The Innovative Startups and SMEs Fund (ISSF) of Jordan has made a significant move in the country's startup ecosystem by increasing its investment in the Oasis Ventures II fund (OVII). This decision marks a substantial vote of confidence in the fund's management and the potential of Jordan's early-stage technology companies.

Investment Increase Details

The ISSF, recognized as Jordan's largest investment fund of its kind, has raised its commitment to OVII from an initial $3 million to $5 million. This $2 million increase represents a 66% boost in the ISSF's investment in the fund managed by Oasis500, a prominent Jordanian pre-seed and seed fund manager with an acceleration arm.

About Oasis500

Established in 2010, Oasis500 has played a pivotal role in the development of Jordan's startup ecosystem. As the first accelerator in the region, it has been instrumental in nurturing early-stage Information and Communication Technology (ICT) companies through pre-seed and seed funding. The firm's strategic focus on empowering these nascent businesses has contributed significantly to the growth of the Jordanian and broader MENA startup landscapes.

Partnership Impact

The collaboration between Oasis500 and the ISSF has yielded impressive results. Their joint efforts have led to investments in 36 startups, with 36% of these funded ventures being led by female founders. This partnership has been instrumental in job creation, generating 300 direct and 1,000 indirect employment opportunities. Moreover, the portfolio companies have demonstrated strong potential, collectively securing $27 million in external financing. Notably, for every dollar invested by Oasis500, the startups have managed to mobilize an additional five dollars, showcasing the fund's ability to catalyze further investment.

Strategic Rationale

Mohammed Al Muhtaseb, CEO of ISSF, emphasized the strategic importance of this increased investment. He highlighted Oasis500's crucial role in igniting the MENA region's early-stage investment scene and expressed confidence in their track record. The additional funding is intended to provide Oasis500 with more resources to support and scale successful startups within their portfolio.

Future Outlook

Luma Fawaz, CEO of Oasis500, expressed enthusiasm about the strengthened partnership with ISSF. She indicated that the additional investment would allow Oasis500 to double down on some of their top-performing startups, potentially accelerating their growth and impact on the Jordanian economy. This increased commitment is expected to further solidify Oasis500's position as a key player in the region's startup ecosystem.

The ISSF's decision to increase its investment in the Oasis Ventures II fund represents a significant boost for Jordan's startup ecosystem. By providing additional resources to Oasis500, this move is likely to catalyze further growth and innovation among early-stage ICT companies in Jordan. As these startups continue to attract external financing and create jobs, they are poised to play an increasingly important role in the country's economic development and technological advancement. This reinforced partnership between ISSF and Oasis500 sets a promising stage for the future of entrepreneurship and innovation in Jordan and the broader MENA region.