GCC Startup Funding Cools in April 2025 After 2024 Surge

The Gulf Cooperation Council (GCC) has entered a period of sharp recalibration in its venture capital landscape as we move into Q2 2025. Following a record-breaking surge in 2024, the region’s startup ecosystem is now contending with a sobering cooldown. As of April 2025, year-to-date (YTD) venture deal value has dropped to US $1.45 billion, marking a steep 38.6% decline from US $2.36 billion in April 2024. Meanwhile, deal count has nearly halved, falling 45.5% from 178 deals in 2024 to just 97 this year, despite a relatively stable year-over-year performance between 2023 and 2024 (+1.7%).

The current decline in VC activity is underscored by the absence of any mega-rounds (deals exceeding US $100 million) in April 2025. UAE-based startups once again led the region's funding charts—just as they did the last 2 Aprils. However, this month’s biggest round, HRA Experience’s US $39.6 million raise, and April 2023’s top contender, Ryse Energy with US $15 million, are dwarfed by the US $1.5 billion raised by G42 in April 2024. That single deal significantly inflated last year’s YTD funding total and distorted year-over-year comparisons.

Excluding the outlier by G42, April 2024’s adjusted YTD total falls to just US $859 million, and April 2025’s US $1.45 billion actually presents a significant increase. Meanwhile, average deal size continues to climb in a thinning market, rising from US $4.4 million in April 2023 to US $13.3 million in 2024, and reaching US $15 million by April 2025. However, none of the top five YTD deals in 2025 thus far occurred in April. Regionally, the UAE emerged as the GCC’s most active geography in April, accounting for four of the top five deals, albeit at smaller sizes.