??? Saudi’s fintech breaks records

In today’s edition, we’re looking into Saudi’s impressive venture capital scene. While the global market has faced some tough times, Saudi’s focus on digital growth and Vision 2030 has helped it stay on top.

Join us as we unpack the numbers, what’s been driving early-stage investments, and what’s ahead for startups in the Kingdom.

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??? Saudi’s fintech breaks records

2024 hasn’t been the easiest year for global venture capital.? Funding’s been tighter, and big deals have been few and far between.

But while the global scene slows down, Saudi Arabia is doing its own thing. With Vision 2030 pushing things forward and a big focus on digital growth, the Kingdom has stayed on top, leading MENA in funding for the second year in a row.

Here’s what the numbers and trends are telling us, based on the latest 2024 Saudi Arabia Venture Capital Report.

A record year for deals

Despite a sharp 44% dip in total funding, Saudi startups pulled in $750 million this year. The dip comes down to a lack of mega deals (those over $100 million).?

These large funding rounds were behind much of the total capital in recent years, so the absence of mega deals in 2024 weighed heavily on the numbers.

But there’s another side to the story:?

• The number of deals hit a historic high—178 transactions, up 16% from last year.
• Early-stage funding led the way, with SEED funding surging 64% and Series A deals growing 30%.

This shows the focus is shifting to building a strong foundation for the future, even if the big-ticket deals aren’t happening right now. Saudi Arabia is playing the long game, and it’s working.

Early-stage is leading the way

One thing that really stands out in Saudi Arabia’s venture capital scene is the heavy focus on early-stage funding. A huge 85% of all deals were at the SEED and Series A stages, while late-stage deals made up just 1%.

This focus on early-stage startups is awesome for building that solid foundation, but it raises a key question: What happens when these startups are ready to scale?

Without more late-stage funding options, Saudi Arabia could face a gap in producing the next batch of unicorns.

Why Investors are eyeing Saudi

The Kingdom is making sure entrepreneurs have everything they need to succeed, whether it’s through grants, startup competitions, or supportive policies.? And it’s clearly paying off:

• In 2024, 135 investors got involved, with international investors now accounting for 29% of the total (up from 20% last year).?

• U.S.based investors doubled their share to 16%, which shows there’s a growing appetite for Saudi opportunities.

This kind of attention says a lot about Saudi Arabia’s growing reputation as a destination for venture capital.

Hurdles Saudi Arabia still faces

While Saudi Arabia has made impressive progress, there are a few challenges still in the way:

• Lack of mega deals: One of the biggest hurdles is the absence of large investments over $100 million. Without these big-ticket deals, startups could struggle to scale up and move beyond their early stages.

• Industry concentration: Right now, e-commerce and fintech are the dominant sectors. While these are thriving, areas like deep tech and renewable energy are still being overlooked.

• Talent shortages: As industries like AI and robotics take off, there’s a growing demand for specialised skills that the talent pool just can't meet right now.

These challenges aren’t easy to solve, but they’re necessary steps if Saudi Arabia wants to be a true global innovation hub.

What’s Next?

Saudi Arabia’s venture capital scene is heading into an exciting phase. Here’s what’s coming:

• More global investors: As Saudi Arabia’s reputation as a tech hub grows, we can expect to see even more international investors jumping in.

• Scaling startups: While the focus on early-stage startups will continue, the next big step will be helping these companies grow and scale up.

• Tapping into new industries: Sectors like green energy, deep tech, and advanced manufacturing have huge potential, and Saudi Arabia is poised to explore them more.

The country is already laying the groundwork. Initiatives like the Saudi Innovation Grant Program (SIGP) and events like the Global AI Summit show just how serious the Kingdom is about building an economy that thrives on innovation.

?? What do you think made Saudi Arabia top MENA funding again?

?? Numou partners with top lenders to make financing easier for UAE’s SMEs.

?? Al Ansari Financial Services teams up with Abhi Middle East to bring more financial solutions and a smoother experience to customers in the region.

?? Mastercard partners with ruya to launch Islamic banking card solutions in the UAE for individuals and businesses.

?? Paymob secures UAE Central Bank’s Retail Payment Services License.

?? AIFT strengthens its Middle East presence with new investment from Dubai Insurance and key new hires.

??? Open banking is driving a fintech boom in the GCC, with payments expected to grow to $930B by 2028.

?? Meme coin chaos disrupts Solana, sending investors toward 1Fuel’s public presale and its 50x growth promise.

?? LINE introduces Mini Dapps on its messaging platform to boost Web3 adoption in Asia.?

?? Fear of a sudden financial crisis sparks a sharp drop in Bitcoin and crypto prices, with Bitcoin falling below $100,000.

?? The SEC clears the way for Wall Street banks to hold crypto, overturning a costly Biden-era rule.

?? UAE fintech Pluto raises $4.1M to expand into Saudi Arabia and grow its Pluto Connect platform across the GCC.

?? MoneyHash secures $5.2M in pre-A funding to expand its payment orchestration platform across the Middle East and Africa.

??Saudi fintech Ebana raises $2.66M in Pre-Series A funding to improve corporate governance tech and expand digital solutions.

?? Oman’s Sampo AI raises $750,000 to improve e-commerce pricing, with plans to expand into Saudi Arabia and UAE.

?? 500 Global launches 500 MENA fund to support high-growth tech startups in the region.?

Hey AI enthusiast, this is our first appearance in the Crunch and so a warm hello to you all!

We have a Quick News Round-up: From Super-Fast Chips to Smarter Learning and Beyond:

• AI in Wireless Chip Design: Researchers at Princeton University have utilized AI to significantly reduce the time and cost associated with designing new wireless chips, leading to improved performance.
• AI for Medical Image Analysis: AI algorithms based on deep learning have shown potential in enhancing the analysis of medical image data, particularly in determining the location and size of tumors, leading to more precise medical diagnostics.
• Bio-inspired Wind Sensing: Researchers at the Institute of Science Tokyo have developed a method to detect wind direction with 99% accuracy using strain sensors on flexible wings, potentially revolutionizing robotic flight control strategies.
• AI in Education: The U.S. Department of Education has released insights and recommendations on AI’s role in teaching, learning, research, and assessment, emphasizing the importance of responsible AI use in education.
• AI Governance: The Government AI Readiness Index from Oxford Insights notes significant progress in AI governance, especially with the adoption of AI strategies in lower-middle-income and low-income countries, signaling a global commitment to building foundational AI governance frameworks.
• AI Ethics and Development:? The AI Index Report 2024 by Stanford University discusses trends in responsible AI, including metrics, research, and benchmarks in areas like privacy, transparency, security, and fairness. It also highlights the performance differences between closed and open AI models.?

References for deep-dive:

• AI in Wireless Chip Design: AI slashes cost and time for chip design, but that is not all
• AI for Medical Image Analysis: AI in Medical Image Analysis: Redefining Diagnostic Accuracy and Speed
• Bio-inspired Wind Sensing: Bio-Inspired Wind Sensing Technology
• AI in Education: Artificial Intelligence and the Future of Teaching and Learning: Insights and Recommendations
• AI Governance: Government AI Readiness Index
• AI Ethics and Development: AI Index Report 2024

Liked this section? For more such news plus insights on AI, you can read our newsletter here. Carefully curated from hundreds of sources for business leaders and startup founders.

Long overshadowed by its B2C counterpart (think of Affirm, Klarna, and Afterpay), B2B BNPL has emerged from the shadows in 2024. B2B BNPL now offers businesses flexible payment terms empowering them to manage cash flow and fuel growth.

This year highlighted three major trends:?

1. Strategic partnerships enabling seamless plug-and-play solutions for merchants;
2. Significant focus on expanding payment flexibility with options ranging from 15-day deferrals to multi-month installments;
3. argeted market expansions driven by substantial funding to fintechs that are empowering businesses to address liquidity gaps and extend purchasing power globally.?

These shifts are paving the way for a more agile and accessible financial ecosystem for MSMEs and large enterprises alike. Check out the highlights and key insights from 2024’s top BNPL moves to understand what’s next for business payment flexibility!

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

Today he shares a simple strategy outlining the dos and don’ts of eating at night.

Hey Amigos,

I remember waking up feeling like I’d been hit by a truck—bloated and more tired than when I went to bed.

Sound familiar? Do you wake up groggy and feel “not thin”? It’s not just about how many hours you sleep—it’s also about what you ate the night before.

Eating the wrong foods before bed can encourage visceral fat storage and set you up for failure the following day. It’s not only the calories that matter but also the blood glucose spikes certain foods provoke.

Here’s a simple strategy outlining the dos and don’ts of eating at night.

The strategy: eat foods that support sleep

Eating late at night can interfere with REM sleep (the stage when your body releases more testosterone and growth hormone).

However, choosing the right foods for dinner can help balance your hormones and even support calorie burning (yes, burning calories while you sleep—crazy, right?).

By focusing on slow-digesting proteins and complex carbs, you provide your body with the building blocks to build muscle, burn calories through the thermic effect of food, and avoid blood sugar spikes that can disrupt REM sleep.

99% of people don’t know this: Including foods rich in tryptophan, like turkey, eggs, nuts, and seeds, can help you sleep better, deeper, and longer by promoting melatonin (the sleep hormone) production.

The tactics: food composition

The 8 PM Rule – Aim to finish eating at least 2 hours before bed. This gives your body time to digest and transition fully into parasympathetic mode (rest and relax).

These 2 foods promote sleep and recovery WITHOUT blood sugar spikes:

• Slow-digesting proteins: Foods like Greek yogurt, cottage cheese, lean meats, and eggs provide amino acids that aid muscle repair without spiking blood sugar.
• Complex carbohydrates: Small portions of complex carbs like whole grains or sweet potatoes can boost serotonin, which supports melatonin production.

The habit: reduce decision fatigue

Two quotes to remember:

1. Remember the 4Ps: Planning prevents poor performance. Decide on your meal timing, food choices, and post-dinner routine before the evening slump hits.
2. “When emotions go up, intelligence goes down.” Preparing in advance helps you stick to healthy choices even when your energy and motivation are low.

P.S. These food choices support metabolic flexibility over time, helping your body transition smoothly between carb and fat energy sources and promoting fat oxidation during sleep.

That’s it for now. Found this helpful? Share this with someone who needs it.

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