Leading international venture capital firm 500 Global today announced the opening of 500 MENA, L.P. (the “Fund”), a new fund devoted to funding high-growth technology startups in the Middle East and North Africa (MENA) region, both from within and outside of the 500 Global portfolio of existing funds. This strategic move aims to further catalyze the growth of the MENA region’s emerging tech ecosystem and positions 500 Global to support startups beyond the seed stage.
The Fund will fill a crucial funding gap for MENA founders, especially during the expansion stage, by focusing on startups with strong growth potential and demonstrated product-market fit. By providing them with a comprehensive platform and an extensive international network, 500 Global seeks to actively assist these businesses in developing and scaling creative solutions both locally and internationally.
The fund will be run by Amjad Ahmad, managing partner of 500 Global MENA and advisor to emerging markets. Having led venture and growth investments totalling more than $1 billion in the MENA region in industries ranging from consumer goods and financial services to technology and education, Amjad is an experienced investor with more than 20 years of experience in emerging markets. Courtney Powell, the managing partner and chief operating officer of 500 Global, who has been based in Riyadh since 2021, will assist him on the investment committee.
“Amjad is a seasoned investor with a proven track record of helping founders scale their startups,” said Courtney Powell. “His leadership will be instrumental in driving the success of our fund and portfolio companies.”
“We are thrilled to fuel the next wave of tech champions in the MENA region, driving innovation and economic growth as digital transformation accelerates across key economies,” said Amjad Ahmad. “Our partnership with talented founders aims to empower them to innovate, build, and scale.” The Fund is backed by prominent Saudi institutional investors, Jada Fund of Funds, a Public Investment Fund (PIF) company, and Saudi Venture Capital (SVC). It is also supported by Sanabil Investments alongside their ongoing strategic partnership with 500 Global.
In recent years, there has been a notable increase in startup activity in the MENA region. From $990 million in 2019 to over $2.6 billion in 2023, startup funding has skyrocketed. The return of foreign funds that led mega-rounds and successful tech IPOs in Saudi Arabia and the United Arab Emirates, in our opinion, further supports the growth. Nonetheless, we observe that obtaining expansion capital beyond the seed stage continues to be difficult, as only 2% of deals receive Series B funding, which is at a 5-year low. We believe the MENA region is on track to reach venture capital penetration levels comparable to strong economies like the U.S. as long as regional governments keep funding the venture ecosystem, particularly in the GCC.
Since launching its capital deployment in the region in 2012, 500 Global has played a significant role in forming the startup ecosystem in MENA. With a founder-centric approach and a strong emphasis on early-stage investments, the firm has a successful track record. Sanabil 500 MENA Accelerator Fund I, L.P. and Sanabil 500 MENA Accelerator Fund II, L.P. are significant milestones, as is the 2017 launch of 500 Falcons, L.P., one of the first MENA-focused funds by a U.S. venture capital firm. The company has made investments in more than 270 businesses in the area, including, to mention a few, Eyewa, Floward, Foodics, Gathern, Lean Technologies, Lendo, and TruKKer.
As the most influential foreign investor in Riyadh’s entrepreneurial ecosystem and one of the most active investors in MENA with the most exits in 2022, the firm has gained recognition for its noteworthy contributions. More than 400 venture capitalists, accelerator managers, and angel investors who are interested in allocating capital in the region and beyond have been trained by 500 Global Education Programs in addition to investing.
