Startups had a rough 2023, with the value of venture investments hitting a four-year low. The global venture capital (VC) market saw a slower-than-usual year, falling to $243.8 billion, the lowest since 2017,  due to geopolitical tensions and high interest rates. 

Qatar witnessed one of the biggest VC hits as investments fell by 57% to $11.8 million last year. 

“The Qatari venture capital ecosystem displayed a more restrained performance in 2023, aligning closely with the global and regional deceleration observed in the venture capital landscape during the same year,” said the report by the Qatar Development Bank (QDB) in collaboration with MAGNiTT. 

The report adds that the decline in Qatar echoes the Middle East and North Africa (MENA) region, which saw a 23% decrease in funding, while the global VC ecosystem saw a 42% decline.

However, the Gulf state’s VC market witnessed a 17% compound annual growth rate (CAGR) in capital deployment and a 10% growth in transaction volumes between 2019 and 2023.

Around $130 million was injected into 187 startups in these five years, reaching 224 VC deals.

Last year’s venture funds totaled 77% and went into five industries, which include manufacturing, making up the biggest chunk with 36% of the investments, fintech (15%), and healthcare technology (12%.)

The Innovation By Design Summit is in Doha on April 24. Attendance at the summit is by invitation only. Delegates can register here to receive their exclusive invite.