Start-ups in Abu Dhabi’s Hub71 hit $1bn in fundraising since 2019

The global technology ecosystem selected 21 new businesses last month to join its latest cohort, growing its community to more than 200 companies

Set up in March 2019, Hub71 is based in the Abu Dhabi Global Market, the emirate's financial free zone. Photo: Hub71

Abu Dhabi-based global technology ecosystem Hub71 said its start-ups have collectively raised $1 billion in venture capital funding since its launch in 2019.

Last month, Hub71 selected 21 new start-ups from six countries, which operate in different strategic sectors of the economy, to join its latest cohort that helped to grow its community to more than 200 companies.

“A true sign of a quality start-up is a founder’s proven ability to raise capital from high-profile investors,” said Badr Al-Olama, acting chief executive of Hub71.

“As the start-ups we have onboarded at Hub71 have raised $1 billion collectively, our community is increasingly accelerating deal flow and reinforcing Abu Dhabi’s stature as a top investment destination for start-ups at all stages,” Mr Al-Olama said.

This year, Hub71 signed up 53 high-growth technology companies with a track record of attracting large-scale investment from leading venture capital firms.

Nine start-ups signed up by Hub71 this year raised more than $10 million in funding each to take their total funding to $156.7 million.

This includes Axiom, a start-up that helps companies monitor and analyse data, which raised $25 million. This was the highest by any start-up joining Hub71 this year, and 257 per cent more than the highest amount raised by a start-up joining the technology ecosystem last year.

“We are setting the tone for 2023 and remain committed to helping our founders create global impact from our ecosystem,” Mr Al-Olama said.

CleanTech company 44.01, a company that eliminates carbon dioxide by mineralising it in rock, has already raised $16.2 million up on joining Hub71 (last month) within its latest cohort.

The highest amount raised by a start-up joining Hub71 was $1.9 million in 2021 while the average funds raised by start-ups joining the community stood at $463,000.

Hub71 is backed by the Abu Dhabi government and Mubadala Investment Company, and has regularly unveiled initiatives to support the development of start-ups.

In October, it also set up a platform to drive capital investment in technology companies, including start-ups from the region’s family offices.

In September, it joined forces with Siemens Energy to support Abu Dhabi start-ups addressing climate change issues.

Hub71 has built a diverse capital ecosystem of active investment partners ranging from Abu Dhabi sovereign wealth fund Mubadala Investment Company to more than 30 venture capital firms to family offices, giving entrepreneurs various ways to gain access to funding and investors the opportunity to increase deal flow.

Its start-ups have access to a vast technology ecosystem of active investors and corporate, government and academic partners that act as key drivers for business growth.

Start-ups also benefit from flexible incentives to ease the process and cost of setting up, Hub71 said.