Mubasher: Mubadala Capital has launched its first MENA-focused tech investment funds to capitalise on the startup market which has been noticeably growing in the Middle East while empowering tech talent.
With a value totalling $250 million (AED 918 million), the Mubadala MENA tech funds will be allocated as $150 million (AED 550 million) “fund of funds” and $100 million (AED 367 million) for direct fund programmes.
The fund of funds will be earmarked for investing in funds that support the Abu Dhabi-based Hub71 ecosystem through investing in companies that leverage Hub71 for expansion and growth in the region, according to a press release on Monday.
Mubadala Capital will commit to three funds as a part of its first funds cohort; San Francisco-based Data Collective Venture Capital (DCVC), Middle East Ventures Partners (MEVP), and Global Ventures.
Meanwhile, the second programme is allocated for “direct investments in early stage technology companies led by exceptional founders that are committed to being part of the Hub71 ecosystem. The fund will invest in founder-led companies, targeting either enterprise or consumer sectors and have established clear product/market fit. The fund aims to invest in a portfolio of 15 companies.”
Mubadala further noted that the first investment from the direct fund is in Dubai-based Bayzat, which is one of the first firms setting up operations in Hub71 and it has raised $16 million (AED 58 million) in Series B funding from both regional and global investors such as Mubadala Capital and Point72 Ventures.
The startup Bayzat has now raised a total of $31 million (AED 133 million) and plans to use the capital in investing in its technology and customer experience.
Head of Ventures at Mubadala Capital Ibrahim Ajami commented, “The MENA funds will drive the economic development of Abu Dhabi by stimulating tech investment activity.”
Meanwhile, Co-founder and managing partner of DCVC Matt Ocko said, “We already have a deep connection to the UAE through Mubadala, but the creation of the MENA tech funds further cements this partnership. We’re looking forward to supporting local talent and exciting founder-led companies as they drive innovation from Abu Dhabi’s Hub71.”
