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Game Changer: EXITS MENA’s New Startup Fund to Amplify Local Startups on Egypt Stock Exchange Radar

August 21, 2023

In a strategic move set to reshape the landscape of startup investments, EXITS MENA has unveiled its visionary intention to launch a groundbreaking investment fund in collaboration with the Egyptian Stock Exchange. Spearheaded by Mohamed Negati, the CEO of EXITS MENA, this pioneering initiative is slated for a 2024 debut. With a resolute focus on the technology sector, the fund aims to carve a distinct niche by acquiring shares in burgeoning startups and nascent tech enterprises. These carefully curated entities will subsequently be offered collectively on the stock exchange, accentuating the depth and diversity of the investment portfolio.

Negati shed light on the meticulous groundwork already underway to bring this aspiration to fruition. Insights shared by the CEO revealed that substantive strides have been taken in laying the foundation for the fund. Ongoing discussions with both local and international financial institutions are on the horizon, marking the initial steps toward securing the necessary funding. Amid these preparations, stringent prerequisites are being met in alignment with the rigorous standards set by the Financial Supervisory Authority, culminating in the imminent acquisition of pivotal approvals.

Underscoring the collaborative spirit of this endeavor, Negati highlighted the comprehensive consultations being conducted with key stakeholders within the capital market ecosystem. Engagements with the Egyptian Stock Exchange, among other relevant parties, are in progress. The crux of these discussions centers on the viability of incorporating a select cohort of 7 to 10 enterprises within the fund’s framework. This deliberation lays the groundwork for seamless listing and trading of the participating companies’ shares, fostering a dynamic marketplace for investment.

*Mohamed Negati is the CEO of EXITS MENA. Credits: Mohamed Negati*

Negati astutely acknowledged the potential challenges of propelling an investment fund rooted in emerging technology companies. Convincing stakeholders, both investors and companies alike, demands a strategic approach and a patient outlook. The reward, however, promises to be substantial: an open avenue for lucrative returns, an influx of diverse investors, and an infusion of fresh capital into the stock exchange ecosystem.

The CEO accentuated the growing appeal of the Egyptian market for technology-oriented companies. As the fund takes shape, it is poised to attract foreign investment inflows into Egypt’s burgeoning financial technology sector. This, in turn, will catalyze the expansion of the international investor base intrigued by the manifold opportunities presented by this promising arena.

In a parallel development, the Egyptian Stock Exchange, under the leadership of Ramy El Dokani, has unveiled its own visionary pursuit. El Dokani, the Chairman of the exchange, disclosed preliminary studies aimed at ushering in an exchange dedicated exclusively to startup companies. With a targeted launch slated for 2025, this visionary exchange is set to capitalize on the surging interest, both domestic and global, in fortifying the startup ecosystem. The confluence of these two bold initiatives promises a profound transformation of Egypt’s financial landscape, poised to elevate the nation’s status as a thriving hub for innovation and investment.”

EXITS MENA fund

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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

Egypt’s EXITS MENA Expands Capital Pool to $1.25 Million, Welcomes Silicon Valley’s Practical VC as Investor

July 11, 2023

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.

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.

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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

Egyptian Marketplace, Exits MENA, Granted License to Offer IPOs, M&A and Private Placement Services

May 4, 2023

The new underwriting license granted to the Egyptian investment marketplace, Exits MENA, is a deal breaker in the MENA region. This fintech platform has been granted a securities promotion and underwriting license by the Egyptian Financial Regulatory Authority (FRA) after being approved for establishment six months earlier. With this license, Exits MENA is authorized to offer listing and public offering services to its clients on the Egyptian Stock Exchange (EGX), the small and medium-sized enterprises (SMEs) platform, and the Nile Stock Exchange (NILEX).

According to Ayman El-Tanbouly, co-founder and managing director of Exits MENA, the license will enable the platform to offer more comprehensive services, including IPOs, in addition to its existing merger and acquisition (M&A) and private placement services. This will help startups and companies meet the complex listing requirements of EGX and NILEX, including governance, legal status, financial requirements, and more. The license will also enable Exits MENA to support the growth of startups in the ecosystem and to become a leading investment platform in the region.

This platform will also qualify startups and small and medium-sized enterprises, especially in the technology sector, for mergers and acquisitions (M&As). It will provide them with necessary support to become listed. Exits MENA is the first investment platform in the region that uses fintech to connect startups and SMEs with buyers and investors by providing automated multiple investment-related services and online and offline advisory services.

In September of last year, the company raised $1 million in a pre-seed round from a group of local investors, a UK-based investment company that also goes by the name of Exits.me, Baseeta Investments Holding, and Mawelni Holding for Financial Investments. The platform has already closed many deals with a total value of $110k prior to its debut and presently has 25+ signed active sell-side and buy-side advising mandates, in addition to 30 others that have a value of between $150–200 Million and are in the pipeline.

Exits.me was established in 2022 with the intention of easing the process of mergers and acquisitions (M&As) as well as investments in companies. The company provides a streamlined and comprehensive online solution on its platform as well as a full-fledged financial advisory service. The company’s founders have the goal of assisting the local community by elevating the profile of investments and promoting education about the significance of early investments across all business functions and verticals.

Overall, the new underwriting license granted to Exits MENA is a game-changer in the MENA region, enabling the platform to offer more comprehensive services and to support the growth of startups and small and medium-sized enterprises in the ecosystem.

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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