UAE top 100 tech investors invested only 4.6% of capital on Blockchain startups

UAE top 100 tech investors invested only 4.6% of capital on Blockchain startups

Deep Knowledge Group, pioneers of big data analytics system and dashboard solutions have published a report on the top 100 tech investors in the UAE of which 4.6% of their investments are in blockchain technology while 2.9% are in Artificial Intelligence and machine learning.

The report makes several findings which include that 50% of the top 100 tech investors are venture capital entities with some of the well known blockchain investors including Crypto Oasis, Shurooq Partners, Seed Group, DisruptAD, Ghad Capital Parners, Mubadala and Ceras Ventures.

More than 50% of the top Tech investors are based out of Dubai UAE with 29% of their investments going to the Middle East startups, 17% going to GCC based entities and 18% in Africa.

74% of the top 100 tech investors have invested less than $10 million per deal, while only 11% have invested over $50 million.

In the last 12 months, Kube VC was the most active in terms of investments which totaled 48, followed closely by Maven Capital with 47 investments, and UAE Ghaf Capital making 20 investments.

The data from the report was gathered from all types of funding rounds, non-equity assistance, investors performance and characteristics were collected and analyzed according to various parameters set forth in Deep Knowledge Group evaluation criteria methodology.

The top 100 Tech investors in UAE have been selected based primarily upon the following criteria, ● number of investments made in DeepTech Companies;  potential for equity and non-equity financing (lead investors in seed/venture rounds); Investors overall background, intangible assets and philosophy;  investor investment activity;  % of successful investments; and  Investment impact on the company.

Within the framework of the given research, data related to over 3,000 investment deals, concluded by top 100 UAE tech investors, were collected. The share of deals concluded in 2022 constituted circa 20% of the total number of investment deals.

Data related to 2,600 portfolio companies, 77% of which are among active portfolio companies, has been gather and evaluated according to the ranking framework as well.

Prior to this report, LaraontheBlock issued a survey in early January 2023 entitled “MENA Investor Survey 2022-2023 for crypto Blockchain sector” found that 50% of those surveyed stated they will be allocating more funds to blockchain and crypto projects and entities in 2023. 19% of those surveyed stated in 2022 they had invested more than 50% of allocated capital and funds into crypto and Blockchain projects.

In June 2023 GCC (Gulf Cooperation Council) and MENA based Investcorp, a global alternative investment firm has led a $15 million investment round for BitMe a Spanish crypto exchange. Included in the list of investors was Telefonica Ventures, Stratminds VC, Cardano, and YGG Fund.While just this week, UAE based Global Millennial Capital Ltd (“Global”), an emerging technology and digital assets investment manager, and venture capital firm launched its Global Millennial Web3 Investment Program, out of UAE which aims to accelerate emerging companies to their full potential in the realm of Web3, DeFi, and Blockchain.

UAE SEED group partners with two new Blockchain Web3 entities

UAE SEED group partners with two new Blockchain Web3 entities

Over the years, UAE SEED Group has partnered with several or more blockchain and crypto entities as part of its business development activities for the region. Recently SEED Group has partnered with Canadian Blockchain Web 3.0 metaverse company TerraZero technologies, as well as with Farm to Plate , a blockchain-powered SaaS platform built to empower the food supply chain with end-to-end transparency and trust.

 As part of the partnership with TerraZero, Seed Group will help bring its services to SMEs and businesses in the UAE and the Middle East and help them make inroads into the high-potential world of Metaverse.

In reflecting upon the partnership, Hisham Al Gurg, CEO of Seed Group and the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, states, “The Metaverse will become an integral part of all businesses sooner than we realize. The launch of the Dubai Metaverse Strategy was a major step in the direction of turning Dubai into one of the world’s top 10 Metaverse economies as well as a global hub for the Metaverse community. Our partnership with TerraZero seeks to further empower this aim of the emirate. I believe the association will prove fruitful to not just businesses in the UAE but to the regional economic ecosystem on the whole.”

“It is clear where innovation is taking place when it pertains to the future of the Internet and the Metaverse. This is a monumental moment for the industry, and TerraZero sees massive growth potential. Our partnership with the Seed Group will empower the next generation of enterprise businesses and brands to monetize and progress their ecommerce and omnichannel strategies, just as much as we can open the door for legacy corporations and government entities to meaningfully connect with their audiences–and create new ways to build equity in all forms,” says TerraZero CEO Dan Reitzik.

In addition Seed Group onboarded Farm to Plate as its new strategic partner, with an aim to help and guide it to bring its solutions to the UAE and the region. Seed Group will facilitate Farm to Plate’s growth with guidance on how to reach the right audience, access top decision-makers in the government as well as private sectors, and contribute to adding the latest technological innovations in the region.

Farm to Plate is transforming how the food and beverage industry operates through a digital platform that empowers stakeholders to better manage their food supply chain – with visibility from farm to plate. Built by global software developer Paramount Software Solutions, one of the top award-winning tech companies in Atlanta, the Farm To Plate platform uses emerging technologies like Blockchain to work with customers’ existing software assets and provide customisable, secure, web-based visibility of the food and beverage supply chain. With Farm to Plate, stakeholders now have one view of their entire chain of supply – eliminating any chances of data fudging or misalignment. At the same time, the use of blockchain ensures direct financial transactions, secure data management and access controls – creating a truly secure digital ecosystem.

Environmentally friendly Crypto mining Hosting company enters UAE with UAE SEED Group

Environmentally friendly Crypto mining Hosting company enters UAE with UAE SEED Group

Even before the UAE and specifically Dubai release their crypto mining regulations, companies have already started operating in the country. Recently 2Bminer, crypto mining hosting center with operations in the UAE, Czech Republic, and USA, signed a partnership agreement with UAE Seed Group, a company of the Private office of Sheikh Saeed Bin Ahmed Al Maktoum.

The announcement and the fact that 2Bminer is present in the UAE is not surprising. Prior to this, UAE-based Phoenix Technology Consultants signed a $650 million order for crypto mining rigs as part of its expansion plans in UAE and MENA region, while a UAE Sovereign wealth Fund is building one of the biggest crypto mining farms in the region under the strategic guidance of Roland Berger.

It would seem that 2BMiner is espousing its ecofriendly nature. As per 2Bminer website, their crypto mining machines mainly use hydro, wind and solar power. Sustainability is something that the UAE government is keen on. The company offers the sale of mining machines and as well as the placement of those machines in their centers and under their management. In short 2Bminer offers mining hosting services.

As per the press release, the agreement with UAE SEED group, SEED will help 2bminer.com expand its operations in the Emirates and the wider Middle East, reach the right audience, access top decision-makers in the government as well as private sectors, and market their crypto mining products and services effectively in the region.  While 2Bminer will focus on transforming the crypto mining market of the UAE by providing the best machines, technical support, and global hosting centers to make the minting of cryptocurrencies easier and more profitable. 

Hisham Al Gurg, CEO of Seed Group and the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, said: “As cryptocurrencies are becoming increasingly popular, people are eager to invest in them and make profits. The UAE wants to establish a crypto mining ecosystem, offering a growth-oriented environment to FinTech companies and world-class mining services to clients in the region itself. Companies offering mining equipment, hosting services, world-class facilities, and good returns to investors at globally competitive rates hold huge potential in the Emirates’ digital economy.”

Jakub Hlavenka, CEO, 2bminer.com, said: “We are pleased to enter into a mutually beneficial partnership with SEED Group. The collaboration will help propel our business interests and goals in the MENA region through the group’s support and a strong base of regional connections. We are committed to providing the best platform for crypto mining in the region.”

This is not the first agreement SEED group has signed with Blockchain and crypto entities. Over the years, UAE SEED Group has announced many such partnerships examples include Ubirch, a German blockchain cyber security specialist, DiamondBack, creators diamondbacked stablecoin, DeepDive Technology, OwlTing for Blockchain ecommerce solutions for travel services, Aergo Foundation and Blocko, Fantom Foundation and Liquefy a security token solution provider.

Of those companies, Liquefy no longer seems to exist, DiamondBack has no presence in UAE nor does it seem to be active. As for Ubirch, they are in the UAE but no major announcements have been made thus far along the lines of their activities in the UAE.

As for OwlTing, it still seems to be active in China and Asia but no activities in the MENA region. Then there is Fantom Foundation which has seen some controversy over the past year despite its strong presence at Consensys 2022 and announcements that TrustWallet now supports Fantom.  

As for DeepDive, it has built partnerships in the UAE. It is a partner of UAE Bedu which encompasses an NFT factory, and metaverse solution provider. 

So in short, while SEED has partnered over the years with several entities in the Blockchain and crypto sector we have yet to see strong hanging fruits of these partnerships on the ground in the UAE. Even though some have managed to make some inroads. The recent one with 2Bminer might be a game changer for SEED, we will just have to wait and see.