Dubai based venture capital firm BECO Capital has reportedly raised an amount of $10 million for its second fund from the popular International Finance Corporation (IFC) which is a member of World Bank Group.
This investment is basically a part of an effort to support technology start-ups and drive innovation across the Middle East and North Africa. According to the reports, this particular fund is being anticipated to reach up to $100 million. If BECO does close the fund with $100, it would be one of the largest in the region.
“Our vision at BECO is to improve the region through technology entrepreneurship and innovation,” said Dany Farha, the Managing Partner of BECO Capital. “With IFC as a partner, we will have the firepower to continue fueling and igniting liftoff for MENA’s disruptors, builders, and innovators.”
Along with this, IFC has invested $5 million in BECO Capital’s inaugural $50 million fund as well, which was launched in 2012. Talking about BECO, it is one of the largest venture capital companies in that region.
It has companies such as Careem, Property Finder, and Vezeeta in its portfolio. BECO Capital also has some exits under its belt including e-commerce platform JadoPado that was acquired by Noon.
It is to be noted that the company’s first fund has supported 16 technology companies, that have created more than 6,000 direct jobs and raised a total of $750 million from other investors. BECO’s second fund is expected to invest in 24 startups over the next five years.
This particular investment by IFC in BECO’s first fund will “help provide follow-on funding to high-potential portfolio companies.”
Mouayed Makhlouf, IFC Director for the Middle East and North Africa, said, “The Middle East and North Africa has a growing number of high-potential start-ups, but too often founders are held back by a lack of capital and strategic advice. Venture funds are a lifeline for startups, allowing them to grow their businesses, which in turn creates stable, well-paying jobs and drives innovation on a societal level.”
Prior to this, IFC has also invested in Egypt-focused Algebra Ventures’ $50 million fund and pan-MENA-focused Wamda Capital.