Over the past three years, Bahrain's startup landscape has seen significant fluctuations, indicating a dynamic and evolving ecosystem. Influenced by market trends, investor sentiment, and broader economic conditions, the startup scene has experienced both notable successes and challenges. This article delves into the key factors shaping Bahrain's entrepreneurial environment, highlights notable funding rounds, examines major investors, and provides a glimpse into the future of innovation in the region.

Fluctuations in Bahrain's Startup Landscape

Over the three years from 2021 to 2023, Bahrain experienced fluctuations in both the number of deals and funding raised. The number of deals decreased from 15 in 2021 to 9 in 2023, while funding raised saw a significant spike from $43 million in 2021 to $124 million in 2022, followed by a notable drop to $13 million in 2023. These fluctuations suggest a dynamic and evolving startup ecosystem, influenced by various factors such as market trends, investor sentiment, and economic conditions.

Notable Funding Rounds in Bahrain's Startup Scene

Over the past years, several Bahraini startups secured notable funding rounds, reflecting investor confidence and highlighting the potential of the local entrepreneurial landscape

Rain

Founded by Abdullah Almoaiqel, AJ Nelson, Joe Dallago, and Yehia Badawy in 2017, Rain operates a regulated cryptocurrency exchange in the Middle East. The company raised a $110 million Series B round led by Kleiner Perkins and Paradigm.

Calo

Calo is a D2C food-tech startup offering personalized meal subscriptions, raising $28.6 million in funding across 8 rounds. Founded by Ahmed Al Rawi and Moayed Almoayed, Calo raised a $13 million Seed round led by Nuwa Capital and STV.

CoinMENA

CoinMENA is a Sharia-compliant crypto-assets trading platform where users can buy, sell, store, and receive digital assets safely and securely. Founded in 2019, the company raised a $9.5 million seed round from multiple investors including Alameda Research and BECO Capital.

Estater

Estater is a real estate advisory company providing data science and market intelligence services, securing $5 million in Series A funding on Mar 22, 2023.

Most Active Investors in Bahrain's Startup Investment Landscape

In recent years, several investors have played pivotal roles in Bahrain's startup landscape, contributing capital, expertise, and support to foster growth and innovation in the region. Among these key investors were:

Investcorp

Investcorp is a renowned provider and manager of alternative investment products, catering to high-net-worth private and institutional clients. With a focus on reliability, transparency, and innovation, Investcorp has earned recognition for its superior results and value creation. Having made 87 investments, their most recent investment was recorded on Apr 30, 2024, highlighting their ongoing commitment to dynamic investment opportunities.

Almoayde Technologies

Almoayed Technologies is an IT company specializing in banking, fintech, and digital infrastructure services, serving as a venture builder, partner, and investor for tech startups in the Middle East. Established by the visionary Almoayed family, the company focuses on FinTech, Cybersecurity, EdTech, and HealthTech. Their mission is to foster innovation by identifying, supporting, and scaling startups that challenge the status quo in the digital era.

Hope Ventures

Hope Ventures, based in Bahrain, empowers promising Bahraini entrepreneurs by providing tools, resources, and networks for growth. As the investment arm of Hope Fund, it has made 13 investments in scalable Bahraini-founded businesses, focusing on knowledge building, equity investment, and opportunity facilitation. Additionally, Hope Ventures produces Bahrain's first entrepreneurship-themed reality show, Beban, where entrepreneurs pitch to regional investors.

A Glimpse Into 2024

In 2024, Bahrain's startup ecosystem witnessed significant advancements, marked by notable investments and strategic partnerships. Ahlan App, a Bahrain-based loyalty program, secured a $3 million investment at a $15 million valuation, spearheaded by Hope Ventures and supported by Al Rajhi Holdings and other angel investors. Hambro Perks Spring Studios demonstrated its commitment to the region by investing in the financial marketplace Daleel and leading a pre-seed round for Receiptable. Furthermore, Hope Ventures' "Beban" TV show forged a partnership with the Mohammed bin Rashid Innovation Fund, aimed at facilitating investment opportunities for UAE-based entrepreneurs. This collaboration underscores the regional integration of entrepreneurial support. Additionally, two Bahrain-based startups, Right Calories and Moto Lines, successfully raised funding through the "Beban" show, highlighting the increasing investor confidence and support for local innovation in Bahrain.

Bahrain's startup landscape has shown both resilience and volatility over the past three years. Despite a decrease in the number of deals, significant funding rounds and active investors like Investcorp and Hope Ventures highlight the ecosystem's potential. With continued innovation and strategic support, Bahrain is well-positioned for sustained entrepreneurial growth and success.