https://arab.news/cmk33
RIYADH: The startup ecosystem in the Middle East and North Africa region is poised to get a boost as Saudi Arabia-based venture studio VMS has acquired minority stakes in Egyptian startup accelerator Cash Cows.
The purchase of stakes is part of a strategic partnership agreement aimed at supporting the entrepreneurial ecosystem in both countries and in the wider MENA region, according to a press release.
The press release further noted that the tie up will see Cash Cows and VMS launching a joint platform for exchanging ideas, collaboration and mutual learning between them.
The platform will also provide ways for startups, investors, and entrepreneurs to access critical decisions that ensure their success, it added.
Motaz Saleh Abuonoq, founder and CEO of VMS, said that the company’s expansion in the Egyptian market was an important and strategic goal.
VMS supports talented startups entering the Saudi market provides them with guidance, resources, expertise, and connections while helping them successfully achieve their business goals.
Mohamed Nagaty, partner at Cash Cows, said that the partnership with VMS will contribute to building a bridge between Egypt and Saudi Arabia for startups, along with expanding the scope of operations for both companies.
The coming together of two regional accelerators is aimed at providing resources and support for startups and drawing a clear map for investors to achieve excellence in the highly competitive market, the release added.
“We are proud to partner with VMS, especially at a time where supporting startups and entrepreneurship has become a priority for the future of the Saudi economy. This is reflected in the performance of companies and the successful financing deals achieved,” said Ahmed Reda, managing partner and CEO of Cash Cows.
He added: “Supporting startups is an essential part of the Vision 2030 of the Kingdom. Hence, our expansion into the Saudi market through our partnership with VMS is a golden gateway to enter this promising market and an expert company in the entrepreneurship market in the Kingdom.”
Cash Cows’ portfolio of startups includes medical analysis platform CheckMe, Egyptian fuel supply platform GoFuel, and education technology platform IQ, among others.
On the other hand, VMS’s partner list includes Dawafast, Chart, Mobelia and School.
According to startup data firm MAGNiTT, the UAE, Saudi Arabia and Egypt collectively have the majority share of venture capital funding in the MENA region, accounting for about 74 percent of the total investments in 2022.
In 2022, the UAE, Saudi Arabia and Egypt garnered funding worth $1.19 billion, $987 million and $517 million, respectively, MAGNiTT added.