Venture capital investments in Qatari startups surge 182%, totalling QR31mn in H1: KPMG

Venture capital (VC) investments in Qatari startups have surged by 182% in H1, totalling QR31mn, signalling increased investor confidence in the country’s startups, a report has shown. Although the first half of the year experienced fewer deals (10) than H2, 2020 (14), the size of the deals remains robust, KPMG said in a report. Investors in Qatar chose to back industries such as e-commerce, delivery services and FinTech, which also saw increased demand during the pandemic and retained the top three spots by number and value of deals. Fascinatingly, the startups from the e-commerce sector secured approximately 60% of the total funding raised in Qatar.“Qatar’s entrepreneurial eco-system is maturing and rapidly evolving. Qatar’s strong focus on innovation and entrepreneurship is helping boost its appeal as an attractive destination for business especially for SMEs. In recent years, we have seen increased activity in the number of tech-startups gaining prominence in the Qatari market. “The increased funding along with subsequent deals is an evidence of improved confidence in the tech-startup market. Qatar is experiencing growing number of incubators, accelerators and investment funds as well as entrepreneurship programs that cater to this thriving community,” KPMG noted. Nizar Hneini, partner and head (Digital and Innovation) at KPMG in Qatar said, “As the region remains on its path to digitally transform, the startup ecosystem continues to witness a significant growth trajectory on the back of rapid digitalisation and tech adoption. “Despite the headwinds caused by the pandemic, Q2, 2021 turned out to be a blockbuster quarter for tech startups in the region – marching steadily past a total funding of over $1bn.” On Qatar’s entrepreneurial eco-system, Venkat Krishnaswamy, partner and head (Advisory) at KPMG in Qatar said, “Qatar’s strong focus on innovation and entrepreneurship is helping boost its appeal as an attractive destination for business especially for SMEs. In recent years, we have seen increased activity in the number of tech-startups gaining prominence in the Qatari market. “The increased funding along with subsequent deals is an evidence of improved confidence in the tech-startup market. Qatar is experiencing growing number of incubators, accelerators and investment funds as well as entrepreneurship programmes that cater to this thriving community.”The report also showed start-ups in the Middle East, North Africa and Turkey secured funding of more than $1.2bn during the second quarter (Q2) of 2021. The startups in the delivery services sector secured the largest funding of nearly 45% of the total investments followed by e-commerce (18%) and FinTech (17%).