MENA Startups Raised $52 Million in June 2025, Marking Steepest Monthly Drop This Year
The startup ecosystem in the Middle East and North Africa (MENA) region faced a significant downturn in June 2025, with just $52 million raised across various deals. This represents the steepest monthly decline recorded in the region this year, reflecting heightened investor caution and an evolving funding landscape.
According to data from industry trackers, the capital raised in June saw a 47% drop compared to May 2025. Startups in the region had been demonstrating resilience early in the year, with several months boasting nine-figure investment rounds. However, the current figures underline growing macroeconomic uncertainties and shifting investor sentiment.
The largest share of funding in June was secured by fintech and e-commerce startups, industries that have historically attracted a sizable portion of the region’s venture capital. Notable rounds included investments in financial services platforms and online marketplaces, although the individual sizes of deals were generally more modest than in previous months.
Industry analysts cite the tightening of global monetary policy and rising geopolitical tensions as factors contributing to the investment slowdown. Many venture capital firms have reportedly adopted a more prudent approach, focusing on their existing portfolio companies rather than seeking new opportunities. In a notable comment, (Quote: “Investors are becoming more selective, prioritizing sustainability and clear paths to profitability.”)
Despite the downturn, there are areas of optimism. Several seed-stage startups continue to attract attention, and local governments have reiterated their commitments to nurturing entrepreneurship through supportive regulatory reforms and incentives.
As the second half of 2025 unfolds, founders and investors alike will be watching closely for signs of recovery. The performance of the regional ecosystem in the coming months will likely depend on broader economic conditions and the ability of startups to demonstrate resilience and scalability in a shifting market.
Team V.INO-LNK
