Title: VMS Acquires Minority Stakes in Egyptian Startup Accelerator Cash Cows, Boosting the MENA Startup Ecosystem
Introduction
The startup ecosystem in the Middle East and North Africa (MENA) region is set to receive a significant boost as Saudi Arabia-based venture studio VMS acquires minority stakes in Egyptian startup accelerator Cash Cows. This strategic partnership aims to support the entrepreneurial ecosystem in both countries and the wider MENA region. The collaboration between Cash Cows and VMS will create a joint platform for exchanging ideas, collaboration, and mutual learning. Additionally, the platform will provide startups, investors, and entrepreneurs with critical decisions that ensure their success.
Expanding into the Egyptian Market
Motaz Saleh Abuonoq, founder and CEO of VMS, emphasizes the importance of expanding into the Egyptian market as a strategic goal for the company. VMS supports talented startups entering the Saudi market by providing guidance, resources, expertise, and connections to help them achieve their business goals. This partnership with Cash Cows will contribute to building a bridge between Egypt and Saudi Arabia for startups, expanding the scope of operations for both companies.
Supporting Startups and Investors
The collaboration between these two regional accelerators aims to provide resources and support for startups while creating a clear map for investors to achieve excellence in the highly competitive market. Ahmed Reda, managing partner and CEO of Cash Cows, highlights the significance of supporting startups and entrepreneurship as a priority for the future of the Saudi economy. This aligns with the Vision 2030 of the Kingdom, where supporting startups plays an essential role. The partnership with VMS serves as a golden gateway for Cash Cows to enter the promising Saudi market and leverage VMS’s expertise in the entrepreneurship market.
Portfolio Highlights
Cash Cows boasts an impressive portfolio of startups, including CheckMe, a medical analysis platform; GoFuel, an Egyptian fuel supply platform; and IQ, an education technology platform, among others. On the other hand, VMS’s partner list includes Dawafast, Chart, Mobelia, and School. These partnerships demonstrate the diverse range of industries and sectors that both Cash Cows and VMS are actively involved in, further enhancing their ability to support startups across various domains.
Venture Capital Funding in MENA
According to startup data firm MAGNiTT, the UAE, Saudi Arabia, and Egypt collectively hold the majority share of venture capital funding in the MENA region. In 2022, these three countries accounted for approximately 74% of total investments. The UAE secured funding worth $1.19 billion, Saudi Arabia received $987 million, and Egypt garnered $517 million. This data highlights the significant potential for startups in the MENA region and the growing interest from investors.
Conclusion
The strategic partnership between VMS and Cash Cows marks a significant milestone in the MENA startup ecosystem. By acquiring minority stakes in Cash Cows, VMS aims to support startups in both Saudi Arabia and Egypt while fostering collaboration and mutual learning between the two countries. This partnership will provide startups, investors, and entrepreneurs with critical decisions that ensure their success. With the majority share of venture capital funding in the region, the UAE, Saudi Arabia, and Egypt continue to be attractive destinations for startups and investors alike. As the startup landscape in MENA continues to evolve, collaborations like this will play a vital role in driving innovation and economic growth.