Development funding arm of World Bank had also invested in Beco's first fund
The International Finance Corporation, a development funding arm of the World Bank Group, has committed an investment of $10 million to Dubai-based venture capital firm Beco Capital's new fund.
In a press release issued on Wednesday, IFC said it had invested $5 million into Beco Capital's first $50 million fund, which was raised in 2012, and will now invest $10 million in its latest fund, which is expected to raise up to $100 million.
Beco's first fund has backed 16 technology companies in the region, including ride-hailing service Careem, delivery company Fetchr and real estate portal propertyfinder. Most of these are still active investments, but it has also achieved a number of exits including Roundmenu (sold to Careem), online shopping firm Jadopado (sold to Noon) and an artificial intelligence speech tool known as Wrappup (sold to Voicera).
The second fund is expected to make investments in 24 companies and has also received backing from RIMCO (a division of the Saudi Arabian Rashed Al Rashed conglomerate) and Bahrain Development Bank’s Al Waha Fund of Funds.
In the press release, IFC's director for the Middle East and North Africa, Mouayed Makhlouf, said that the region "has a growing number of high-potential start-ups, but too often founders are held back by a lack of capital and strategic advice. Venture funds are a lifeline for start-ups, allowing them to grow their businesses, which in turn creates stable, well-paying jobs and drives innovation on a societal level.”
Dany Farha, the managing partner of Beco Capital, added: "Our vision at Beco is to improve the region through technology entrepreneurship and innovation. With IFC as a partner, we will have the firepower to continue fueling and igniting lift-off for MENA’s disruptors, builders, and innovators.”
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