VC Tide Turns: MEAPT Raises $8.51B but Fewer Deals in H1 2025

$8.51B Raised in H1: MEAPT VC Surges, but Deal Count Slides

The Middle East & Africa VC Trends in H1 2025 reveal a compelling dichotomy: while capital inflows hit US $8.51 billion—a 51.5% increase year-over-year—deal activity continues to decline. Only 330 funding rounds were recorded across the region, down from 423 in H1 2024 and 585 the year before. The takeaway? VC appetite is shifting toward fewer, larger bets, and confidence remains concentrated in late-stage growth.

VC Concentration Deepens: 4 Mega-Rounds Dominate June

June alone produced four deals exceeding US $100 million, now ranked among the year’s top ten. These include:

• Cato Networks (Israel): US $359M Series G & debt
• Wave Mobile Money (Senegal): US $137M debt round
• ForSight Robotics (Israel): US $125M Series B
• Coralogix (Israel): US $115M Series E & debt

This cluster of mega-rounds reflects a growing investor preference for scale and predictability. The result? A top-heavy VC environment where earlier-stage startups struggle for visibility.

Sector Spotlight: FinTech, AI, and Cloud Stay Hot

FinTech leads MEAPT’s sectoral performance, buoyed by non-dilutive debt financing. High-demand cases include Wave, Ollin Finance (Egypt), and PetroApp (KSA)—each securing major rounds to expand consumer services, fleet management, or financial inclusion.

AI and Cloud computing remain magnets for enterprise capital. Cato Networks, Coralogix, and Speedata (Israel) exemplify the region’s push toward scalable, secure, and AI-optimized infrastructure.

Geographic Shifts: West Africa Reemerges, Israel Holds Court

Israel remains MEAPT’s innovation powerhouse, accounting for five of the top ten funding rounds. However, Wave Mobile Money's US $137M round signals renewed investor enthusiasm for West Africa, particularly in inclusive FinTech models that blend affordability with reach.

Meanwhile, BURN (Kenya) raised US $80M to scale its clean cooking tech across Africa—proof that climate-aligned hardware can compete alongside SaaS and analytics.

Macroeconomic Tension: Liquidity Squeeze Spurs Selectivity

Global interest rates remain high, and the U.S. dollar's continued strength is tightening liquidity for frontier markets. According to the IMF’s April 2025 report, these conditions are pushing investors to concentrate capital in revenue-generating ventures. The fall in deal count is no accident—it reflects active de-risking in an uncertain macro backdrop.

Outlook: Can Early-Stage Bounce Back?

The second half of 2025 hinges on two key questions:

• Will IPOs on platforms like Tadawul or Borsa Istanbul restore confidence?
• Can macro conditions ease enough to revive seed and Series A activity?

Until then, Middle East & Africa VC Trends will continue to favor scaled operators with strong fundamentals. It’s survival of the bold—and the well-capitalized.