In 2023, there was a noticeable downturn in fundraising for African startups compared to the previous year. However, to counter this trend and foster recovery, various supportive initiatives for these businesses are currently being implemented.

Egypt venture capital firm Beltone Holding, announced a partnership agreement between its subsidiary, Beltone Venture Capital (BVC), and CI Venture Capital, a subsidiary of Abu Dhabi-based investment management company Citadel International Holdings, on Wednesday, April 17.

The collaboration aims to manage a $30 million fund dedicated to investing in promising startups in the Middle East and North Africa (MENA) region. “The Fund will typically invest in pre-seed and seed funding rounds and will continue to support the best-performing portfolio companies in follow-up rounds; in addition to potentially investing in attractive opportunities at different funding stages,” said Ali Mokhtar, CEO of Beltone Venture Capital.

The launch of the fund aligns with the shared ambitions of the two companies to support the expansion of startups and stimulate innovation in the MENA region, with a focus on high-margin sectors and exponential growth driven by technology.

The fund is expected to bolster support for young businesses in the region. In recent months, the fund has started investing in leading startups such as Bosta, Trella, Qlub, and Ariika. According to data from the specialized platform Africa the Big Deal, startups in the MENA region raised $254 million in March, bringing the total for the first quarter to $429 million.

Samira Njoya