Sanad invests $5m in Jordan-based fund for SMEs

VC firm Silicon Badia's fund targets investments in early stage companies which are in need of equity

The Sand fund for MSMEs targets investments in countries such as Egypt, Lebanon, Jordan, the Palestinian Territories, Morocco and Tunisia. Alamy

The Sanad Fund for MSMEs has invested $5 million in a fund by Amman-based venture capital firm Silicon Badia that focuses on small and medium enterprises.

With its investment, the Luxembourg-domiciled fund helped close the first funding round for the $36m Badia Impact Fund Squared, managed by Silicon Badia, the company said in a statement on Tuesday.

The fund aims to invest in early-stage SMEs – with a focus on financial inclusion, healthcare, education, and smart transportation – that are in need of funding to scale up operations.

Sanad made the investment through its second Equity Sub-Fund, which was launched in 2019.

“We are proud to be a part of an endeavour that will channel funding to innovative enterprises which may otherwise lack access to the crucial financing they need to gain traction and expand," said Daniela Beckmann, Sanad board chair person.

Other confirmed investors in the Badia Impact Fund Squared include the European Bank for Reconstruction and Development, the Dutch Good for Growth Fund, and the Innovative Startups and SMEs Fund along with private Jordanian companies.

Sanad was founded in 2011 by the German development bank Kreditanstalt für Wiederaufbau (KfW) and is funded by US-based Calvert Impact Capital, Germany’s GLS Bank; the EU; and development finance entities of the Austrian, Dutch, German and Swiss governments.

Its latest sub-fund targets investments in Middle East countries such as Egypt, Lebanon, Jordan, Palestine, Morocco and Tunisia.

Funding for early stage start-ups has gained traction in the Middle East.

Earlier this month, investment firm The Cairo Angels rolled out a micro venture capital fund to invest in early stage start-ups in the region.

Mena start-up funding rose 35 per cent to reach $659m in the first half of this year, according to data platform Magnitt.