New York based hybrid venture capital (VC) firm, Modus Capital, launched a $75m MENA fund targeting early and growth stage companies across the region.
The firm’s first regional fund, Modus MENA Venture Fund I (MMVFI) will also focus on the region’s SMEs and allocate funds for US-based firms portable to the MENA region.
The fund is designed to invest in early to lower-mid market asset stages, a statement said.
Modus Capital’s investments range from $50,000 to $250,000, and up to $1m for seed and series A rounds. The investments are made through an incubation programme.
The fund will invest in entities carrying a strong social impact, women-oriented firms and those focused on health, education and financial inclusion, the statement said.
Areas of fintech, healthtech, direct to consumer e-commerce, and enterprise and consumer SaaS products hold particular interest to the VC firm, it added.
Its current investments include iSupportCause – an online cause-based platform in the UAE; DXwand, an artificial intelligence driven cognitive CRM software; Arbor – a digitised business card app and Yumzy, a cooking tip app for home and professional chefs.
“We believe that institutional investors like Modus Capital have a responsibility to provide more than just funding to their portfolio companies and now is the right time to offer an all-inclusive solution, harnessing the global expertise for a dynamic MENA market,” said Kareem Elsirafy, founder and managing partner, Modus Capital.
VC investments across the MENA region are growing and reached $670m in 2018, according to a recent report by STV, a Riyadh-based technology VC fund.