Women driving business innovation in MENA
Women entrepreneurs in the Middle East and North Africa are changing how business operates, securing capital, and creating support systems despite ongoing investment gaps between men and women.
In 2023, startups with at least one female founder received only a small portion of total venture funding in the region. Since 2019, nearly $600 million has gone to these businesses through about 300 deals, with 2021 marking the highest point before a drop in later years. This uneven distribution reflects deeper structural issues, including unconscious bias in investor evaluations, limited access to professional networks, and the persistent assumption that women founders are less capable of scaling businesses in high-growth sectors.
Funding disparities persist
Veena Munganahalli, former co-chair of TiE Women MENA, described the gap as a major obstacle to equality. She noted that while the number of women launching startups has grown, the proportion of funding they receive has not kept pace.
Noor Haider, senior research associate at MAGNiTT, explained that while the pandemic temporarily increased funding for women-led startups, the effect faded as economic conditions worsened. Haider stated that 2021 set a record, but the following years brought declines. “In difficult economic times, overall funding drops, and startups with female founders see fewer deals as a result,” she said. The decline was not uniform across the region; some markets, like the UAE and Saudi Arabia, maintained relatively higher levels of activity due to government-backed initiatives aimed at diversifying their economies.
Erika Blazeviciute Doyle, who started the non-alcoholic beverage brand Drink Dry, chose a different path. She spoke with many venture capitalists during the company’s early days but eventually decided against taking that funding. “It wasn’t the right choice for us then,” she explained.
Building networks and reshaping ecosystems
Genia Xasis, CEO and co-founder of Berkana VC, believes collaboration can drive progress. “Diversity has room to grow, and women helping each other can create quick improvements,” she said. Berkana VC’s focus on community-building reflects a recognition that systemic change requires more than capital—it demands mentorship and peer learning. The firm’s initiatives include closed-door roundtables where founders share challenges.
Munganahalli said TiE’s programs encourage honest discussions. “We connect female founders with the broader startup community so they can talk about their experiences and needs,” she noted. “This helps investors see what support these businesses actually require.” TiE Women’s approach includes workshops on negotiation tactics, financial literacy, and media relations—skills that are critical for fundraising but often overlooked in traditional accelerator programs.
The movement for change goes beyond money. Xasis pointed out that increasing the number of women in key roles could transform business culture. “It’s not just about funding—it’s about including women’s perspectives in shaping the future of business,” she said.
Haider added that more visible female leaders in startups and venture capital might encourage greater investment in women-led companies. “The gender gap still exists, but change is happening,” she said.
The current figures show an imbalance. The women leading this effort say their work has only just started. Beyond the numbers, the push for equality is reshaping how success is measured in the region’s startup ecosystem. One founder built a nature-focused brand around clear values, showing how personal mission can shape business success.
