In a significant development for Middle East and Africa’s (MEA) entrepreneurial ecosystem, Singapore-based multi-business operator and long-term investor Agility Global has announced an investment in Global Ventures’ third fund. While the exact investment amount remains undisclosed, the backing signals a substantial vote of confidence in the region’s burgeoning startup scene, particularly in sectors like supply chain technology, energy technology, and agri-tech.

This latest fund from Global Ventures was established earlier this year, aiming to provide vital capital to early-stage companies across the Middle East and Africa. Global Ventures, founded by Noor Sweid in 2018, has carved out a niche as a Dubai-based investment firm specializing in growth-stage ventures in emerging markets, particularly within MEA. The firm’s focus on innovation and technology-driven startups aligns with Agility Global’s own strategic investment goals, creating a strong synergy between the two.

Agility Global’s Expanding Portfolio

Agility Global’s decision to invest in Global Ventures’ third fund is a continuation of its active role in supporting innovation in the MEA region. Through Agility Ventures, its corporate venture capital arm, the company has built a diverse portfolio of investments across various sectors, including clean energy, digital logistics, e-commerce, healthcare, and agri-tech. These investments target companies based in MEA or those looking to expand into the region.

Chairman of Agility Global, Tarek Sultan, emphasized the importance of fostering entrepreneurship in the region. “We are passionate champions and advocates for businesses led by the region’s new generation of entrepreneurs and innovators,” Sultan said. “The Middle East and Africa are brimming with innovation and entrepreneurial energy. Through our venture capital arm, Agility Ventures, and our investment in Global Ventures’ new MEA fund, we are encouraging the region’s startups and entrepreneurs to commercialize and scale great ideas and innovations.”

The company’s portfolio includes notable investments in companies that focus on sustainability, supply chain optimization, and technological innovation. Agility Global has consistently shown its commitment to driving technological advancement in the region, positioning itself as a key player in shaping the future of business and innovation in MEA.

A Strategic Focus on Key Sectors

Global Ventures’ third fund focuses on three critical sectors: supply chain technology, energy technology, and agri-tech. These sectors have seen significant demand for innovation, particularly in the Middle East and Africa, as businesses and governments alike push for more efficient and sustainable solutions.

Supply chain technology has become especially vital, with the disruptions caused by the COVID-19 pandemic still fresh in the minds of businesses globally. The push for more resilient, technology-driven supply chains is a priority in both the private and public sectors. Noor Sweid, Founder and Managing Partner at Global Ventures, pointed out the strategic timing of the fund’s focus.

“Anticipating a shift towards resource efficiency in sectors such as supply chain, our new fund, Fund III, is strategically aligned with industries poised for technological transformation in emerging markets over the next decade,” Sweid said.

Energy technology is another key area of focus, with the MEA region increasingly embracing renewable energy solutions. As many countries in the region work to diversify their energy mix and reduce their dependence on fossil fuels, startups that offer innovative energy solutions are well-positioned to capitalize on these opportunities. Agility Global’s backing of Global Ventures’ fund provides crucial capital to these startups at a time when the energy transition is gaining momentum across the region.

The agri-tech sector, meanwhile, addresses pressing challenges in food security and sustainable agriculture. Countries in the MEA region are particularly vulnerable to climate change and water scarcity, making agri-tech innovations critical for improving agricultural productivity and sustainability.

Empowering Female Entrepreneurs in MEA

An important aspect of Agility Global’s investment is its support for women-led ventures in the region. The venture capital industry has long struggled with a lack of gender diversity, and Agility Global is actively seeking to change that narrative. Chairman Tarek Sultan emphasized this point, noting that only about 15% of all VC ‘cheque-writers’ are women.

“We’re conscious that only about 15% of all VC ‘cheque-writers’ are women, and we’re excited to be backing a women-led fund in the region. We hope that as the venture ecosystem in the region continues to grow, it will create new opportunities for a range of stakeholders, including women-led businesses, and we’re committed to being part of growing that broader ecosystem.”

Global Ventures, under the leadership of Noor Sweid, is one of the few women-led venture capital firms in the Middle East. Sweid has been an advocate for increasing the representation of women in business and investment, and her leadership at Global Ventures has already made a significant impact in the region.

A Track Record of Success: Global Ventures’ Previous Funds

Global Ventures has an impressive track record with its previous funds, each targeting specific industries poised for growth in the Middle East and Africa.

• Global Ventures’ first fund, launched in 2018, had a thematic focus on fintech. This was a timely move, as fintech has seen explosive growth in the region, particularly in areas like mobile payments, digital banking, and financial inclusion. Many startups in the MEA region have made strides in addressing gaps in traditional banking systems, providing solutions that cater to the region’s large unbanked and underbanked populations.
• In 2022, the firm launched its second fund, which concentrated on health tech and digital health innovation. This was another strategic decision, given the rising demand for healthcare solutions accelerated by the COVID-19 pandemic. Digital health platforms, telemedicine, and health data analytics have become critical tools in enhancing healthcare accessibility and efficiency in the region. Global Ventures’ second fund capitalized on this trend, backing startups that are transforming healthcare delivery in MEA.

Now, with its third fund, Global Ventures is turning its attention to supply chain technology, energy technology, and agri-tech. The investment from Agility Global will further fuel this effort, enabling startups to develop and scale technologies that address some of the most pressing challenges in these industries.

The Broader Implications for MEA’s Startup Ecosystem

The partnership between Agility Global and Global Ventures comes at a time when the startup ecosystem in the Middle East and Africa is gaining increased attention from global investors. The region’s young population, rapid digital adoption, and growing entrepreneurial spirit make it a hotbed for innovation. However, despite the progress, startups in the region still face significant challenges, particularly around access to capital, mentorship, and market opportunities.

Agility Global’s investment is expected to help bridge some of these gaps by providing not just capital but also expertise and market access. Agility’s vast network, resources, and operational experience in sectors like logistics and energy will be invaluable to the startups supported by Global Ventures’ third fund.

Conclusion: A Bright Future for MEA Innovation

The collaboration between Agility Global and Global Ventures is a testament to the growing confidence in the MEA region’s potential to become a hub for innovation and entrepreneurship. With Agility Global’s backing, Global Ventures is well-positioned to continue supporting mission-driven founders and companies that are poised to transform key industries in the region.

As Noor Sweid highlighted, “We are incredibly grateful for the support of Agility Global, a long-standing leader in the supply chain sector regionally and globally. We are thrilled to have a true partner in Agility Global as we continue to back mission-driven founders addressing critical challenges across the Middle East and Africa.”

As MEA’s startup ecosystem continues to evolve, investments like these will play a crucial role in fostering innovation, creating jobs, and driving sustainable economic growth across the region.

photo source: Google

By; Montel Kamau

Serrari Financial Analyst

2nd October, 2024