The CTO Show Brief: Issue 138

Author

Mehmet Gonullu
September 28, 2025

Welcome to Issue 138 of The CTO Show Brief!

From Silicon Valley’s $100B AI infrastructure bets to Riyadh’s record-breaking fintech rounds, the past week highlights a world of contrasts and convergence. On the global stage, capital is concentrating at historic scale into compute, AI-native specialists, and strategic mega-deals that are redrawing the map for the next decade. At the same time, the MEA region is surging ahead, with sovereign funds, VCs, and founders fueling an ecosystem aligned with Vision 2030 ambitions and global deep tech shifts.

Whether you’re one of our 2,761 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

Startup Funding Rounds

  • Saudi fintech erad raises $33 million debt round led by Stride Ventures Saudi fintech erad, based in Riyadh, secured $33 million in debt financing led by India’s Stride Ventures—marking Stride’s first major investment in Saudi Arabia—to expand its Shariah-compliant financing for SMEs in Saudi Arabia and the UAE. The funding, closed during Money20/20 Riyadh with other investors, will support erad’s growth and meet increasing demand from sectors like retail, F&B, healthcare, and e-commerce, following a previous $16 million pre-Series A round. Wamda

  • Epic Padel secures $10 million to launch to back global padel ventures Epic Padel, a US-based padel operator and investor founded in 2023, raised $10 million in a seed round led by NowaisWorld and Stryde Ventures to expand its vertically integrated padel platform, which includes club operations, early-stage investments, and tech infrastructure, across the US and emerging markets. The funding will support the launch of 4–6 new clubs in states like Virginia and Utah, and bolster its global portfolio, including ventures like Padel India and Two Two in Sweden, aiming to grow the sport’s ecosystem in both established and emerging markets. Wamda

  • Emergent raises $30m to accelerate global growth and expand into MENA Emergent, a fast-growing AI startup founded in 2025 in San Francisco, has raised $30m in funding, including a $23m Series A led by Lightspeed, to expand into the MENA region and empower entrepreneurs and small businesses to build and scale applications without coding. The funding will support its growth in emerging markets like the Middle East, aligning with digital transformation initiatives such as UAE Vision 2030 and Saudi Vision 2030, and follows Emergent's rapid achievement of $15m in annual recurring revenue within 90 days of launch. Gulf Business

  • SNG: Bahrain: Figure AI raises more than $1bln in Series C funding Figure AI, a California-based robotics company, secured over $1 billion in its Series C funding round, reaching a $39 billion valuation, with investments from Parkway Venture Capital, Arcapita Group Holdings, and strategic partners like Brookfield Asset Management and NVIDIA. This funding round highlights the growing interest in AI and robotics startups in emerging markets, with regional investors like Arcapita playing a key role in bridging capital to global innovation in the MEA region. TradingView

  • M2 announces $20 Million investment in Ethena ($ENA) as part of Strategic Venture for Middle East M2 Capital Limited, the investment arm of UAE-based M2 Holdings, has made a $20 million strategic investment in Ethena ($ENA), the governance token of the Ethena protocol, to enhance its digital asset offerings in the Middle East. This move is part of M2's efforts to integrate innovative digital asset products like Ethena’s crypto-native synthetic dollar, USDe, into its wealth management platform, leveraging the region's growing demand and regulatory framework for digital assets. The investment underscores the increasing activity of venture capital in the Middle East and emerging markets, focusing on digital asset solutions and stablecoin innovations. Business Insider Markets

  • Raiven Capital (Dubai) Invests in Vertical Harvest to Advance Global Food Resilience Raiven Capital, a Dubai-based VC firm, has invested in Vertical Harvest, a vertical farming startup, to support innovative agritech solutions aimed at enhancing global food security and sustainability in emerging markets. This investment aligns with MEA's focus on tech-driven agriculture to address climate challenges and food resilience. PR Newswire

VC Fund Launches & Commitments

  • Presight, Shorooq launch $100 million global fund to accelerate AI innovation Presight and Shorooq, based in Abu Dhabi, have launched a $100 million global AI innovation fund targeting early to growth-stage startups worldwide, focusing on sectors like AI, ML, smart cities, energy, fintech, AR/VR, Industry 4.0, and deep tech. The fund, Presight–Shorooq Fund I, aims to provide capital and resources such as GPU access and distribution networks, leveraging the UAE’s infrastructure to position Abu Dhabi as a hub for AI solutions. Wamda

  • ANAVA commits $4 million to Rasmal Ventures to link Tunisian startups with MENA VC Tunisia’s ANAVA Fund of Funds has invested $4 million in Qatar’s Rasmal Innovation Fund I to enhance venture capital flow into Tunisian startups and strengthen ties within the MENA ecosystem. Rasmal Innovation Fund I, part of Qatar Investment Authority’s $1 billion program, aims to raise $100 million to invest in startups from seed to Series B across sectors like fintech, B2B SaaS, healthtech, and logistics, supported by international and regional backers. Wamda

  • Avanz Capital Egypt joins Algebra Ventures Fund II as Limited Partner Avanz Capital Egypt (ACE) has joined Algebra Ventures’ second fund, a $100M fund raised in 2022, as a Limited Partner through a secondary transaction via its direct investment arm Avanz Manara, marking one of the first such deals in Egypt. This partnership aims to deepen capital inflows and support tech startups in Egypt and Africa, reflecting growing confidence in the region's venture capital ecosystem. Wamda

  • Hedef Girişim New Venture  Hedef Girişim Sermayesi Yatırım Ortaklığı A.Ş has decided to make an additional investment of 121,999,997.89 TL in the Startup Burada Fund, as announced on the Public Disclosure Platform (KAP). This decision highlights ongoing venture capital activities in Turkey, focusing on supporting tech startups through fund investments. Hibya

Accelerator & Program Launches

  • The Deal Maker: How Plug and Play Became North Africa’s Startup Kingmaker Plug and Play is expanding its influence in North Africa by launching structured initiatives like the 216 Capital Venture Accelerator in Tunisia and a new accelerator in Morocco, aiming to enhance investment readiness and international market access for local startups. The organization, known for its corporate-funded model that does not require equity from startups, is integrating the region into its global network, which includes over 250 venture capital funds and 800 corporate partners, while also making 18 deals in Africa in 2022. This expansion is part of a broader strategy to build ecosystems in emerging markets, facilitating connections between startups, corporations, and investors. Launchbase Africa

  • Antler, Mubadala partner to launch National Founders Programme Mubadala Investment Company, in partnership with Antler and Hub71, has launched the National Founders Programme, a six-week initiative in Abu Dhabi to transform university research into commercially viable startups, focusing on ideation, venture validation, and founder development. The programme, hosted by Hub71, aims to strengthen Abu Dhabi’s innovation ecosystem by connecting participants with local technology and investment networks, supported by Mubadala’s investment in Antler and its role in fostering high-growth sectors in the UAE. Wamda

  • New MDIF Programme Backs Media Startups Across Southern Africa with Funding and Growth Support The Media Development Investment Fund (MDIF) has launched Amplify Southern Africa, a new programme providing mentoring, technical support, and grants to media startups in South Africa, Zimbabwe, Zambia, Botswana, Namibia, and Lesotho to help them scale and innovate. This initiative aims to support early- to mid-stage media ventures in building sustainable businesses and expanding reach, building on the success of MDIF’s previous South Africa Media Innovation Program, which aided 27 outlets from 2017 to 2023. Ventureburn

  • UAE launches national campaign to become the Startup Capital of the World The UAE has launched “The Emirates: The Startup Capital of the World” campaign, led by H.H. Sheikh Mohammed bin Rashid Al Maktoum, to position the country as a global hub for entrepreneurship, involving over 50 public and private entities and aiming to train 10,000 Emirati entrepreneurs by 2030. The initiative, supported by the Ministry of Economy and Tourism, includes programs like StartupEmirates.ae for mentorship and job creation, targeting 30,000 jobs and further boosting SMEs, which already contribute 63% to the non-oil GDP. Wamda

  • Arāya Ventures Expands Into GCC with New Leadership and Investor Academy Arāya Ventures, an early-stage venture capital firm, is expanding into the GCC region with new leadership, locally anchored investment platforms, and the Araya Investment Academy to support early-stage innovation, particularly in Saudi Arabia, focusing on AI-driven and fintech startups. The firm has appointed Omar Khan as the new head of GCC to lead capital raising and partnerships, and is scaling up its investor education initiative with programs planned in Dubai and Riyadh to equip executives and investors for early-stage investing in emerging markets. The Fintech Times

Events & Reports

  • Dubai Chamber unveils new features for Expand North Star 2025 Dubai Chamber of Digital Economy will introduce new features at Expand North Star 2025, including ScaleX to support 100 fast-growing tech companies in expanding into the Middle East, the Consumer Tech Zone for AR/VR and smart health startups, and North Star Green Impact focusing on climate-tech with a 40% investment rise in 2023. The event, marking its 10th anniversary from October 12-15 at Dubai Harbour, will also feature the Deeptech MEA Summit on AI and quantum computing, and the Digital Assets Forum on digital currencies, aligning with Dubai’s goal to be a global innovation hub. Gulf Business

  • El Gouna to host Entlaq's Entrepreneurship Sector Diagnostic Report launch The third edition of the Egyptian Entrepreneurship Sector Diagnostic Report (SDR 2025) will be launched from 25 to 26 September 2025 in El Gouna, bringing together ministers, senior officials, international experts, and over 40 Egyptian and global investors to discuss the future of entrepreneurship in Egypt. The summit, hosted at Abu Tig Marina and marking the opening of Abu Tig Island, aims to foster dialogue on supportive policies, financial inclusion, and cross-border capital flows, highlighting El Gouna’s role as a hub for innovation and entrepreneurial growth in the region. Wamda

  • Qatar’s Be My Sense crowned winner at Startup Grind Doha All Star Pitch Battle Startup Grind Doha hosted the All Star Pitch Battle at Qatar Chamber in Lusail, where Be My Sense won first place with its AI-powered sign language translation platform, earning $1,500 and a chance to represent Qatar in the regional semi-finals, highlighting the growing entrepreneurial ecosystem in the region. The event, supported by Builders VC MENA and other ecosystem enablers, featured 21 selected startups out of 51 applicants, showcasing innovation and venture capital engagement in Qatar’s startup landscape. Wamda

Ecosystem Developments

  • Africa’s Startup Scene: The Big Four Dominate Startup Funding as Fintech Leads The Charge Africa's startup ecosystem is led by Nigeria, South Africa, Kenya, and Egypt, collectively known as the "Big Four," which dominate venture funding with nearly 80% of the Top 100 most-funded startups based in these countries, and fintech leading with 42 ventures securing over $1 billion in 2025. South Africa has 23 startups with 15 in fintech, while Nigeria, with 22 startups, includes seven of the Top 20 high-performing ventures like Opay and Flutterwave, and other emerging markets like Ghana are also gaining traction with startups such as mPharma. Tekedia

  • Valu offers Egypt first P2P BNPL solution with MobileMasr Valu, a leading financial technology company in the MENA region, has partnered with MobileMasr, Egypt’s first tech-driven platform for second-hand electronics, to launch the first peer-to-peer Buy-Now, Pay-Later (BNPL) service for pre-owned smartphones in Egypt, enhancing secure transactions with flexible payment plans. This initiative targets the expanding but largely informal Egyptian secondhand mobile market, introducing innovative financial solutions and extending device lifecycles while reducing electronic waste. Wamda

  • PayPal to invest $100 million in Middle East and North Africa startups PayPal Holdings plans to invest $100 million in startups across the Middle East and North Africa, utilizing channels like minority investments, acquisitions, and funding from PayPal Ventures to expand in these emerging markets. This investment builds on existing stakes in regional tech startups such as Tabby, Paymob, and Stitch, aiming to strengthen PayPal’s presence in the region. Investing.com

  • Qatar Investment Authority and Blue Owl Capital Enter Agreement to Establish Digital Infrastructure Partnership Qatar Investment Authority (QIA) and Blue Owl Capital have entered a strategic agreement to form a digital infrastructure partnership, targeting investments in data centers, fiber networks, and cloud services to bolster MEA's tech ecosystem. This collaboration aims to support emerging market startups by enhancing digital infrastructure, fostering innovation in AI and connectivity sectors. PR Newswire

🌍 Global Tech & VC Pulse

A Market of Extremes

This week’s global tech and venture landscape is defined by extremes: historic capital flows into AI infrastructure, mega-mergers reshaping telecom and space, a VC funnel narrowing to AI-native specialists, and geopolitical shocks disrupting talent. Taken together, these moves mark the dawn of a new era: the Great Build-Out of global intelligence infrastructure.

Access to compute is becoming the ultimate strategic asset—today’s equivalent of oil. Whoever controls it will set the terms of competition for the next decade.

The Great Build-Out: AI Infrastructure at Astronomical Scale

·       Nvidia–OpenAI Megadeal: Nvidia commits up to $100B to build data centers powering OpenAI’s next-gen models—deploying 10 GW of compute, rivaling the energy draw of major cities.

·       Big Tech (Meta, Amazon, Google, Microsoft) collectively plan $320B in AI infra expansion.

·       This creates compute sovereignty as the new geopolitical lever: nations lacking domestic infra risk dependence on U.S. or China. Expect accelerated EU and China sovereign AI projects.

·       Investor angle: massive opportunities in “picks & shovels”—energy producers, data center operators, high-performance connectivity, and semiconductor supply chains.

Strategic Consolidation: Mega-Deals Redraw Maps

·       SpaceX acquires $17B spectrum assets from EchoStar → vertical integration of Starlink “Direct to Cell.” Musk is no longer just disrupting; SpaceX now behaves like an incumbent, controlling spectrum, satellites, and devices.

·       M&A trend: volume down, value up → buyers chase high-quality, strategic assets (IP, infra, market leadership).

·       Founder takeaway: exits will favor companies with defensible tech + strong economics, not growth-at-all-costs.

The VC Funnel Narrows: AI Specialists Take It All

·       Fundraising boom: First Round Capital ($500M AI Fund X), Tribe Capital ($150M AI Fund IV), C4 Ventures doubling down on European AI.

·       Outside AI: capital winter. Example: India’s digital lending down 50% YoY.

·       Key shift: VCs favor “super-specialist” AI startups with deep domain expertise + proprietary data.

·       Examples:

o   Predoc (Healthtech AI) → $30M Series A.

o   CHARM Therapeutics (Oncology AI) → $80M Series B.

Talent Shock: The U.S. H-1B “Fee Bomb”

·       Trump admin proposes $100K H-1B visa fee → chaos in Silicon Valley.

·       U.S. risks undermining its AI talent pipeline at the exact moment demand is surging.

·       Winners: Toronto, London, Paris, Bangalore → can position as more stable hubs.

·       Founder lesson: distributed teams are no longer optional—they’re strategy.

From Potential to Production: Vertical AI Goes Revenue-First

·       EliseAI (Real estate + healthcare workflows) → $250M Series E, $100M ARR, $2.2B valuation.

·       LayerX (Enterprise back-office automation) → $100M Series B, scaling to $68M ARR.

·       Pattern: winners are embedding AI into legacy workflows with measurable ROI (e.g., “3x agent efficiency” or “75% faster record retrieval”).

·       This is the “boring AI” revolution: less AGI hype, more workflow-native automation.

The Dawn of Agents: SaaS 3.0 Arrives

·       Notion 3.0 launches AI agents with memory + connectors → mainstreaming agentic workflows.

·       Stripe & Coinbase enabling agents to spend + transact → agents enter real-world commerce.

·       SaaS 1.0 = digital tools.

·       SaaS 2.0 = AI copilots.

·       SaaS 3.0 = autonomous agents → software becomes the user.

·       Opportunity: infrastructure picks & shovels—agent orchestration, databases, authentication, and trust frameworks.

What This Means

 

The rules of tech & VC are being rewritten:

·       Infra is power. Compute = oil.

·       Quality is scarce. Only elite startups win premium exits.

·       VC is bifurcated. AI attracts capital; others must prove unit economics.

·       Talent is global. Policy shocks = opportunity for rival hubs.

·       Applications matter. AI’s value lies in ROI-driven workflows.

·       Next frontier. Agents are the paradigm shift that could define SaaS for the next decade.

 

For founders, investors, and operators → the challenge is clear: adapt to this market of extremes or risk irrelevance.

 🎙️Episodes Recap:

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📖 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