Beijing-based MSA Capital, a prominent Chinese venture capital firm with a history of investments in the Middle East & North Africa (MENA) region, is gearing up to launch a colossal $1 billion fund dedicated to Northern African pre-IPO startups. Ben Harburg, the Managing Partner of MSA Capital, recently shared this ambitious plan with various media outlets.
MSA Capital has been a key player in the MENA startup ecosystem for years, making early investments in successful companies like Tabby and Kitopi. Bloomberg reports indicate that the firm has previously raised a substantial $555 million across three funds focused on the Gulf region. Notable investors in MSA Capital include Saudi’s Jada and SVC, as well as Bahrain’s Al Waha.
The upcoming billion-dollar fund is strategically designed to support pre-IPO startups across the entire MENA region. MSA Capital is actively engaged in discussions with various investors in the Middle East, with plans to officially launch the fund later this year. If successful in raising the targeted amount, MSA Capital will claim the title of the largest venture capital fund in the Middle East, surpassing the $500 million debut fund of Saudi Technology Ventures (STV).
The Middle East has seen a surge in startup activities, and MSA Capital aims to play a pivotal role in fostering innovation and growth. With a billion-dollar war chest, the firm intends to catalyze the development of pre-IPO startups, providing them with the necessary capital to scale and succeed.
While MSA Capital has predominantly focused on Series A and beyond investments in the past, its upcoming fund marks a shift towards nurturing startups in their pre-IPO stages. The firm’s investment portfolio includes notable companies such as Saudi’s Sary, UAE’s Qashio, Egypt’s Thndr, Turkey’s Getir, and Pakistan’s PostEx.
The MENA venture capital landscape has been gaining momentum, with Saudi Technology Ventures leading the way with its $500 million fund. MSA Capital’s entrance into this space with a fund twice the size reflects the increasing confidence in the region’s startup potential.
As MSA Capital sets its sights on the MENA region with a billion-dollar fund, the stage is set for a transformative impact on the startup ecosystem. The injection of substantial capital into pre-IPO ventures could pave the way for groundbreaking innovations and redefine the entrepreneurial landscape in Northern Africa. As the negotiations with investors progress, the launch of MSA Capital’s $1 billion fund is eagerly anticipated, promising a new chapter in the evolution of the Middle East and North Africa’s startup ecosystem.