The European Bank for Reconstruction and Development (EBRD) has pledged $3 million to Ibtikar Fund II. This fund aims to help up to 25 early-stage Palestinian tech companies. It successfully raised a total of $25 million, exceeding its original target of $15 million and doubling the size of its predecessor fund.
Boosting Digitalisation and Job Creation in Palestine
The EBRD’s investment seeks to drive digitalisation and job creation in Palestine. This marks the bank’s first equity investment in a venture capital fund in the West Bank. By supporting Ibtikar, a leading fund manager in the region, the EBRD aims to foster long-term economic growth.
Focus on Palestinian Tech Startups and Regional Expansion
Ibtikar Fund II aims to generate long-term capital growth by investing in up to 25 early-stage Palestinian tech companies. The fund can also invest in select firms from neighboring countries connected to the West Bank and Gaza. This strategy will help Palestinian tech firms expand their operations and access new markets.
Addressing Economic Challenges for Palestinian Enterprises
Micro and small businesses represent over 98 percent of enterprises in Palestine. They contribute more than 60 percent of the country’s gross domestic product. However, these businesses face serious financial challenges. Ibtikar Fund II will provide essential resources to help startups grow and innovate.
Supporting Young Entrepreneurs and Women in Tech
The investment will support young entrepreneurs and promote women’s employment in tech. This initiative aims to advance digitalisation and create new jobs. It will also strengthen economic ties between the West Bank, Gaza, and neighboring countries.
EBRD’s First Investment in West Bank Venture Capital
Anne Fossemalle, EBRD Director for Private Equity Funds, expressed excitement about partnering with Ibtikar. She noted, “We are eager to support the early-stage innovation ecosystem in the West Bank. This is our first investment in a venture-capital fund in the region. We look forward to supporting local startups during these challenging times.”
Ibtikar Welcomes EBRD’s Investment
Habib Hazzan, Managing Partner of Ibtikar, welcomed the EBRD’s investment. He emphasized their shared vision of empowering Palestinian entrepreneurs. “This partnership will boost our ability to fund innovative startups. It shows that the startup ecosystem in the West Bank has matured and is appealing to international investors,” he stated.
EBRD’s Growing Presence in the West Bank and Gaza
Since starting operations in the West Bank and Gaza in May 2017, the EBRD has approved 27 transactions worth a total of $142 million. This latest investment in Ibtikar Fund II is a significant step in the EBRD’s commitment to fostering economic development in the region.
Discover the State of Funding in MENA – 2019 to 2023 :
https://assiyaq.com/the-state-of-startup-funding-in-mena-2024-report/ of this month is taking you through the ups and downs of MENA’s startup funding over the last 5 years. If you’re a startup founder, an investor or an ecosystem builder, this is your chance to learn from the past, spot the trends, and write your own success story.
Don’t miss out on knowing the history that could shape our future!
