VC Valuation in MENA: A 2025 Reality Check (Jada Fund of Funds)

Summary

• FinTech, e-commerce, and SaaS continue to dominate investor attention, accounting for up to 60% of sector focus survey responses.p.3
• Up to 75% of respondents noted that current valuations have risen modestly or significantly compared to end of 2023.p.4
• Nearly 60% of respondents consider Series A and Series B valuations to be higher than in 2023, while pre-seed and seed valuations remain largely unchanged.p.4
• Nearly 70% of fund managers reported modest or significant improvements in the exit environment since 2023.p.5

Key insights

1. Roughly half of the surveyed MENA VC managers oversee fund sizes between $30 million and $130 million.p.3
2. PropTech captured around 10% of sector focus and holds the highest average deal size in the region.p.3
3. AI captured roughly 10% of sector focus, showing a high number of deals but lower overall transaction values.p.3
4. Up to 75% of survey respondents reported higher valuations compared to late 2023.p.4
5. Valuation increases since 2023 are concentrated in Series A and Series B rounds, with early-stage pre-seed and seed valuations staying flat.p.4
6. Comparable transactions and revenue multiples are the most widely used valuation tools among Saudi-based venture managers.p.4
7. Secondary transactions have emerged as the most frequently cited exit route for partial liquidity.p.5
8. Limited exit routes and limited follow-on funding are identified as the primary risks to future valuation growth.p.5