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Wed 2 Oct 2019 01:57 PM

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Middle East tech start-ups confident of creating $100m firms, says report

Latest report reveals 81% are more focused on growth over profitability

Middle East tech start-ups confident of creating $100m firms, says report
The MAGNiTT survey featured over 100 high-growth tech start-up founders based in the MENA region that have received at least one round of investment from 500 Start-ups.

Well over half of tech start-up founders in the MENA region are expected to exit in five years, according to the latest ‘State of MENA Start-ups 2019’ report from MAGNiTT and 500 Start-ups.

And from that, 59 percent of those surveyed said they were “certain” that they will be creating a company of $100 million in exit value.

The MAGNiTT survey featured over 100 high-growth tech start-up founders based in the MENA region that have received at least one round of investment from 500 Start-ups.

It also revealed that 86 percent had recently raised a pre-seed or seed round, taking an average of seven months to close the first round. And 7 percent of the 500 Falcons’ portfolio highlighted that it will be “moderately challenging to raise funds”, while 67 percent said they had to approach up to 10 investors to raise their most recent funding.

Some 62 percent of founders said hiring the right talent was one of the major challenges, although 71 percent expect to hire up to 10 new employees as they expand operations.

In terms of expansion, 81 percent admitted they were focused on growth over profitability.

Philip Bahoshy, founder of MAGNiTT, said: “This report really digs into the startup founder’s journey and the challenges they are facing.”