Globally, there has been a significant rise in Corporate Venture Capital (CVC) funds, which has contributed to transforming industries and driving innovation. The US has been taking the lead with CVC funds giants like Intel Capital, Google Ventures, Microsoft Ventures, and plenty of others. However, what is noteworthy is the emergence of corporate venturing in the MENA region, positioning it as a key player in fostering innovation and growth.

According to Rasmal, in August 2024, the MENA region secured a notable $566 million in total funding, with the largest amount—$463 million—coming from corporate-backed investments. This surge in corporate funding demonstrates the growing interest of established companies in supporting startups that align with their strategic objectives. Such collaborations assist in bringing fresh ideas to corporations and solving pressing problems they might be facing.

In addition, corporate venturing isn’t only about funding but also about the strategic advantages, guidance, mentorship, and insights startups receive as part of these partnerships. The significant portion of the $463 million raised through corporate rounds highlights the active role corporates are playing in funding startups.

To highlight the rising role of corporate funding, Rasmal tackled the biggest corporate funding deals of August 2024, shedding light on the major players, and key sectors driving these investments.

1. Brands for Less (E-Commerce, UAE) – $360 million

Brands for Less (BFL) has announced a strategic agreement with the U.S.-based TJX Companies, Inc. (“TJX”), to sell a 35% stake in the business for $360 million.

The presence of TJX will provide BFL with the strategic guidance they need and will assist them in expanding and growing.

This major investment underscores the strength of the e-commerce sector in the UAE, which is driven by increasing consumer preference for online shopping and the demand for digital retail solutions.

2. Orbitworks (Manufacturing, UAE) - $100 million

With over $100 million in initial investment, Orbitworks, a joint venture between Abu Dhabi-based Marlan Space and Loft Orbital, is set to become the Middle East's first private space infrastructure company, marking a significant milestone in the UAE’s space sector. Loft Orbital brings its expertise and a strong industry reputation to the venture.

3. Kem Technologies (FinTech, Kuwait) – $3 million

The FinTech sector continues to draw substantial interest from corporate investors, as shown by Kem Technologies' $3 million investment round from Tether, the largest company in the digital asset industry. Such an investment provides Tether with access to the GCC through an established payment service.

It became evident that corporate funding is on the rise in the MENA region; as it’s a win-win situation for both parties, the corporations and the startups. Accordingly, it's expected to witness even more CVC presence in the MENA region in the upcoming years, given its promising potential. In Egypt and the Med region, Techne is driving innovation and growth in the ecosystem, through its Corporate Innovation Program that connects innovative startups with industry leaders to tackle key challenges faced by corporations, hence fostering collaboration and shared growth, while supporting the broader ecosystem's development.