Startup funding in the Middle East and North Africa reached $337.5 million across 47 deals in August 2025. While the figure represents a 57% cooldown from July’s record-breaking $783 million, it marks a robust 74% increase compared to the same period last year, indicating a healthy but more cautious market recalibrating after a month of mega-deals.
By The Numbers: August 2025
- Total Funding: $337.5 Million
- Number of Deals: 47
- Year-on-Year Growth: +74%
- Month-on-Month Change: -57%
- Top Country: Saudi Arabia ($166M)
Saudi Arabia and UAE Continue to Dominate
The investment landscape in August was heavily concentrated in the Gulf’s two largest economies. For the second consecutive month, Saudi Arabia led the region, with its startups attracting $166 million across 19 deals. The UAE followed closely, securing $154 million for 11 startups. Meanwhile, Egypt’s ecosystem continued to face challenges, raising just $14.7 million across eight deals and slipping further behind its regional peers.
Sector Spotlight: Proptech Leads as Investor Focus Shifts
August saw a clear shift in sector preferences. Proptech emerged as the top-funded category, raising $96 million across four deals, underscoring sustained investor appetite for real estate innovation. Fintech staged a strong recovery, ranking second with $68.3 million from five transactions. Contech also made a notable appearance in third place, largely driven by a single $50 million deal for MYCRANE.
Investor Caution Tilts Focus to Later Stages
The data reveals a clear trend toward mature companies, with investors prioritizing scale-ups over early-stage bets. Later-stage rounds dominated the month, with three Series B deals accounting for $112 million and three Series A deals raising $82 million. In contrast, early-stage funding saw a sharp decline, with 31 seed-stage startups securing a combined total of just $22 million. This points to a more selective funding environment where proven traction is key.
A Notable Surge for Female Founders
While the ecosystem remains predominantly male-funded, August recorded a rare and significant surge for female-led ventures. Startups with all-female founding teams raised an impressive $72.3 million across just two deals—Gathern and Phys in Saudi Arabia. This marks a milestone for women entrepreneurs in the region, even as the broader gender gap persists.
Looking Ahead
The August 2025 funding report points to a maturing MENA ecosystem. The sharp drop from July’s high suggests a market returning to a more sustainable pace, while the strong year-on-year growth signals continued long-term confidence. Investors appear to be doubling down on established, revenue-driven B2B models and later-stage companies, signaling that early-stage startups may face a more challenging fundraising climate in the months ahead.
Source: Wamda
