The EXITS MENA platform, based in Egypt, has announced a significant increase in its total capital raised from investors to $1.25 million. This boost comes after the platform successfully attracted a new round of investments, with the participation of Practical VC, an American venture capital firm based in Silicon Valley.
Practical VC specializes in secondary market deals within startups, focusing on the interests of partners and shareholders while supporting high-growth companies. The firm’s Principal Partners, Dave McClure and Aman Verjee, bring extensive experience and a proven investment track record. They have supported numerous early-stage companies such as Canva, Talkdesk, Twilio, Sentry, Gitlab, SendGrid, Credit Karma, and Solana. Their portfolio also includes successful investments in companies based in the Middle East and North Africa region, such as MaxAB, Floward, and Tribal Credit.
Exits MENA offers startups and medium-sized companies a unique blend of investment banking services. The platform combines its EXITS.me electronic platform with consulting services in financing deals, mergers and acquisitions, and investments in emerging, medium, and small companies. Entrepreneurs can confidentially market their companies and projects to registered investors and buyers on the platform. They also gain access to a wide range of services to enhance investment readiness and educational materials related to the investment landscape. This comprehensive approach increases their chances of success in investment and exit endeavors.
Since its soft launch, Exits MENA has successfully concluded six deals worth over $10 million, covering various sectors across the region, including Egypt.
To expand its scope and improve its services, EXITS MENA recently obtained a securities promotion and sponsorship license from the Egyptian Financial Regulatory Authority (FRA). This achievement came only six months after the authority approved the company’s establishment. As a result, EXITS MENA became the first investment platform in the Middle East connecting startups and small to medium-sized companies with acquirers and investors through financial technology. The platform provides advisory services related to investment and now operates within a regulated environment. This development ultimately benefits emerging companies in the entrepreneurial ecosystem in Egypt and the Middle East, as stipulated by Law №95 of 1992.
With the license in hand, Exits MENA can now offer more investment channels to its clients on the Egyptian Stock Exchange (EGX), the Small and Medium Enterprises platform, and the Nile Stock Exchange (NILEX). The platform can assist startups and small to medium-sized companies in public offerings, IPOs, and accessing capital markets to attract investments, provide liquidity, transparency, and fair valuation.
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Dave McClure, a representative of Practical VC, expressed satisfaction with the efforts and ideas of the founding team at EXITS MENA. He acknowledged their distinguished track record in building and growing companies as evidence of their success. Aman Verjee, another key partner at Practical VC, expressed admiration for the investment opportunities in the region. He emphasized the need for experienced financial advisors to provide technical support during investment and financing rounds, especially with the expected rise of successful companies in the Arab Gulf countries’ startup market over the next decade.
The Middle East and North Africa region experienced a significant 42% increase in the value of mergers and acquisitions (M&A) deals in the first quarter of 2023 compared to the same period last year, according to the latest EY MENA M&A Insights report. The report highlighted 165 deals valued at $25.8 billion in the region during that quarter, indicating a vibrant M&A outlook and poised growth for the region.
Mohamed Abul-Naga Ngati, the CEO of EXITS MENA, reaffirmed the platform’s commitment to unleashing its potential and expertise in mergers, acquisitions, and investments in the region. He expressed determination to conclude more investment deals in the technology sector. Ngati stated, “We believe that we have created opportunities for merger and acquisition deals in the region, and we will continue our efforts in this field in the future.”
Furthermore, Ngati expressed pride in Practical VC’s confidence in EXITS MENA and outlined plans for cooperation. The aim is to establish connections with technology giants from Silicon Valley in the United States and Latin America through acquisition deals, enabling EXITS MENA to become a global platform specialized in investment transactions within the technology and startup sectors.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard