The Middle East has the world’s largest technology fund Vision, which has not yet invested in its region. About 60% of the capital worth $ 100 billion goes to the Vision Fund from Saudi Arabia and the UAE. He has provided financial support to several start-ups around the world, but no other company in the Middle East or North Africa has been in their field of vision.
Experts say that this is due to the fact that the region lacks the early financing necessary for the growth of start-ups to a size that will attract large investors for business. From the Persian Gulf region, only two unicorns emerged: Careem, a road application, and Souq, an e-commerce platform that was purchased by Amazon earlier this year. Walid Mansour, chief investment officer of Middle East Venture Partners (MEVP), says that start-ups in the region are too small to attract big money.
The Vision Fund invests a minimum of $ 100 million at a time. He declined to comment on specific industries or regions, but said his "strategy is to provide long-term venture capital investment in the global technology sector with large-scale growth opportunities."
To achieve this goal, a thriving launching environment is required, and in the Middle East there is a problem.
Venture investment in the Middle East amounted to only $ 400 million in 2016, according to a report released in June by the MENA Private Equity Association. In comparison with the United States and Europe, where $ 58.6 billion and $ 16 billion were invested, this amount is not surprising.
Venture funds and experts working there know a lot about where to find the best projects for investing. They take care that the investor lives his life peacefully, while the project works for him. Investing in projects that are under the wing of a venture fund, the investor does not take any risks. Hypercube Ventures takes care of the investors, allowing them to choose the most attractive projects available on the market. This makes it possible in a year or two to get an excellent profit without straining.
Most recently, we talked about the amount that the USA government invests in foreign venture funds.