The CTO Show Brief: Issue 136

Author

Mehmet Gonullu
September 14, 2025

Sponsored Content

Angel & Accel Virtual Conf - Sept 25

Angel & Accel Virtual Conf takes place on Sept 25 on Zoom. Hosted by Max Pog .

2 tracks for investors and founders, 20+ speakers, 500+ investors.

3.5h Zoom sessions + 1.5h Virtual Networking Zone, and optional 1:1 pitch calls.

Speakers include leaders from Techstars, Plug and Play Ventures, Samsung Ventures America, and many others.

Register for free: https://pitchcalls.com/a?71

We arranged 25% off on optional add-ons: Super Pitching Ticket for startups and Super Networking Ticket for investors and others. Use code THECTOSHOW25 at checkout.

Welcome to Issue 136 of The CTO Show Brief!

Funding in MEA cooled from July highs but still showed resilience in August, with $337M raised across MENA (up 74% YoY) and $93M in Africa led by Nigeria, Egypt, and Kenya. Proptech and fintech dominated the regional momentum, while new funds and cross-border bets from Saudi, Qatar, and Tunisia added fresh capital flows. Globally, the week was marked by something bigger: the AI revolution moving from abstract models to physical infrastructure. From Apple’s on-device AI ecosystem to SpaceX’s $17B spectrum grab and hyperscalers’ $300B+ infrastructure race, the moat is shifting to chips, spectrum, and energy. For founders, VCs, and investors alike, the signals are clear: MEA is recalibrating with selective conviction, while globally, durable returns are consolidating at the physical layer of AI.

Whether you’re one of our 2,724 subscribers or a first-time reader—grab your coffee, and let’s dive into what’s shaping tech and venture this week!

MEA Tech Momentum

 

Regional Overviews

  • MENA startup funding drops to $337 million in August 2025, 74% higher YoY Wamda: MENA startup funding fell to $337.5 million across 47 startups in August 2025, down 57% from July but up 74% year-on-year, led by Saudi Arabia and UAE in proptech and contech. Female-led startups raised $72.3 million, reflecting a selective VC focus on scale-ups.

  • Chowdeck, others drive Africa $93m startup funding Punch NG: African startups, including Nigeria’s Chowdeck, raised $93 million in August, with Chowdeck securing $9 million for expansion in Nigeria and Ghana. Egypt, Kenya, and Nigeria led, capturing 75% of the total funding.

  • Proptech leads Mena startup funding in August AGBI: Proptech startups raised $96 million across four deals in MENA during August, with UAE’s Prypco securing a pre-Series A round. Total funding hit $337.5 million, up 74% year-on-year, driven by Saudi Arabia and UAE.

Startup Funding Rounds

  • Orbii closes $3.6 million seed to unlock $1 billion SME financing by 2026 Wamda: Saudi fintech Orbii secured $3.6 million in a seed round to power AI-driven SME lending, aiming to facilitate $1 billion in loans by 2026.

  • General Catalyst finances PRYPCO's pre-Series A round Wamda: UAE proptech PRYPCO raised a pre-Series A round led by General Catalyst to expand its mortgage and tokenised real estate offerings. The funding will drive regional scaling and regulatory partnerships.

  • Saudi contech Fitting raises $500,000 pre-seed Wamda: Saudi startup Fitting raised $500,000 in a pre-seed round to digitize building material procurement, supporting Vision 2030 projects. The funds will enhance tech and partnerships.

  • Metric raises funding to accelerate AI-driven financial solutions for SMEs Wamda: UAE fintech Metric secured funding from A-typical Ventures to enhance AI financial tools for SMEs, used by over 130,000 businesses. The investment will support GCC expansion.

  • 21Doctors secures pre-seed round to build AI-powered medical infrastructure Wamda: Jordanian healthtech 21Doctors raised a pre-seed round to develop AI-driven healthcare solutions for the Arab world. The funding will boost tech and Gulf partnerships.

  • CredibleX secures $100 million facility from Pollen Street Wamda: UAE fintech CredibleX obtained a $100 million credit facility from Pollen Street Capital to expand SME financing. It follows a $55 million seed round in 2024.

  • MoneyHash unites with noon payments to streamline GCC payment infrastructure Wamda: UAE fintech MoneyHash partnered with noon Payments to enhance GCC digital payment solutions. The collaboration aims to improve payment orchestration efficiency.

  • Jordan’s Dawadose closes pre-seed round, launches Saudi HQ Wamda: Jordanian healthtech Dawadose raised a pre-seed round to expand its digital pharmacy platform, opening a Saudi headquarters. The funding will support regional growth.

  • SA ed-tech startup The Invigilator raises $1.1m funding round Disrupt Africa: South African edtech The Invigilator secured $1.1 million to scale its AI-powered exam proctoring platform. The funds will enhance tech and expand in Africa.

  • Ampersand Rwanda & Kenya in Africa iMotorbike: Rwandan-Kenyan startup Ampersand raised funding to expand its electric motorcycle fleet and battery-swapping infrastructure. The investment supports sustainable transport in East Africa.

  • Tunisian startup Addvocate AI secures investment to boost sales tech expansion iAfrica: Tunisian AI startup Addvocate AI raised funding to scale its sales automation platform. The investment will drive product development and North African expansion.

  • Tern Group closes $24 million Series A to accelerate Europe expansion Wamda: UK-based Tern Group, with operations relevant to MENA investors, raised $24 million in Series A to expand its AI-driven logistics platform in Europe. The funding, backed by MENA-based VentureSouq, highlights cross-regional VC interest in scalable tech solutions.

Fund Launches & Investments

  • anb Capital and Lexham Launch USD 200M MENA Tech Growth Fund Waya Media: anb Capital and Lexham Partners launched a $200M fund targeting MENA tech firms for growth and pre-IPO investments. The fund supports Saudi Vision 2030’s venture ecosystem goals.

  • Qatari fund invests US$2 million in AI start-up Nexx SCMP: Qatar’s Rasmal Ventures invested $2 million in Hong Kong’s AI logistics startup Nexx to enhance warehousing operations, with potential MENA expansion. The fund aims to grow assets to $70-100 million by 2025.

  • XBO Ventures Invests $25M in Rapyd’s $500M Series F Ventureburn: XBO Ventures invested $25 million in Rapyd’s $500 million Series F to enhance crypto-native payment solutions. The partnership supports Rapyd’s Web3-ready infrastructure, with potential MENA applications.

  • VentureSouq closes second fintech fund backed by major regional LPs Wamda: VentureSouq closed its second fintech fund to support MENA early-stage fintech startups. The fund focuses on digital payments and financial inclusion.

  • 216 Capital, Plug and Play launch new accelerator to empower local startups Wamda: Tunisian VC 216 Capital and Plug and Play launched an accelerator for North African startups, offering mentorship and global network access. The program targets tech-driven innovation.

  • Sora Ventures launches Asia’s first $1B Bitcoin treasury fund Ventureburn: Sora Ventures launched a $1 billion Bitcoin treasury fund in Asia, with potential to influence MENA crypto markets through cross-regional investments. The fund aims to support blockchain startups, aligning with emerging market digital asset trends.

Shutdowns

  • Egypt’s TradeHub shuts down MenaBytes: Egyptian B2B startup TradeHub shut down after failing to achieve product-market fit, returning capital to investors. The closure follows a $1.4 million pre-seed round in 2024.

Emerging Market Insights

  • DOFRB Achieves Major Success in IPO: 3.13 Times Oversubscribed! YatirimX: Dof Robotik’s IPO, valued at 2.025 billion TL, was 3.13 times oversubscribed, reflecting strong investor interest in Turkey’s robotics sector. It highlights the growing tech startup scene in emerging markets.

  • Neotalent Takes Turkey's Potential to the Global Arena Analiz Gazetesi: Neotalent supports Turkish tech startups with consulting and investor connections, boosting global visibility. Since 2017, it has strengthened Turkey’s entrepreneurship ecosystem.

VC Perspectives

  • Startup Funding: Mokhtar Ibrahim, Investment Principal, BECO Capital Entrepreneur: BECO Capital’s Mokhtar Ibrahim advises MENA founders to leverage AI in logistics and fintech, emphasizing evidence-based narratives. The VC targets startups in Saudi Arabia’s growing market.

 

🌍 Global Tech & VC Pulse

The week of September 8, 2025, will be remembered not for disconnected headlines but for a deeper convergence: the corporealization of AI. The revolution is no longer about abstract models — it’s about the hardware, spectrum, energy, and capital flows that decide who builds durable moats.

🍏 Apple’s Edge: Building the On-Device AI Moat

Apple’s iPhone 17 launch was a statement of strategy, not just design.

·       iPhone 17 & 17 Pro → democratizing ProMotion displays and refining industrial design, raising the bar for the entire market.

·       iPhone 17 Air → the thinnest iPhone ever at 5.5mm, pivoting from “bigger is better” to elegance and portability as the premium hook.

·       A19 chip → powering on-device AI with enhanced neural accelerators for privacy and low latency.

·       N1 wireless chip → Wi-Fi 7 + Bluetooth 6, future-proofed for XR and high-bandwidth AI.

·       AirPods Pro 3 → H3 chip with real-time translation + heart-rate sensor, turning earbuds into health/AI devices.

·       Apple Watch Ultra 3 → brighter displays, 5G, faster charging, plus satellite emergency connectivity.

 

Apple isn’t just selling gadgets. It’s engineering a seamless AI ecosystem where phones, hearables, and wearables act as ambient computing interfaces. For rivals tied to the cloud, that means an expensive re-architecture — or surrendering ground on privacy, personalization, and latency.

 

🚀 SpaceX Buys Spectrum — and the Future of Connectivity

On September 8, SpaceX announced a $17B acquisition of EchoStar’s spectrum assets.

·       The deal: $8.5B cash, $8.5B equity, and $2B to cover EchoStar’s debt.

·       The asset: nationwide AWS-4 and H-Block spectrum — rare mid-band licenses that balance coverage and capacity.

·       The context: EchoStar faced FCC pressure to use or lose spectrum; this deal let them deleverage and exit.

 

For SpaceX, this is transformative. It gives Starlink full control of its Direct-to-Cell service, removing reliance on carrier partnerships. Boost Mobile subscribers folded into the deal mark the start of merging satellite and terrestrial telecom.

 

⚡ The Infrastructure Arms Race

2025 is the year hyperscalers stopped talking about AI and started building the industrial backbone.

·       Microsoft inked a $19.4B infrastructure deal with Nebius, part of a record $320B+ annual capex across hyperscalers.

·       NVIDIA calls this the rise of “AI factories” — purpose-built data centers optimized for model training and inference.

·       Beyond GPUs, second-order bottlenecks are driving M&A:

o   Microsoft’s MOSAIC optical link → faster, low-power data transfer.

o   Crusoe’s acquisition of Atero → GPU memory optimization.

o   Qualcomm’s purchase of Alphawave → high-speed interconnects.

·       Energy is now part of the stack. The demand from AI data centers is so high that energy M&A is booming — power generation has become a strategic moat.

💰 VC’s Great Bifurcation

The venture market is splitting in two.

·       AI-native giants → raising massive rounds (Replit: $250M at $3B). Six mega-funds now drive one-third of all U.S. venture capital.

·       Non-AI startups → fundraising is slower, valuations tighter, LPs hesitant until big exits return.

·       Geographic concentration → nearly 70% of U.S. VC investment this year went into the Bay Area.

·       Bubble signs → AI companies burning $5 for every $1 of revenue. Even VCs admit the correction isn’t if but when.

Yet, targeted capital is still flowing. Deals of note this week:

·       Apex (Spacetech, $200M Series D).

·       Diana Health (women’s health, $55M Series C).

·       resbiotic (gut health/wellness, $14.5M).

·       Sophont (medical AI, $9.22M seed).

·       Quack (enterprise AI for customer support, $7M seed).

This reflects the paradox: hype-driven mega-deals in AI alongside steady bets in specialized health and infrastructure plays.

 

🔮 The Next Horizon: AI Applications and Quantum

AI value is moving up the stack into targeted verticals:

·       Government: Perplexity for Government.

·       Healthcare: Oracle AI Center, Sophont multimodal AI.

·       Commerce: Ralph Lauren’s AI stylist.

·       Productivity: Claude generating files, Replit’s Agent 3.

Meanwhile, quantum is crossing a critical threshold:

·       Modularity: superconducting qubits linking like LEGO.

·       Fundamentals: graphene electrons behaving as a “quantum fluid,” heavy electron entanglement in Japan.

·       Spillover tech: superconducting detectors built for quantum now sensitive enough to hunt for dark matter.

📌 Bottom Line

The AI revolution is no longer abstract. It’s physical — chips, spectrum, power, and infrastructure.

·       For LPs: Defensibility is consolidating at the physical layer. That’s where durable returns will be built.

·       For VCs: The bifurcation demands balance — avoid chasing hype blindly, but don’t miss “picks & shovels” in energy and infrastructure.

·       For founders: Clarity of moat matters more than ever. If you’re AI-native, it can’t just be access to a model. If you’re outside AI, efficiency and profitability are your ticket.

 🎙️Episodes Recap:

 

In this episode of The CTO Show with Mehmet, I sit down with Tomas Navickas , Co-Founder and CTO of myTU, a digital-first financial institution known for running an entire bank on less than €1,000/month in cloud costs. We explore how efficiency, AI, and smart architecture are redefining the future of digital banking and fintech.

In this episode of The CTO Show with Mehmet, I sit down with Rob J. Matzkin , a serial entrepreneur, investor, and connector who has built and exited multiple companies and now advises startups on scaling, fundraising, and execution.

Reach founders, tech leaders, and investors across MENA and beyond through this newsletter and The CTO Show with Mehmet. Let's Talk

 

📖 From Nowhere to Next

 Every week I share startup lessons and stories through The CTO Show Brief. But if you want to go deeper, my book From Nowhere to Next brings together the experiences and insights that shaped my own journey.

 Thanks for reading — and for being part of this growing, global-minded network.

— Mehmet