In a significant move that underscores the burgeoning tech landscape in the Middle East, Quantum, a leading ad-tech platform based in Saudi Arabia, has announced it has secured $7 million in Pre-Series-A funding from HearstLab. This investment marks HearstLab's first venture into the region and signals a robust interest in supporting women-led startups in the tech sector.

The Growth of Quantum

Founded in 2020 by Omar Malaikah and Sara Bin Ladin, Quantum operates at the intersection of advertisers and publishers, providing a platform that enables seamless ad space transactions while delivering comprehensive data analytics and return on investment (ROI) metrics. This innovative approach not only empowers advertisers to effectively choose their preferred publishers but also positions Quantum as a trailblazer amid the rapid expansion of e-commerce in the region.

Since its inception, Quantum has navigated through challenges posed by fluctuating global advertising budgets and has managed to sustain impressive growth. The company's platform is pivotal in addressing a notable gap in the Middle Eastern market, facilitating connections between online publishers and advertisers during a critical phase of digital transformation.

HearstLab's Strategic Focus

HearstLab, the investment arm of the Hearst Corporation, has dedicated itself to scaling early-stage, women-led tech startups. This latest investment aligns with HearstLab’s mission to bridge the gap in venture capital funding for female entrepreneurs. Since its launch in 2015, HearstLab has successfully invested in over 70 startups globally, collectively valued at more than $2.5 billion.

Sara Bin Ladin, CTO and General Manager of Quantum, expressed her enthusiasm regarding the partnership, stating, “HearstLab’s investment represents a significant milestone not only for Quantum but also for the region’s tech industry. This partnership is more than just an investment; it’s a strategic alliance that will enhance our capabilities and visibility and create new opportunities across the region.”

Reinforcing Regional Innovation

As Saudi Arabia embarks on its Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil, Quantum's success is emblematic of the country's commitment to innovation. Omar Malaikah, CEO of Quantum, highlighted the importance of this investment in furthering the goals of Vision 2030, remarking, “We are proud to be at the forefront of media and data innovation. HearstLab’s backing shows the great potential that Saudi Arabia has as a hub for cutting-edge technologies across all sectors.”

This partnership not only showcases the potential of local startups but also reflects a growing trend of international investment in the Middle East’s technology landscape. HearstLab's backing is anticipated to provide Quantum with access to extensive resources and expertise, enabling it to further develop its platform and expand its reach within the region.

HearstLab's Vision in the GCC

HearstLab has actively expanded its operations beyond the United States since 2019, now focusing on women-led companies in the Netherlands, the United Kingdom, Spain, and Japan. With the establishment of its presence in the Gulf Cooperation Council (GCC) region, HearstLab aims to foster innovation and growth among local startups. Eve Burton, Chairwoman of HearstLab, remarked, “Our scout network harnesses the expertise of nearly 200 Hearst employees to support female-led startups, ensuring they thrive in a competitive market.”

Nejoud Al Mulaik, Fitch Ratings Saudi General Manager and a HearstLab Scout, played a crucial role in facilitating the investment, recognizing Quantum’s potential early on. Al Mulaik emphasized Fitch's commitment to supporting local startups, noting, “This investment not only highlights Quantum’s success but also underscores the GCC’s growing reputation as a center for technological innovation.”

The investment in Quantum by HearstLab signifies a pivotal moment for the Saudi tech industry and the broader GCC region. By empowering innovative startups, particularly those led by women, HearstLab is not only contributing to economic diversification but also enhancing the visibility and capabilities of local firms. As Quantum continues to bridge the gap between advertisers and publishers while maximizing campaign effectiveness, it stands poised to play a vital role in the future of digital marketing within the Middle East's evolving landscape. This collaboration between Quantum and HearstLab epitomizes the potential of partnerships in fostering growth and innovation in emerging markets.