A continuum is a series ofconnected stages that form a unified whole: fluid, uninterrupted, and relianton each part to function as intended. In the concept of light, what we perceiveas white light is actually the seamless blending of multiple colors. If we removeeven one part of the spectrum, then the completeness of the light is lost. Acontinuum requires every element to be present for the whole to be complete.

In venture capital, the investment continuum is what enables founders to grow their idea into a concept, a company, and eventually an institution. Each funding round plays a distinct role in astartup’s evolution. Seed capital supports the idea. Series A proves revenueand early traction. Series B is rocket fuel for the company's growth. Series C brings increased governance and institutionalization.

In this capital continuum, every funding stage enables companies to progress along the spectrum. A gap in the continuummeans a broken flow, slowing momentum, stalling companies, and delaying long-termeconomic growth.

The MENA (Middle East and NorthAfrica) region’s venture funding has grown significantly, expanding threefold from $600 million in 2017 to $1.8 billion in 2024,compared to just 1.8x growth globally over the sameperiod. Despite this incrediblegrowth, not all parts of the capital continuum have experienced equal orrelatively comparable momentum, and the total quantum remains less than 10% oftotal global venture funding.

While Pre-Seed and Seedfunding are accessible to many founders in the MENA region and have grown by a34% CAGR since 2020, reaching almost $1 billion in 2024, Series B fundingremains mythical to most founders, with a 22% CAGR for the same period,reaching $550 million in 2024.

To understandwhether the difficulty in Series B is anecdotal or structural, a Seed equivalencytest, which compares the amount of capital invested at the Seed stage to thatof Series B, quantifies the gap. To be specific, for every dollar invested in Seed-stagecompanies in the MENA region in 2024, $0.60 was invested in Series B companies.This compares with $1.8 in EU-based companies and $2.2 in US-based companiesfor every dollar invested in their Seed-stage companies. In total, this amountrepresents a $1.4 billion gap if the MENA region aimed to match the US in arelative Seed-Series B ratio and a $1 billion gap to match Europe. This marks a45% increase over the $950 million Series B gap in 2023.

Strengthened by their adversity advantage, Series B companies in the region typically generate $10 million to $20 million in annual recurring revenue (ARR), are EBITDA-neutral or positive, and grow their revenues 50% to 100%year-on-year. As a result, they are able to survive and scale despite the breakdown of the capital continuum. However, this gap limits the amount of acceleration capital they have to capture the momentum as founders spend time and energy finding scarce Series B capital rather than continuing to grow their businesses.

This de-risked but undervalued Series B, which founders often find themselves in, offers investors a rare opportunity to enter at early-stage multiples while capturing the upside of early growthtraction. In addition, the lack of funding has created attractive valuations,with the average Series B revenue multiple in 2024 transacting at 11.2 in MENAcompared with 28.3 in the rest of the world.

The opportunity to invest at this stage could not be more timely. The World Bank recently raised its GDP growth forecast for the UAE to 4.6% in 2025 and 4.9% in 2026, while lowering its 2026 projection for OECD countries from 3.3% to 3%. 2024 marked the highest IPO volumes in GCC history, with 53 listings raising $13.2 billion. Meanwhile, the region’s first decacorn, Talabat, has been listed on the Dubai Financial Market, proving that large-scale exits are not only possible - they have been done.

While Series B funding may pose aglobal challenge, in MENA it stands out as a clear opportunity to lean into.The region doesn’t need to reinvent the venture model. Many of the buildingblocks are already in place: favorable macroeconomic tailwinds, activeearly-stage capital, rising global investor interest, strong talent, andexpanding public markets.

What remains is completing thecapital continuum - making growth capital a natural progression, not anexception.  In simple terms, we mustbridge the gap.

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