GCC Startup VC Funding March 2025: Record $1.35B Surge Amid Shrinking Deal Count

Over the past three years, Gulf startups have navigated booms and busts but Q1 2025’s surge is remarkable in scale yet narrow in scope. As of end of March  2025, cumulative YTD funding in the GCC reached US $1.35 billion, a 67.2% jump on US $807 million at the same point last year, boosted by major deals like GCC startup VC funding March 2025. Yet deal volume tells a counter‑narrative: only 82 rounds closed, down 46.8% from 154 in Q1 2024, underscoring a pivot toward fewer, capital‑intensive financings.

GCC Startup VC Funding March 2025: Deals Dynamics 

The gulf between funding value and deal count has never been starker. While ticket sizes swelled—lifting total capital to new highs—founders in the seed and early‑growth brackets face a pronounced capital drought. Average cheque size climbed from US $5.2 million in Q1 2024 to US $ 16.5 million in Q1 2025. The disappearance of “mega‑round” (>US $100 million) droughts from 2024 has been replaced by a scarcity of small and mid‑stage checks. 

Emerging‑market outflows, driven by Fed tightening and a strong dollar, have curbed Limited Partners (LPs) commitments to regional VC funds. Coupled with oil‑price volatility and Red Sea shipping risks, investors are excising optionality—backing proven models over experimental bets. 

UAE Takes The Lead in VC Funding 

The UAE claimed all five of March’s top rounds, sidelining Saudi Arabia this month. FinTech remains the region’s powerhouse, responsible for four of the five largest YTD financings and three of March’s top deals, reflecting Gulf governments’ push to modernize beyond oil revenues.

March 2025 Top Funded Startups in GCC

• UAE-based OSN+ led the pack with a US $57 million corporate round in the media and entertainment space, tapping into demand for next-gen digital content.
• NymCard, a fintech firm offering gamified debit cards, raised US $33 million in Series B funding, followed by
• Klaim, which pulled in US $26 million through a mix of debt and equity to expand its health-focused financing platform. 
• Premium coffee roaster and services ROR Coffee Solutions landed US $8 million and plans to expand its business, while 
• ClearGrid, a seed-stage startup applying AI to SME credit infrastructure, rounded out the list with US $6.5 million.

When it comes to sector, fintech continues to dominate, thanks to rising financial inclusion initiatives, digital transformation across government services, and strong demand for SME financing tools. Whether it’s smarter payments, AI-driven credit, or immersive media, GCC startup VC funding March 2025 is spotlighting bold, data-driven bets with the potential to scale beyond the region.

What Will The Region See? 

With fewer but heftier rounds on the table—including the landmark GCC startup VC funding March 2025 deals—the GCC ecosystem must ask: will fund managers recycle gains into nascent startups once liquidity normalizes, or will capital coalesce around a shrinking cohort of scale‑ups? Q2 2025’s pipeline announcements will offer the clearest signal.