proficient in English accounts for only five per cent of the total workforce.
Developers who go all the way
Both cultures bring their unique flavor to the outsourcing table, making the experience quite an adventure! A Reddit thread recently poked fun at the “chalta hai” attitude often associated with Indian developers, raising eyebrows about deadlines and project management. While it’s not a universal truth, it underscores the need for a little cultural TLC in outsourcing.
Flashback to a Quora chat from four years ago, where the praises for Vietnamese work ethics still echo today! Vietnamese developers are like the superheroes of the coding world—committed to quality, eager to please, and with an eye for detail that would make a watchmaker jealous. In my experience, they consistently go above and beyond, turning client satisfaction into art. It’s no wonder many clients are looking for these dedicated partners who make high-quality work their mission!
Facts or “cap”?
So, have the questions been answered?
Well, sort of! Both countries are like treasure troves of top-notch software developers known for their dazzling skills and innovative flair.
But hold your horses. Choosing the right country comes with a price: choosing the right local partner. A reliable collaborator can be your compass, guiding you through the local market’s twists and turns while helping you dodge potential landmines. Without a trusty sidekick to manage the chaos, figuring out the best country for your outsourcing adventure can turn into a wild goose chase.
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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.
In 2018, Dan Williams, a PhD from the University of Reading, and Josh Eadie, a robotics and machine learning expert, recognised a ubiquitous but overlooked problem: energy waste from electronic devices left plugged in or on standby.
The duo saw substantial environmental and financial costs of this unnecessary power draw, particularly in commercial settings.
Driven to make a difference, they harnessed their expertise and developed an innovative solution: an AI-powered smart socket to reduce energy consumption at the source.
In early 2018, Eadie built the first prototype, embedding intelligent controls directly into plug sockets. By early 2019, they had produced the initial batch of prototypes, followed by pilot installations in April 2020.
That was the beginning of measurable.energy, their UK-headquartered company, which is now helping businesses reduce energy waste and cut costs.
“While typically overlooked in favour of larger systems such as HVAC, plug power makes up nearly 40 per cent of a commercial building’s total energy use,” says Williams, co-founder and CEO of measurable.energy. “Our smart sockets work autonomously to detect and eliminate this power drain, allowing businesses to cut electricity bills and reduce carbon emissions by up to 50 per cent.”
AI-driven insights for better energy management
The AI-driven technology within measurable.energy’s smart sockets plays a key role in identifying and adapting to usage patterns. The system learns from each device’s behaviour, detecting when devices are likely in use or idle and automatically switching them on or off accordingly.
Users can access real-time data via a dedicated dashboard, enabling them to monitor, manage, and optimise energy consumption at a granular level. This detailed feedback helps businesses improve carbon tracking accuracy and ensure compliance with energy regulations.
“Since the product launch in 2023, we have helped reduce nearly 200 tonnes of CO₂ equivalent in commercial deployments,” claims Williams. “In commercial buildings, which account for 28 per cent of global carbon emissions, measurable.energy targets plug power waste, thereby supporting companies in achieving their net-zero ambitions.”
Currently, measurable.energy’s smart sockets are available for businesses through a pricing model that combines a one-time hardware fee with a software license for AI-driven functionality.
Measurable Energy offers smart sockets for businesses. Their pricing model consists of a one-time hardware fee and a software license fee for AI-driven functionality.
While expansion into the residential sector is planned for the future, the company remains focused on B2B clients for now.
With widespread adoption, the startup envisions cumulative positive impacts across both commercial and residential sectors, advancing sustainable energy practices on a large scale.
measurable.energy recently raised £4 million (US$5.2 million) in a Series A+ funding round co-led by Vertex Exploratory Fund, a fund under Vertex Holdings (a wholly-owned subsidiary of Temasek), and UK-based cleantech VC firm Clean Growth Fund. This capital injection will support R&D efforts, allowing the company to expand manufacturing capabilities and add new features to its smart sockets, with a particular focus on expansion in Southeast Asia, North America, and Europe.
Expansion in Southeast Asia
The measurable.energy founding team
“One of the most promising aspects of our expansion strategy lies in Southeast Asia,” Williams adds. “We see considerable potential in markets like Singapore, Australia, and New Zealand, where the UK-standard socket is widely used. This compatibility, coupled with the region’s push toward energy efficiency and reduced carbon emissions, has created a favorable environment for measurable.energy’s technology.”
The venture plans to partner with local businesses and experts in Southeast Asia to streamline entry, leveraging their insights to ensure smooth adoption and local relevance.
Looking ahead, measurable.energy plans to launch a version of its smart socket compatible with US outlets, making strides toward the North American market.
Additionally, the startup is developing a desk extension module to provide users with more flexibility and connectivity, allowing the technology to integrate even further into daily operations.
The team is gearing up for a Series B funding round in 2025, setting ambitious milestones to enter new international markets, boost unit sales, and scale its R&D workforce.
As measurable.energy continues to expand and innovate, its impact on reducing energy waste and promoting sustainable practices could shape the future of energy management on a global scale.
81RAVENS, the Singaporean company behind the free-to-play 3v3 arena shooter PARAVOX, has raised US$4.5 million in seed funding led by Japanese investors DIGITAL HEARTS HOLDINGS and GREE Ventures.
The funding will support the development and marketing of PARAVOX, which will launch on the Solana blockchain.
81RAVENS was founded in 2020 by a team of experienced game developers, publishers, and league organisers in Japan and Southeast Asia. Its inaugural title, PARAVOX, features a unique blend of movement, skill mastery, and tactical precision.
PARAVOX is currently in Global Open Alpha and claims to have clocked over 100,000 downloads on the Epic Games Store following its Private Alpha launch in Japan and Southeast Asia.
81RAVENS has chosen to deploy on the Solana blockchain. With its fast, scalable infrastructure and extremely low transaction costs, Solana enables real-time gameplay and smooth on-chain integrations, perfect for enhancing the player experience.
This year, PARAVOX hosted the PARAVOX Global Rapid Tournament (PGRT), its first major esports event, which featured a prize pool of 100 million yen and attracted over half a million viewers, with 23 esports teams participating.
81RAVENS claims that world-class professional teams from Japan, Southeast Asia, Europe, and Latin America, such as LOUD, ZETA DIVISON, and Blacklist International have already partnered with PARAVOX.
Cross-border payments have always been tricky territory. Traditional banking methods come with a higher cost, lengthy delays and security concerns. It can hinder growth for businesses with global suppliers and customers. This will only become more apparent in the coming years as globalisation continues to speed up.
Crypto, for all its achievements and what it hopes to be, has created a new type of “border” related issue. Indeed, value is now locked within networks — call it cross-chain borders. The lack of a unified on-chain experience is preventing the adoption of crypto payments. Unified doesn’t equal centralised – an important distinction to make.
The current crypto landscape is fragmented, with a steep learning curve for the everyday user. The many independent blockchains, and the need for token-specific payments, creates added complexities to on-chain transactions.
Achieving cross-chain interoperability doesn’t just elevate the global crypto industry – there are localised benefits for regions who embrace it.
But big banks banding together isn’t the answer. Interoperable blockchains are. Blockchain technology will have its mainstream moment when different chains communicate seamlessly, so users can pay anyone, anytime, anywhere.
And this technology already exists.
Solving financial fragmentation
Unified cross-chain payment platforms for crypto and fiat currencies exist, which removes the need for banks, multiple wallets, bridging or seed phrases. It’s underpinned by an omni-chain ID, a universal payment ID aggregating wallets, accounts, and DIDs – like a new swift code.
Programmable payments and one-click cross-chain transactions simplify the user experience and makes financial transactions across borders effortless. With smoother cross-chain asset movement – regardless of currency, token, wallet, app or blockchain – the increase in value flow will lead to more liquidity and innovation.
Users can bypass centralised exchanges for trading between different cryptocurrencies – further reducing the reliance on custodial platforms, fees, risks of exchange hacks, and the need to entrust third parties with private keys.
This means an individual can use Bitcoin to participate in lending or staking on Ethereum-based DeFi protocols, through interoperability solutions such as wrapped tokens or cross-chain bridges.
Being less dogmatic about our decentralised chain of choice (Bitcoin maxis vs Ethereum evangelists) will promote participation in different ecosystems and open up the space to people who are intimidated by crypto culture. A unified on-chain payments experience is the future. No single blockchain should dominate.
Omni-chain infrastructure has the potential to extend far beyond purely financial transactions. It can revolutionise other industries that require cross-border payments such as supply chain management, healthcare, and entertainment.
Companies can manage supply chains with greater efficiency by ensuring payments and data move seamlessly between multiple blockchains, improving operational efficiency. With the world’s reliance on Asia for consumer goods, the region is well-positioned to adopt blockchain technologies.
With Southeast Asia being a key region for web3 gaming, the growing number of developers also stand to benefit from cross-chain interoperability. When blockchains can communicate seamlessly, it opens up new possibilities for applications to interact with multiple chains – without needing to manage the complexities of bridging between them.
For example, developers can deploy decentralised finance applications that tap into liquidity across several blockchains, rather than being constrained to one ecosystem. This flexibility fosters a more dynamic and interconnected on-chain environment, where developers can experiment and iterate faster, driving the next wave of blockchain-based innovations.
The easier it is to build, the faster it’ll be to onboard new users into web3 – without users having to worry about what chain they’re on.
The key to connecting people across borders and blockchains
Interoperability is the missing component that will unlock crypto’s true potential, well beyond the industry itself. The decentralisation movement started with DeFi, but it failed to solve the fundamental flaws of cross-border transactions – with disparate blockchains recreating and repacking the silos of the past.
By leveraging technologies that enable cross-chain interoperability, we can move away from centralised intermediaries, which was crypto’s original intention.
It’s time to redefine crypto payment solutions and open web3 up to the world.
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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.
The State of Play: Emerging Trends and Future Prospects in the Philippine Market
Echelon Philippines 2024 gathered key players in Southeast Asia’s tech ecosystem, uniting startup leaders, entrepreneurs, and investors to support the region’s dynamic tech market and economic development.
The event’s keynote, ‘The State of Play: Emerging Trends and Future Prospects in the Philippine Market’, was delivered by Carlo Chen-Delantar, Founding Partner at Gobi-Core Philippine Fund (Gobi Partners).
In his address, Delantar explored the current state of the Philippine market, identifying both the drivers of its rapid growth and the challenges that lie ahead. As one of Southeast Asia’s fastest-growing economies, the Philippines boasts a startup ecosystem valued at nearly US$7 billion, supported by over US$300 million in early-stage funding and median seed rounds around US$800k.
However, the ecosystem faces hurdles, such as high logistics costs and the need for stronger government support.
Delantar noted emerging sectors like health tech, agritech, and AI as areas with high growth potential. The Philippines has a robust consumer base for AI applications, positioning it as a promising market for innovation. He underscored the importance of policy changes, including startup visas and tax incentives, to sustain and accelerate growth. The conference underscored the Philippines’ pivotal role in the regional tech landscape, with a call for enhanced infrastructure and policy support to realise its full potential.
Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.
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Missed Echelon Philippines this year? You can now catch the recorded sessions on demand, showcasing insights from leading startup experts, visionary entrepreneurs, and forward-thinking investors from the Philippines and Southeast Asia, all geared toward driving the next phase of growth. And stay tuned—more videos are coming soon!
Singapore’s decision to inject US$332 million into deeptech startups through the Startup SG Equity scheme is a bold, forward-looking move that demonstrates its commitment to nurturing high-tech innovation.
Deeptech ventures—known for their groundbreaking research in areas like AI, quantum computing, and biotech—often face significant funding challenges due to high upfront costs and extended timeframes to profitability.
By expanding the scheme to cover early-growth-stage companies and raising government investment caps, Singapore is strategically addressing these hurdles, creating a more supportive landscape for startups to thrive.
The additional initiatives announced at SWITCH 2024 underscore Singapore’s ambition to be a global innovation hub. New programs like StageOne will help local and international startups leverage Singapore as a launchpad, while the expanded Global Innovation Alliance (GIA) network, particularly with new nodes in Amsterdam and Eindhoven, opens the door to the European market for Singaporean tech firms.
Furthermore, the government’s focus on open innovation challenges, especially in AI and sustainability, highlights its drive to tackle pressing global issues through tech.
These moves not only solidify Singapore’s status as an attractive destination for venture capital but also as a key player in global deeptech ecosystems poised for transformative impact.
Sainul,
Editor.
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NEWS & VIEWS
Singapore to inject US$332M into deeptech startup scheme
This comes amid a “slight decline” year on year in the total VC raised by Singapore-based startups so far this year – the figure stood at US$4B across close to 370 deals.
Vingroup’s new venture arm to invest US$50M in SEA tech firms
Named VinVentures, the fund is set to disburse US$50 million in the next three to five years, focusing on investments in early-stage companies in sectors such as AI, semiconductors, and cloud computing.
Khazanah launches national fund-of-funds to boost VC ecosystem
Khazanah Managing Director Amirul Feisal Wan Zahir said that through this catalytic initiative, Jelawang Capital will continue to grow Malaysian fund managers while crowding in regional fund managers with expertise and capital.
Supermom lands US$14M funding to connect brands with 10M+ parents across SEA
Granite Asia, AC Ventures, and Hearst Ventures are the investors; Supermom is an AI consumer data platform that uses the power of the mom community to provide learning opportunities and recommendations on products and services.
KXVC introduces KX Horizon to boost AI, Web3, deeptech innovations in SEA
KX Horizon will provide an expert mentorship network, strategic consultation, and access to funding sources for participating startups; This initiative seeks to attract visionary founders, investors, and partners to collaborate within the programme.
Vietnam EV maker VinFast officially launches in the Middle East
VinFast, together with its partner Al Tayer Motors, officially opened its first dealership in the UAE, located in the downtown area of Dubai; The VF 8 model will be sold in the Middle Eastern market.
Indian fintech Slice seals bank merger
The merger transforms the Bengaluru-based startup into a banking entity; Slice, which gained prominence by issuing credit card-like products, will maintain its existing digital payment and lending services.
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Indonesia-based lending infrastructure firm Finfra has received US$2.5 million in a funding round led by Cento Ventures.
Accion Venture Lab, Z Venture Capital, Matiss Ansviesulis (founder of Avafin), and existing investors also participated.
The company will use the new funds to expand onboarding capabilities for customers and target profitability. Additionally, Finfra plans to enhance its data analytics, scoring, and risk assessment products.
Additionally, the fintech firm has announced a partnership with Tyme Group, the multi-country digital banking group behind TymeBank in South Africa and GoTyme Bank in the Philippines. It aims to support Tyme’s expansion into Indonesia as part of its broader Southeast Asia growth strategy following its launches in the Philippines and Vietnam. Tyme can leverage Finfra’s platform to scale its embedded lending solutions, such as merchant cash advances.
“Southeast Asia is a central part of Tyme Group’s growth strategy, and Indonesia has long been a goal for our Group. Partnering with Finfra allows us to tap into Indonesia’s immense SME segment by leveraging its robust embedded lending infrastructure and network within digital platforms. This collaboration not only accelerates our mission of driving financial access but also enables us to offer innovative lending solutions to a broader audience of businesses and consumers in the region at an unprecedented speed,” Coen Jonker, Executive Chairman at Tyme Group, said.
Founded in 2022, Finfra allows non-financial platforms to integrate lending and unlock new revenue streams easily. Its comprehensive, API-driven infrastructure offers a full loan management system, scoring, portfolio analytics, and access to debt capital while ensuring regulatory compliance through its licensed affiliate.
The company has raised US$4.3 million in funding so far, including US$1 million from DSX Ventures, Seedstars, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund in June 2023.
. Since its last raise, Finfra claims to have doubled its client base and expects to more than double its quarterly gross profit in Q4 2024 compared to Q4 2023. The firm claims it recently facilitated over US$65 million in credit to underserved Indonesian businesses and business owners.
Indonesia, the largest economy in Southeast Asia, boasts a vibrant SME sector that is rapidly digitalising. By the end of the year, 24 million micro, small, and medium-sized enterprises (MSMEs) are expected to be online or using digital services out of the country’s total 64 million. The government aims to accelerate this transformation, targeting 30 million digitalised businesses by 2025.
DCAP Holdings, a Malaysian fintech company focused on promoting financial inclusion, has bagged an undisclosed strategic investment led by Gobi Partners.
The capital will help DCAP accelerate its mission to provide equitable financial solutions to marginalised communities across Malaysia.
Founded in 2020 by Sonia Ng and Wilson Kok, DCAP leverages AI, machine learning (ML), data analytics, and automation to address the financial challenges of underserved and unserved consumers. Its go-to-market lending-as-a-service (LaaS) model allows traditional financiers to embrace digital transformation to streamline processes, enhance customer reach, and offer more accessible services for the underbanked.
Its AI/ML-powered Credit Scoring Model and Mobility Hire Purchase Lending solutions offer tailored and affordable financing options by seamlessly connecting financiers with borrowers through its proprietary tech-driven platform.
The company’s data-centric approach allows for fairer lending terms, designed for lower-income individuals, who currently account for 92 per cent of its customer base.
The startup partners with banks, credit companies, motorcycle dealers, and cooperatives. Since 2022, the company has provided green vehicle financing for electric two-wheelers (E2Ws).
Gobi’s investment is driven by DCAP’s potential to disrupt predatory lending by providing innovative financial solutions that empower vulnerable consumers. Using its proprietary risk framework, DCAP offers transparent loan options for lower-income groups. Its advanced credit scoring models enable accurate risk assessments, driving the digital transformation of traditional motorcycle retailers while helping borrowers access fairer financing.
As we approach the final quarter of 2024, the global venture capital landscape is undeniably in flux. Funding has tightened, and Emerging Venture Markets (EVMs) are also feeling the pressure.
Our latest quarterly update shows that the first nine months of this year saw a significant 45% year-on-year decline in total investments across markets in Southeast Asia, Africa, the Middle East, Turkey, and Pakistan. It’s a tough environment to navigate, and yet, not every market is feeling the pinch in the same way.
The standout story so far has been seen within the markets of the Middle East and North Africa (MENA). Despite global headwinds, MENA has managed to buck the broader trend, with just a 13 per cent decline in funding—far from the steeper contractions seen elsewhere. This resilience is no accident; it reflects the region’s increasing maturity, its appeal to international investors, and the strategic role it plays in the broader global investment narrative.
At MAGNiTT, we’ve been closely tracking these developments, and what we’re seeing in MENA is remarkable. The region’s startups raised US$1.3 billion in the first nine months of 2024, and although the number of deals dropped slightly, MENA has proven itself capable of weathering the storm.
In fact, Q2 and Q3 of this year both outperformed the same periods in 2023. This speaks volumes about the growing confidence investors have in the potential of this region.
The driving force behind this performance is clear: international interest in MENA has surged. In the first nine months of 2024, we’ve seen a 34 per cent increase in the number of investors, with a staggering 69 per cent rise in international participants. Events like Expand North Star and the Future Investment Initiative Forum are only amplifying this trend, bringing global investors into direct contact with the opportunities this region has to offer. With Q4 typically being the strongest quarter for VC activity in MENA, we’re optimistic about what’s to come.
Countries like the UAE, Saudi Arabia, and Egypt are leading the charge. The UAE saw a 12 per cent rise in the number of closed deals, capturing nearly 40 per cent of all MENA transactions. It’s no surprise—this is a hub where early-stage rounds are thriving, particularly in seed and pre-Series A deals, which grew by 40 per cent year-on-year.
Saudi Arabia isn’t far behind, with deals counting up to seven per cent, driven by a 46 per cent rise in seed deals from innovative startups like Moyasar and SiFi. Even Egypt, while experiencing some headwinds at the pre-seed level, posted impressive growth in seed and Series A deals, signalling a shift toward more mature startups.
Of course, the picture isn’t universally bright. Africa and Southeast Asia have faced significant challenges this year. Africa’s startups raised US$839 million, a sharp 38 per cent YoY drop, while Southeast Asia saw the largest contraction of all EVMs, with a 51 per cent YoY decline in funding. These markets are currently recalibrating, particularly as mega deals are becoming fewer and the ecosystem shifts.
Looking ahead, we believe Q4 2024 will be critical—not just for MENA but for the global venture ecosystem. With global trends suggesting lower interest rates and an uptick in investment activity, the real question is: can we expect a rebound in Q1 of 2025?
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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.
