Member of the World Bank Group, IFC is investing a total of $15 million in a pair of investment funds managed by BECO Capital. The decision comes as part of their ongoing efforts to support tech startups, and drive innovation across the MENA region.
IFC has already invested $5 million in BECO Capital’s inaugural $50 million investment vehicle, that was launched in 2012, and it also invested another $10 million in BECO’s newest venture capital fund. It’s worth noting that BECO is one of the early backers of the region’s most successful tech startups such as Careem, Property Finder, and Vezeeta.
So far, BECO’s inaugural fund supported 16 tech startups, which in turn helped in creating more than 6,000 direct jobs and raised $750 million dollars from other investors. With the new funds received from IFC, BECO will help provide follow-on funding to high-potential portfolio companies and is expected to support 24 startups over five years. IFC’s support for the second fund has helped mobilize investments from other large investors such as RIMCO (a subsidiary of Rashed Al Rashed, a Saudi conglomerate) and Bahrain Development Bank’s Al Waha Fund of Funds.
Dany Farha, the Managing Partner of BECO Capital commented on the funding saying: “Our vision at BECO is to improve the region through technology entrepreneurship and innovation. She adds that with IFC as a partner, they will have the firepower to continue fueling and igniting liftoff for MENA’s disruptors, builders, and innovators.
Furthermore, Mouayed Makhlouf, IFC Director for the Middle East and North Africa, stated that entrepreneurs in the Middle East are often faced with the challenge of funding and the lack of strategic advice. “Venture funds are a lifeline for startups, allowing them to grow their businesses, which in turn creates stable, well-paying jobs and drives innovation on a societal level,” Mouayed says.
IFC has been playing a major part in building a startup ecosystem in the MENA region, by supporting entrepreneurs through the various stages of a start-up’s life cycle, from concept development to international expansion. In addition, IFC has invested in startup incubators in places like Egypt and the West Bank and Gaza, while also investing larger venture capital funds, including the pan-MENA Wamda and the Egypt-focused Algebra Ventures.