Startups from the Middle East, Pakistan, and Turkey received almost $5 billion in funding in the first quarter

Following a record-breaking 2021, startups in the Middle East, Africa, Pakistan, and Turkey continued to draw large sums of cash in the first half of this year, according to the most recent study.

However, market momentum has begun to show the first signs of a slowdown due to global economic obstacles such as market swings, as well as rising borrowing and operational costs.

Ventures in the Middle East, Africa, Pakistan and Turkey have raised more than $5 billion in funding from January through June, MAGNiTT, a startup data provider for emerging venture markets, said in its “H1 2022 Emerging Venture Markets Report.”

With over half the number of total transactions, this year’s funding has already gathered more than 65 percent of 2021’s record funding, mostly driven by mega deals, which refer to individual investment rounds of more than $100 million.

In 2021, the MENAPT VC ecosystem had raised less than $7 billion in capital.

The pace set last year has continued into this year, making January-March a record quarter. According to MAGNiTT, nine megadeals were closed this year, representing for 40% of total capital deployed in the first half.

Nigeria’s Flutterwave, Turkey’s Getir, and the United Arab Emirates’ Pure Harvest Smart Farms closed the deals.

According to MAGNiTT, agreements worth more than $100 million, as well as the prevalence of larger-sized rounds, drove the ecosystem across emerging venture markets (EVM) to aggregate 70% of the 2021 fiscal year record funding.

According to the report, all four EVMs, namely MENA, Africa, Pakistan, and Turkey, showed year-over-year contract growth in the first half of 2021.

Startups in Turkey raised more than $1 billion in the first half of the year, almost entirely through mega deals that accounted for about 80% of total funds raised.