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Middle East Venture Funding Falls 22% in First Half of 2026

1 sourceFirst reported 9 days agoUpdated 9 days ago

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Middle East venture funding decreased by 22% in the first half of 2026 compared to the previous year, according to data from the private capital platform Magnitt. The number of venture deals during this period declined by 41%. CEO Philip Bahoshy indicated that many deals were finalized prior to the US-Israel attacks on Iran. The findings reflect a significant shift in the investment landscape in the region. The downturn in funding is concerning for the startup ecosystem, which relies heavily on venture capital.

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AI summary: catch up in 20 seconds

Middle East venture funding decreased by 22% in the first half of 2026 compared to the previous year, according to data from the private capital platform Magnitt. The number of venture deals during this period declined by 41%. CEO Philip Bahoshy indicated that many deals were finalized prior to the US-Israel attacks on Iran. The findings reflect a significant shift in the investment landscape in the region. The downturn in funding is concerning for the startup ecosystem, which relies heavily on venture capital.

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