Venture capital funding in the Middle East and North Africa totaled $1.9 billion in 2024, a 29% decline from the previous year, despite an increase in the number of deals as investors shifted toward early-stage investments in regional startups, according to a report released Tuesday. 

Early-stage funding is an investment in a startup’s development during its first few months, while late-stage funding comes after the startup has grown significantly and achieved several milestones, such as issuing a bond or posting a profit for several consecutive years. Early-stage investments are often lower in value and have a higher return potential than late-stage venture capital investments.

A new report by Dubai-based venture capital financial data firm MAGNiTT found that the 29% decline was due to a "significant contraction” in late-stage MEGA deals — or transactions worth $100 million or more. 

MAGNiTT noted that the Middle East decline was the smallest compared to 2024 year-on-year drops seen in venture capital fundraising in Southeast Asia (45%) and Africa (44%).